There are many ways to verify online Automated Clearing House (ACH) payment details for transfers. Voided checks, micro deposits, pre-validations and account scores all validate ACH account payment details in one form or another. They also take more time than is necessary and typically can only verify something rather than adding key data to what the consumer has provided.
This is where open banking and open banking platforms make verifying account details and speeding up the ACH payment process simpler for everyone. Consumer-permissioned data pulled straight from bank accounts makes verifying accounts simple. It can also provide account details like account owner or balances that make facilitating payments easier and less risky for both sides of the transaction.
Finicity’s open banking platform provides a complete suite of data services with Finicity Pay™ to verify essential account details, owners, and balances that are needed to charge, get paid, or set up an account with confidence. Finicity Pay enables payments and validates funding sources. You can also seamlessly verify loan account details, including student loans, to detect eligibility for refinancing, loan consolidation, or to support employer student loan repayment and other benefit programs.
This means that Finicity Pay both satisfies Nacha’s WEB Debit Rule but also speeds up the ACH payment validation process and enhances fraud protection. Finicity is a Nacha Preferred Partner, recognized for offering products and services that align with Nacha’s core strategies to advance the ACH Network.
Finicity’s instant verification solution takes advantage of Finicity’s open banking platform to use API connections to the many financial institutions in the US and Canada. Consumers permission the use of their account details which are then used for approved ACH payments, account creation or other permissible uses. The consumer can complete the verification process in minutes rather than waiting hours or days as in other solutions. Meaning their ACH transfer can process more quickly or they can get funds right into their new account.
Other ACH validation solutions either don’t provide the option for as much key data, only factor in account and routing number, or take much longer, up to a week in some cases. You may remember the days when you needed to provide a voided check to set up direct deposit transactions. Or to set up online accounts that are connected to your existing checking account you had to respond with how much was deposited into that checking account. There’s also pre-validating by providing information that is verified before the ACH transfer happens, which can take up to a week. Those days are over, thanks to Finicity Pay.
Some digital solutions are available but are limited either by what they provide, a score or likely probability that the account is good or has funds enough to cover the transaction, or only cover certain segments of the industry, as in providing details for accounts from certain FIs but not the industry as a whole.
Finicity’s instant verification can not only validate account details but can also provide account owner and account balance details to further mitigate risk and make ACH transfers easier.