MDT is a CUSO (Credit Union Service Organisation) that hosts the Episys core processing system from Symitar to provide a private cloud alternative for core processing and IT needs. As a result of the partnership with AFS, MDT will be adding TrueACH with Account Validation and TrueCards to its suite of complementary solutions. These tools will reportedly help credit unions minimise the risk of fraud and help comply with Nacha standards.
TrueACH with Account Validation is designed to assist credit unions in complying with Nacha’s WEB Debit Account Validation Rule. The rule, which will be officially enforced on 19 March 2022, mandates ACH originators to validate accounts for ACH WEB transactions. By leveraging TrueACH with Account Validation, MDT’s credit union clients will be able to confirm the account status and account owner or authorised user(s) more easily on an account. By offering this as well as TrueCards, an omnichannel credit and debit card fraud prevention solution, MDT will help its credit union clients minimise the risk of trending fraud schemes such as account takeover, application fraud, and transaction fraud, the official press release states.
TrueACH with Account Validation triangulates ACH account information against AFS’ cooperative database. With the solution, MDT’s clients can 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 authorised to transact on the account.
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