How Much Do Identity Verification Services Cost?

With AI-generated IDs on the rise and growing identity fraud attempts, it can almost feel impossible to have any peace of mind throughout the leasing process. But there are strategies to help you streamline the process and increase security.

One of those strategies? Building robust identity verification into your tenant screening process. While tenant screening is non-negotiable, it can be time-consuming, but you can speed up the process and improve accuracy with an automated identity verification service.

Like with anything else, identity verification services aren’t free. But they just might be worth the cost. We’re breaking down identity verification pricing, including tiered options, so you can budget for this truly vital element of any complete tenant screening process.

Average Identity Verification Cost

Whether you get all the bells and whistles or opt for more of a base model will change how much you pay for identity verification services, but the average range typically falls between $0.50 and $2 per transaction.

On top of the per-transaction fee, some identity verification providers charge a monthly or annual subscription. So, while you could pay $500 for 1,000 verifications at $0.50 each, you’ll likely pay additional fees that raise the price tag.

Another consideration? Many identity verification companies define what constitutes a transaction differently. Some qualify each document as its own transaction while others might count an entire application as one transaction.

Pro tip: Make sure you review and understand the fine details of each provider’s pricing and how their definitions of “transaction” will impact your rate.

Factors Influencing the Cost of Identity Verification Services

Identity verification pricing isn’t one-size-fits-all and varies wildly based on the transaction, verification types, product features, and customizations. 

Volume of Verifications

As a general rule of thumb, as verification volume increases, the price of each one decreases. If you’re a high-volume customer, you might receive bulk discounts. But if you’re an occasional user with less frequent verifications, you’ll likely pay a higher per-transaction fee.

Another option you’ll see is subscription-based pricing. This pricing model has several service tiers, with higher tiers being a pricier option with more features—and lower per-transaction fees. 

Types of Documents Verified

Identity verification companies validate all types of documents, from passports to driver’s licenses and everything in between. But some documents are harder to authenticate than others.

Verifying a government-issued ID with a photograph isn’t too complicated. But less standardized documents without photos—like a pay stub or utility bills—can be a challenge to verify. 

Certain verifications require more advanced technology. While using optical character recognition (OCR) to read and validate a driver’s license is standard, more sophisticated methods, like machine readable zones (MRZ) on a passport, are more intensive—and costly. 

Level of Verification 

At the most basic level, identity verification confirms a document’s authenticity with document scanning and OCR. But a more comprehensive check confirms the documents actually match the person presenting them. 

This in-depth examination calls for advanced analysis through biometric checks and extensive database cross-referencing to catch synthetic identity fraud. Because these services are more complex and resource-intensive, they tend to be more expensive.

Service Features

An identity verification service does more than validate identities and documents—it provides a suite of features to support identity verification end to end: 

• Liveness detection confirms that biometric data, like a face or fingerprint, come from a real, authentic person—not a photograph.
  

• Automated fraud alerts notify you immediately via email or text if an applicant’s documents could be fake. Some providers even offer ongoing fraud detection to flag if a current resident is potentially engaging in fraudulent activity.
  

• Compliance tools offer reporting templates to help you report identity fraud and handle discrimination allegations.

Integrations and Customization

Identity verification is more efficient when it works seamlessly with your other screening services and property management software. Integrations eliminate duplicate work and increase reliability across your systems. But keep in mind that this comes at an additional expense.

If you want integrations and other custom features to meet your specific business needs, you’ll have to pay for them. The more customization you request, the higher the price.

For example, if you want applicants to submit documents on a branded page, your provider may edit their user interface to match your company’s look and feel.

Provider Reputation and Reliability

Some identity verification companies have built a strong reputation for accuracy and reliability—and they’ve adjusted their pricing accordingly. Industry awards and high ratings from platforms like Gartner set a provider apart from the competition.

The result? Higher rates. Especially if an ID verification provider follows numerous security standards and regulations. They can—and do—charge a premium for their compliance with these standards.

For example, a SOC 2-certified provider that complies with data privacy regulations, like GDPR and CCPA, will ask for higher prices. 

Typical Identity Verification Pricing Models

Identity verification pricing usually falls into three different buckets:

• Per-transaction
• Subscription-based
• Pay-as-you-go

Each has its pros and cons, but which one works best for you depends on your needs and budget.

Per-Transaction Costs

With the per-transaction model, you pay a credit upfront for a set number of transactions each month or year, like $1,000 for 100 transactions. 

Some providers charge an additional base fee, while others require a minimum transaction commitment. As you use transactions, your provider deducts them from your monthly or annual total. 

This model typically works well for smaller businesses with a steady volume of verifications that don’t require many extras. 

Monthly or Annual Subscription Plans

Also known as flat-rate licensing, monthly or annual subscription plans charge for the number of users (sometimes called “seats”). 

In this model, the number of verifications doesn’t factor into the pricing, but there’s usually a monthly limit. If you have a high volume of verifications but not many users, this plan might work well. 

Pay-as-You-Go Options

With a pay-as-you-go model, you only pay for the verifications you submit. You typically pay upfront for a set number of monthly transactions. And if you exceed that limit, you pay for each transaction at a set rate.

As with other models, higher transaction volumes usually cost less per transaction. 

Because the pricing is flexible, pay-as-you-go options are great for occasional identity verification, but the per-transaction costs are higher. 

Enterprise-Level Pricing

At the enterprise level, pricing is typically customized. It works best for large property management companies with high verification volumes and complex needs. 

Enterprise-level services tailor offerings to your business to create a bespoke quote. The total cost will factor in customizations, integrations, and advanced features, like advanced analytics.

And you can expect extra benefits, like dedicated onboarding help and priority customer support when you’re an enterprise-level customer.

