March 19, 2024

Account Validation: A Best Practice for Safety and Quality

validation podcast PP accelitas

When it comes to account validation, companies have to get it right. From Nacha Rules compliance to risk issues to the customer experience, there’s a lot to consider. 

“We really look at many different types of transactions when we consider account validation as a best practice. There are many different scenarios in which it is important to take any steps possible to make sure that the payment that you are sending—whether that’s pushing the money or pulling money—is received in or from the proper account,” said Amy Morris, Nacha Senior Director, ACH Network Rules.

Interviewed on Nacha’s Payments SmartCast podcast, Morris said that in addition to helping with fraud mitigation, account validation is also considered a best practice for reducing exceptions, because “it goes back to the data quality and the quality of the experience that all participants have in the [ACH] Network.”

Getting it right is crucial for parties on all sides of payment. 

“There’s no one-size-fits-all for a bank account validation solution,” said James Cook, Vice President, Product Management, at Accelitas, a Nacha Preferred Partner for Compliance and Risk and Fraud with a focus on account validation.

“The discussion really comes down to what the nature of their business is. What is the risk they face? What is their tolerance for risk?” said Cook. Accelitas customers, he said, run the spectrum. Some are in “relatively low-risk businesses, where their focus is more on efficiency” to quickly validate a bank account without friction. Others are in higher risk businesses, and Cook said, “They want efficiency, too, but they need to look at a broader solution to help them assess any potential risk associated with the bank account.”

And as times change, so, too, do Accelitas’s solutions.

“Unfortunately, fraud is not going away anytime soon,” said Cook. “We’re really looking to expand our capabilities to help address these new and growing fraud needs in the marketplace.”

Listen to the complete podcast here

Learn more about Accelitas and the Nacha Preferred Partner program.