As part of NACHA’s ongoing evaluation of potential ACH network enhancements, the electronic payments association is seeking corporate practitioners to participate in its Account Validation Industry Survey.
Account validation enables businesses and financial institutions to authenticate the accuracy of various elements of account information received from a consumer or business, and the ability of the account to receive electronic payments. There are five primary models used to validate account information:
- Micro-deposit or trial deposit, in which the account number and the routing number are validated by sending micro-deposits to the account
- Instant account validation, in which the customer provides his online banking login credentials, which are then used to log into the account and validate the customer
- Check verification services, in which a database and/or other proprietary solution is used to validate the accuracy of the account information of a check
- ACH pre-notification entry, in which a non-monetary entry is initiated by the originator to a receiving depository financial institution prior to the initiation of the first credit or debit entry to a receiver’s account
- Debit card authorization, in which a request is sent using the card number provided by the consumer to confirm that the demand deposit account number is attached to the card.
NACHA is requesting feedback from the treasury and finance industry about its current use of account validation services, as well as input on detailed requirements when considering those services for ACH payments.
The survey runs through February 12, 2013. Interested parties can take it here.