HIGH POINT, N.C., August 3, 2021 – Advanced Fraud Solutions (AFS), a leading provider of deposit fraud detection software, today announced TrueACH® with Account Validation – a new ACH tool that enables financial institutions to confirm account status and authorized user(s). TrueACH with Account Validation was developed in response to Nacha’s WEB Debit Account Validation Rule. The rule requires financial institutions to apply a “commercially reasonable fraud detection system” to validate that an account is open and accepts ACH entries.
TrueACH with Account Validation triangulates ACH account information against Advanced Fraud Solutions’ industry-leading cooperative database. With TrueACH with Account Validation, financial institutions receive real-time responses on if the account exists and is in good standing; if the account is returning transactions; if the account is closed, non-sufficient funds (NSF), or at high-risk status; when the account has a stop-payment; and if the person is authorized to transact on the account.
ACH has become a universal method of payment. Banks and credit unions need a solution that will help them achieve compliance. FIs also need to make faster payments safer and less prone to fraud. TrueACH with Account Validation was built to not only meet the demands of Nacha’s WEB Debit Account Validation Rule, but also with an eye towards reducing both fraud and friction.Ted Kirk, VP of Strategic Partnerships, AFS
TrueACH with Account Validation exceeds compliance requirements and improves and user experience
“ACH has become a universal method of payment. Banks and credit unions need a solution that will help them achieve compliance as well as make faster payments safer and less prone to fraud,” said Ted Kirk, VP of Strategic Partnerships. “TrueACH with Account Validation was built to not only meet the demands of Nacha’s WEB Debit Account Validation Rule, but also with an eye towards reducing both fraud and friction.”
In addition to achieving account validation compliance, TrueACH with Account Validation also improves ACH user experience. TrueACH with Account Validation allows financial institutions to provide faster funds availability and faster checking-to-checking and checking-to-savings transactions. It also reduces ACH payments risk and potential ACH-related fraud losses.
Nacha’s WEB Debit Account Validation Rule came into effect on March 19, 2021. Those impacted by the rule will have a year from the effective date to work in “good faith toward compliance” before the rule is enforced, according to Nacha.
To learn more about TrueACH with Account Validation, click here.
About Advanced Fraud Solutions
Advanced Fraud Solutions was founded in 2007 with the simple mission to help financial institutions prevent fraud in real-time by utilizing our comprehensive private cloud-based software solutions at the frontline and in the back office. Every day, our innovative fraud prevention tools help banks and credit unions of all sizes eliminate losses and safeguard their financial assets, providing the level of protection that today’s customers demand. At Advanced Fraud Solutions, we know the best way to fight fraud is to prevent it.
Learn more at Advanced Fraud Solutions.