Our team has been in the financial services industry collectively for over 60 years, and one message is clear: “customers need to feel they can trust a company processing a transaction.”
According to Plaid, a San Francisco-based financial services company, ACH (Automated Clearing House) transactions are growing by double digits every year.
We recognize that securing faster payments can be a challenge for originators and consumers, plus it can open the door to fraud.
In an effort to mitigate this, the governing body overseeing the ACH network, Nacha, will implement a new account validation rule on March 19, 2021.
Requirements to be aware of with the Nacha rule change:
- A commercially-reasonable fraudulent transaction detection system must be implemented
- Account validation must happen at first use and anytime customers update account information
- Any payment originator who processes web debits will need to meet the new requirements
- The extended same-day ACH process window will go into effect
Specific use cases that may be impacted by the Nacha rule change:
- Online payments
- Contributions to 401k’s
- Installment loans (credit, car loans, mortgages)
- Point of sale purchases
We recognize the urgent need for effective account validation considering the growth of ACH payments, the current practice of social distancing and the need to digitize payments. Razorvision’s team of specialists can offer a hand with these and other upcoming hurdles.