Additional Costs to Consider

Identity verification pricing isn’t just about subscriptions or transactions. Several other expenses can come into play, both upfront and over time. The overall price you pay will vary across providers, so always ask for a detailed quote and read the fine print. 

Setup and Integration Fees

Need extra support implementing and integrating with a provider? You’ll probably need to pay some initial setup fees. This added technical support can streamline rolling out the new service and getting you up and running quickly, so it’s often worth the investment.

Training Costs

To get the most out of your identity verification service, train your team on how to use it effectively, including: 

• Setting up their account and logging in
• Submitting verification requests
• Reviewing results 
• Complying with data privacy and fair housing laws

While essential, setting aside time to train employees can add up. Factor training time into your budget. Or consider using the continuing education and training some providers offer as part of their service, either as part of your subscription or as an add-on.

Compliance Costs

Pick a compliant identity verification provider, and you’re set, right? Not exactly. You have to do continual check-ups to make sure your tenant screening process adheres to compliance and data protection laws, like GDPR and CCPA.

You may also want to hire an external cybersecurity or legal team to perform a compliance audit. 

Support and Maintenance Fees

Looking for quick responses to questions? Consider a premium subscription to receive priority support. The higher the subscription tier, the better service you’ll receive—enterprise clients might get a dedicated account manager or support team to resolve issues quickly. 

The best identity verification providers are constantly on the lookout for new fraud tactics. They regularly update their software to catch the latest scams while prioritizing compliance. The only downside is that these upgrades might require some website downtime, which can create some operational costs. 

Benefits vs. Costs: Is it Worth it?

Subscriptions. Transactions. Integrations. Customizations. Advanced verification. It feels like all the expenses add up quickly—but is identity verification really worth it? A few considerations make the cost-benefit analysis clear. 

Return on Investment

Identity verification pricing might seem steep at first, but the costs of rental application fraud and bad tenants are even higher:

• Evictions and legal fees
• Lost income from missed rent payments
• Property damage

Identity verification is one of the most crucial steps in catching fraud before it hurts your business, so the money saved by avoiding bad tenants pays off with a quick, reliable, and accurate provider.  

And any identity verification service that reduces your time spent manually reviewing documents through automation is worth its weight in gold.

Scalability

Businesses grow and change—including yours. Your ID verification provider should grow with you.

Do the upfront research to find an identity verification service that will evolve with your business and save you the hassle of having to switch when you outgrow them.

Pro tip: Find an identity verification provider that uses strategies like fraud forensics to monitor and adapt to your ever-changing business needs and the threat landscape.

Reputation

Your brand reputation is one of your most valuable assets. Using a secure, reliable verification service creates transparency, which builds trust with tenants—and regulatory agencies. 

Using a reputable provider also sets a professional tone and shows that you take compliance seriously.  

A third-party service can handle the complexity of identity verification quickly, accurately, and fairly—taking handling sensitive personal data off your plate. 

Plus, most providers have built-in compliance features like applicant-agnostic verification and data security protocols to help you comply with tenant screening laws and build trust with applicants.

How to Choose the Right Service Within Your Budget

Identity verification services can save you the cost of compliance lapses and bad tenants. But how do you find one within your budget? 

Start by understanding what you need from an identity verification service to set selection criteria. Then, look for lists of the best identity verification providers to make a list of possibilities. 

Research, evaluate, and test out each before choosing, and always read the fine print before committing.

Assess Your Needs

Begin by evaluating your identity verification requirements. Start by asking yourself these key questions: 

• How many applications do you process each month?
• How many documents do you need to verify for each application?
• What kinds of documents are you verifying? What level of verification do you need?
• Do you want upgrades like liveness detection?
• How many users on your team will need access to the identity verification tool?
• Will you need custom solutions or integrations with other tools? 

These questions should help you identify what matters most and how robust your ID verification needs are—if you only process a few applications every month, you don’t need an enterprise solution.

Compare Providers

Once you’ve assessed your needs, write out a list of criteria, including

• Pricing models. Is the service per transaction, pay-as-you-go, or subscription-based? What’s the price per verification?
• Features. Does the provider offer the capabilities you’re looking for, like compliance tools
• Customer reviews. What do customers say about the provider? Do reputable sources (like Gartner) rank them well? 

There’s no shortage of ID verification companies, so search online for lists of top providers. Explore each one’s website, read reviews, and score them based on your criteria to generate a short list of top contenders. 

Request Quotes

Identity verification pricing models can be complex, and with add-ons or customizations, the pricing page may not give you the full picture. Reach out to the providers on your shortlist and request a detailed cost breakdown. 

Ask how they define a transaction and about additional fees that may not appear on their website. Combine this information with their quote to directly compare monthly costs with other providers. 

Test Before Committing

It’s not uncommon for service providers to offer a live product demo when you request a quote. Use this time to ask more questions about pricing and capabilities. But if you don’t get a one-on-one demo, look at their website—many providers host video versions online. 

Give every tool a test run before making a decision. Ask for a free trial to get a hands-on feel for whether the service works well for you. 

If you’re looking for customizations or integrations, the provider may even offer a sandbox environment for a more technical assessment. 

The Cost of Identity Verification Services is Worth the Investment

Paying a premium for high-quality identity verification is well worth the investment. It’s a crucial part of a multi-layer fraud detection strategy to reduce risk. And a stellar identity verification service builds a positive reputation while helping you catch tenant scams before they hurt your business. 

During your selection process, think long-term when weighing quality vs. cost. A quality provider increases accuracy and saves time with each application. In the long run, these efficiency gains and enhanced reputation will pay for themselves several times over. 

Looking for an identity verification provider? Start with our guide to the best tenant screening services, then do a deep dive with Gartner’s top-rated identity verification providers.