Advanced Fraud Solutions announces new account validation tool

Tuesday 3 August 2021 12:50 CET | News

US-based payments fraud detection provider Advanced Fraud Solutions (AFS) has rolled out TrueACH with Account Validation.

The new ACH tool enables financial institutions to confirm account status and authorised user(s). TrueACH with Account Validation was developed in response to Nacha's WEB Debit Account Validation Rule, which 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' 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, nonsufficient funds (NSF), or at high-risk status; if the account has a stop-payment; and if the person is authorised to transact on the account. 

Nacha's WEB Debit Account Validation Rule came into effect on 19 March 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. 

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Keywords: product launch, ACH, instant payments, Account fraud, fraud prevention
Categories: Fraud & Financial Crime
Countries: United States
This article is part of category

Fraud & Financial Crime

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