Common Reasons Why You Can’t Open A Bank Account Online

Florence Desiata

Opening a bank account online is pretty straightforward. You have to fill up an application form and submit the necessary documents. However, there are instances when customers’ applications are denied. 

This raises the question; why can’t you open a bank account online? Find out here. 

Why Can’t I Open An Account Online?

These are the most typical reasons why people are unable to open a bank account online:

Unsuccessful Account Verification

Identity verification is a process that ensures a person’s identity and the validity of the information that is provided. It is usually based on data confirmation of one’s personal information by asking them for the following documents: 

If you plan on opening a bank account online, ensure you have your identification documents ready. 

Involuntary Account Closure

This implies that the bank discovered the customer’s mismanagement and abuse of his/her banking privileges that no longer benefits them. Breaking bank rules only reveals one thing: you cannot properly manage your account, which can lead you to lose chances for applying for a new account in the future, as banks normally report banking histories to ChexSystems

Uncontrolled Overdraft Fees

When you go on a shopping spree and don’t have enough balance to cover the expenses, your bank will give you the funds to close the transaction. The money they cover will then become an overdraft fee.  

Once they’re piled up, the bank can freeze your account until overdrafts are paid off. Ensure your balances are above zero to avoid this difficult financial situation and pay the charges on time.

Double-check Your Financial History

Keeping track of your banking activities would absolutely save you a trip to any branch of your desired bank. 

ChexSystem is a consumer credit reporting agency that gathers and restores data on closed deposit accounts at banks and credit unions. It traces issues on accounts, such as: 

  • Overdrafts
  • Negative balances due to unpaid fees
  • Bounced checks

This agency provides financial institutions with a report on whether an individual is a potential customer. If you’re told that you cannot open a bank account,  the first thing that you will do is request a copy of your consumer disclosure.

You might see on the report that you are charged with identity fraud, overdrafts, unpaid balances, or even bounced checks. Take a moment to review if all the details listed are correct. If you spot some discrepancies, file a report and dispute it. Once the investigation is done, you will know whether you can apply for a bank account.

Bottom Line

Opening a bank online is usually quick and easy, but it’s not 100% assurance that you will be successful. Make sure to take note of the reasons mentioned as to why you can open a bank account online. 

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