And Why They Matter for Rent Payments in Pendo
If you’ve ever set up direct deposit at work, you’ve probably come across microdeposits; those tiny verification payments (like $0.12 or $0.34) that show up in your bank account before anything else happens.
At Pendo, we give users and tenants 2 options for linking bank accounts. The first is by linking your account into Pendo online; this will prompt you to log into your bank account directly which confirms with us that you authentically own this account. The other way is by manually entering your bank details. For the latter we use an additional step – microdeposits – to verify new bank accounts are authentic before any rent gets pulled or deposited. It’s a simple, secure step, but if you haven’t seen it before, it can raise questions.
Here’s what microdeposits are, why we use them, and what landlords and tenants should expect when linking a new bank account in Pendo.
What Are Microdeposits?
Microdeposits are small test transactions (usually a few cents) sent to a bank account to confirm:
- The account is valid and active
- It belongs to the person claiming it
- It can receive or send payments securely
They’re a standard verification method used by banks, payroll systems, and payment processors across North America.
Why Pendo Uses Microdeposits
We’re not in the business of guessing whether a bank account is real.
Before we allow rent payments to be pulled from or deposited to any bank account, we use microdeposits to verify ownership. This:
- Reduces the risk of fraud
- Prevents money from being sent to the wrong place
- Helps us comply with FINTRAC, PIPEDA, and other Canadian financial regulations
See: Why Identity Verification Matters for Landlords (and Tenants)
When Does This Happen in Pendo?
Microdeposit verification kicks in when:
- A tenant links a new bank account to pay rent via PendoPay manually
- A landlord adds or changes the account they want rent deposited into manually
Both sides must complete this process before payments are activated.
How It Works (Step by Step)
- You add a new bank account manually in Pendo
- Within 1–2 business days, two small deposits appear in that account
- You log into Pendo and enter the exact deposit amounts
- Once confirmed, the account is marked as verified
- Rent payments can now be scheduled, pulled, or deposited
Important: You must enter the correct amounts to complete verification. If the deposits don’t match, the account won’t be activated.
Why Not Use Instant Verification?
Some platforms offer instant bank linking through third-party services, but many Canadian banks don’t support that consistently—or securely.
Microdeposits are:
- Bank-agnostic (works with any Canadian FI)
- Non-invasive (no need to share banking credentials)
- Fully traceable and compliant with Canadian regulations
Plus, many landlords and tenants feel more comfortable using a method they recognize and control.
How Long Do Microdeposits Take?
Microdeposits typically appear in the recipient’s bank account within 1–2 business days, though this can vary slightly depending on the institution.
If it’s been more than 3 days and you still don’t see the deposits, double-check:
- You entered the correct account and transit numbers
- You’re checking the right bank account
- There are no bank holds or verification delays
Still stuck? Contact Pendo Support and we’ll help you troubleshoot.
What Tenants Might Ask (and How to Answer)
“What is this weird $0.13 deposit in my account?”
This is a verification deposit from Pendo. They confirm your bank account is valid so we can pull rent safely.
“Do I get to keep them?”
Yes, it’s yours. We don’t claw them back. (Some people joke that it’s free coffee money.)
“Do I have to do this every time I pay rent?”
No, just once per account.
See: What Happens When a Tenant Submits Rent Through Pendo
Microdeposit Verification: Built-In Peace of Mind
With microdeposits, you:
- Avoid misdirected rent payments
- Confirm your tenant’s bank account is real
- Stay compliant with anti-fraud and identity verification rules
- Build trust in your rental process—for both sides
In a world of e-transfers, phishing scams, and banking uncertainty, a few cents might seem small, but they do a lot of heavy lifting behind the scenes.
Pendo’s microdeposit verification process gives both landlords and tenants the confidence that their money is going to the right place.
