Understanding Validations vs. Verifications in PaymentWorks

Definition: Validation confirms that something is accurate or real.
- Example: An address is "valid" if it exists as a real location.
Scope: Validation does not confirm ownership or association, only accuracy or existence.
Current Validations in PaymentWorks:
- Addresses: Validated to confirm they exist and match known databases.
- Phone Numbers: Checked for proper format and existence.
- TIN/EIN/SSN Format: Ensures proper length and digit structure.
- Sanctions: Checks entities against sanctioned or watch lists.

Definition: Verification confirms ownership or association with the provided data.
- Example: An address is "verified" if it can be confirmed that you or your organization reside there.
Scope: Verification is a stronger assertion than validation. For data to be verified, it must also be valid.
Current Verifications in PaymentWorks:
- Banking Information: Verified to ensure ownership of the provided account.
- TIN/EIN/SSN: Verified against the IRS to confirm legal ownership.
- Sanctions: Verified against sanction lists to ensure compliance.

Validation: Confirms something exists or is formatted correctly.
Verification: Confirms ownership or association with the data.
- Note: Verification inherently includes validation; however, something can be valid without being verified.

In PaymentWorks, the terms validation and verification describe different levels of checks performed during the onboarding and vendor management process. Here's a clear distinction to help you understand these concepts: