Third-Party Verification - TPV

DEFINITION of 'Third-Party Verification - TPV'

When an outside organization reviews a customer's information to ensure that it is accurate, and to confirm intent. Third-party verification is often used with sales departments to verify that a potential customer has interest before passing the customer on to a salesperson. TPV is also used in situations in which a customer wants to provide or update information but cannot readily deliver a contract or physical copy of that information because the update is occurring over the phone or online.

BREAKING DOWN 'Third-Party Verification - TPV'

Third-party verification allows a company to reference the interaction history of an independent third party in the case that a customer says that he or she did not authorize an account change or transaction to take place. In order to move out of the verification process, the customer must agree that a transaction is going to take place, which demonstrates that the agreement is legally binding. It is sometimes required by law, especially with the advent of the internet and do-not-call phone lists.