Prior to initiating an electronic credit or debit payment, a client using Account Validation, can verify the status of an account and authenticate the account owner. Account Validation is supported by Early Warning Services (EWS), a fintech company that provides identity, risk, and payment solutions to financial institutions.
Companies can use the service prior to making payments to consumers via ACH, wire transfer, or a real-time payment. Additionally, Account Validation could help companies to comply with the NACHA WEB Debit Account Validation rule.
Account Validation also assists in helping prevent misdirected payments, which occur when a payee inadvertently provides an incorrect account number.
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