Table of Contents:
- What is ACH check verification?
- Why is it necessary?
- New NACHA rule requiring checking account validation for website payments
- Mitigating onboarding risk
- Credit card authorization vs ACH verification
- Functions of ACH Verification
- Automated Routing Number Check
- Negative Database Options
- Real-time Inquiries into Current Checking Account Status
- Checking Account Balance Inquiries
- Case Study
- Payment Rejects
- Issues to Address
- Third Party Services
- Pricing information
- Additional Checking Account Verification Resources
Businesses can significantly reduce payment acceptance risk with electronic check verification tools by performing real-time validation of a customer’s bank account, ensuring that the account is active with a positive funds status.
**Important Mandated Checking Account Validation Changes: Detailed info here
Beginning March 2021, NACHA will implement a new rule that mandates enhanced checking account verification measures.
Businesses that debit payments via ACH for online or web based orders are required to implement enhanced fraud detection to comply with the new NACHA web debit account validation mandate.
Specifically, the organization will require such businesses to include, at a minimum, Checking Account Validation as part of a “commercially reasonable fraudulent transaction detection system.”