Bank account verification with Open Banking

Adyen's verification through bank report service uses Adyen's Open Banking Gateway to retrieve bank account reports from third-party banks.

For example, you consider hiring an unregistered user on a contract-basis for services, such as food-delivery or as a courier. You want to make sure the person is who they say they are before you enter into an agreement with them for their services.

You can verify users through Account Information Service Providers (AISPs) such as Plaid or Tink. The user can authorize their bank to share a bank account verification report with you, providing know your customer (KYC) verification quickly and securely.

Requirements

You need the following role, which your Adyen contact can set up for you:

• Role for OpenBanking account verification use case - EXTERNAL

In addition to this role, you need to provide Adyen the following information to configure and display your company name and logo within the widget when you hand over control to Adyen's Open Banking Gateway.

How it works

When you want to verify a user through a redirect, use the following flow.

1. Make a call to the Routes generation endpoint to receive a list of account verification routes. You can use these routes to receive a report token to exchange for a bank account report. Reference this bank account report to verify the identity of your user.
   The routes generation endpoint dynamically compiles and returns a list of the best AISPs available for account verification based on the location of the bank where the user (the external account holder) is registered, and the redirect URL where you want to receive the report token.
2. Redirect the user to the AISP's bank selection and authentication/authorization flow. After the user completes the authentication flow and authorizes their bank to generate and share a report, the merchant receives a report token (or error info) at the redirect URL the merchant specified in the routes generation request.
3. Use the report token to call the verification report endpoint. This call retrieves a report containing information about the account holder and account number (ACH, EFT, IBAN) the user has agreed to share with the merchant.

Generate a list of routes

Make a POST /routes call specifying these request parameters:

Redirect user and handle the result

The Adyen Open Banking Gateway endpoints handle the outgoing and incoming communications to and from the AISP. The account holder opens the route link, the gateway then handles the outgoing communication to route the user to the account verification flow at the external financial institution.

When the verification flow at the external financial institution is finished, the gateway handles the redirection from the external financial institution to redirect the user back to the redirectUrl provided in the routes generation request.

The gateway includes a report token as a query parameter (Redirection Successful Callback). You can use this token to download the report from the gateway reports endpoint. In cases where there are errors, the user is redirected to the redirectUrl with the error information in query parameters (Redirection Error Callback).

Redirection successful callback

Redirection error callback

Here's a list of error codes and corresponding error messages you can receive from Adyen's Open Banking Gateway. Depending on the context of the error code and message, you choose how to handle the error and present options to your user.

View the verification report

To download the verification report for a user, make a GET reports/{reportToken} call to the verification report endpoint. When making the call, pass the report token code you received as a result of a successful callback to the open banking flow.

The response returns the report resource, identified by its unique id. You also receive the country where the report was generated, and the accounts that were verified through the open banking authorization flow.

SDK for Adyen Open Banking

The Adyen SDK for Open Banking can be used with Javascript to initiate the authorization flow to allow an Open Banking partner to generate a bank account verification report.

The SDK model uses an npm package which has two callbacks, success or error, with the same information Adyen shares in the redirect model.

To use the Adyen OpenBankingSDK:

1. Install the Adyen OpenBankingSDK.

npm install @adyen/openbankingsdk --save

2. Import the package.

import OpenBankingSDK from '@adyen/openbankingsdk';

3. Create a div in your javascript implementation's Document Object Model (DOM).

<div id="open-banking-container"></div>

4. Open the link using the library.

const openBanking = OpenBankingSDK.create({
    divElement: document.getElement("open-banking-container"),
    link: url,
    successHandler: (code, state) => {

    },
    errorHandler: (errorCode, errorMessage, state) => {

    },
  });
openBanking.open();

5. After you receive the result, close the library by destroying the open banking instance.

openBanking.destroy();