What is 'Third-Party Verification - TPV'

Third party verification (TPV) is when an outside organization is used to review and confirm a customer's information and intentions to ensure accuracy. Third-party verification is typically done by conference call and often used with sales departments to verify that a potential customer has interest in or agrees to a purchase before passing the customer back or 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 maintained by an independent third party in the case that a customer claims that 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 to consent to a transaction that is going to take place, which demonstrates that the agreement is legally binding. TPV is sometimes required by law, especially with the advent of the internet and do-not-call phone lists.

Using Third Party Verification

An example of third party verification would be when a customer speaks with a cable television sales rep to make changes to a plan. After reviewing options and determining that the customer would like to proceed, and will accept a new contract for a period of time, the sales rep will conference to a third party. The TPV may just be a timed and tracked recording service that is a separate entity from the cable company. The sales rep will then review the changes and the customer's personal information and have them verbally agree to the new contract on the recorded line.

  1. Customer

    A customer is an individual or business that purchases the goods ...
  2. Customer Information File (CIF)

    A Customer Information File (CIF) is a computerized file that ...
  3. Third-Party Beneficiary

    A third-party beneficiary is an individual who can sue parties ...
  4. Address Verification Service - ...

    Address verification service (AVS) is a tool used by credit card ...
  5. Party Wall

    In real estate, a party wall is a shared wall that separates ...
  6. Mining

    Mining validates transactions on the cryptocurrency network and ...
Related Articles
  1. Tech

    Now There's a Crypto Vending Machine for Beer

    The machine can determine whether a potential customer is of legal drinking age.
  2. Investing

    Party City Holdings: How It's Fared Since Its 2015 IPO (PRTY)

    Learn about Party City Holding's performance as a public company. Investors would have lost much more than the Russell 2000 Index by investing after the IPO.
  3. Tech

    Get Approved for a Mortgage in an Hour

    The traditional mortgage approval process takes 2-4 weeks, but tech companies have reduced the time to get approved for a mortgage to less than one hour.
  4. Financial Advisor

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  5. Tech

    Blockchain Wars: IOTA's Tangle Takes on Ethereum

    IOTA's blockless ledger Tangle wants to position itself as a viable alternative to Ethereum's blockchain.
  6. Small Business

    Are Hulu And Netflix A Credible Threat To Cable?

    The ease and accessibility of online-video and streaming services is posing a threat to the cable industry's standard model of television programming.
  7. Investing

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.
  8. Investing

    Party City Slides on Surprise Secondary Offering

    Shares of Party City Holdco (NYSE: PRTY) plunged 8% on Friday after the party goods retailer abruptly announced a secondary offering of 10 million shares. The offering will be made on behalf ...
  9. Taxes

    Terms & Conditions - Investopedia.org 2018 Grant Agreement

    These are the terms and conditions for Investopedia.org's 2018 grant agreement.
  1. How do you make working capital adjustments in transfer pricing?

    Understand how working capital adjustments are applicable to transfer pricing. Learn about the arm's length standard and ... Read Answer >>
  2. What is the difference between a letter of intent and a memorandum of understanding?

    Understand what a letter of intent and a memorandum of understanding are, and learn the primary difference between the two ... Read Answer >>
  3. How does a forward contract differ from a call option? (AAPL)

    Find out more about forward contracts, call options, the mechanics of these financial instruments and the difference between ... Read Answer >>
Trading Center