ACH Check Verification
2.1 هزار بار بازدید -
6 سال پیش
-
ACH Check Verification allows merchants
ACH Check Verification allows merchants to mitigate check acceptance risk at the point of sale, online or in person. Checking account verification options range from automated routing number check to negative database options to near real-time inquiries into current checking account status, and checking account balance inquiries (which require the customer to either log-in or provide credentials to their online banking system).
Businesses can significantly reduce payment acceptance risk with check verification tools by performing real-time validation of a customer’s bank account, ensuring that the account is active with a positive funds status.
Unlike credit cards, the ACH realm lacks an authorization component. Credit cards allow for authorization at the time of payment, ensuring that a customer has the requisite funds on their cards, and reserving those funds for capture and settlement.
For some businesses this lack of an authorization means that ACH Check Verification is necessary to mitigate payment acceptance risk, and prevent your newly onboarded customer from needing to perform a significant amount of work to obtain correct or valid checking account information.
Checking Account Verification Services
Payment rejects are typically discovered only after payment is accepted, sometimes days later. A system to check that a bank account is valid can be invaluable for businesses that operate with a recurring payment model. When payment rejection occurs the business has multiple issues to address:
The commission payment may need to be pulled back
That customer must be contacted for payment
Accounting may need to be undone.
For businesses that accept checks either as an ACH, Check 21 or Remote Deposit all face the risk that the payment will result in a return [failed transaction].
Mitigating loss through third party check verification services can be an important part of the business that relies on ACH processing for check acceptance. So how does a business reduce check acceptance risk?
ACH Check Verification Services
Bank routing numbers identify the bank that a check is drawn against, and the databases holding this information can be checked in real time. Negative databases (comprised of the positive/negative history of that checking accounts info) exist a means of protection for businesses. For example, Walmart can report on whether a check is good or bad to the database. A plethora of retailers contribute data to the network, meaning there are millions of checking accounts to reference. Recency is an issue because a customer’s last instance of writing a check at a participating retailer becomes the last data point.
Businesses can significantly reduce payment acceptance risk with check verification tools by performing real-time validation of a customer’s bank account, ensuring that the account is active with a positive funds status.
Unlike credit cards, the ACH realm lacks an authorization component. Credit cards allow for authorization at the time of payment, ensuring that a customer has the requisite funds on their cards, and reserving those funds for capture and settlement.
For some businesses this lack of an authorization means that ACH Check Verification is necessary to mitigate payment acceptance risk, and prevent your newly onboarded customer from needing to perform a significant amount of work to obtain correct or valid checking account information.
Checking Account Verification Services
Payment rejects are typically discovered only after payment is accepted, sometimes days later. A system to check that a bank account is valid can be invaluable for businesses that operate with a recurring payment model. When payment rejection occurs the business has multiple issues to address:
The commission payment may need to be pulled back
That customer must be contacted for payment
Accounting may need to be undone.
For businesses that accept checks either as an ACH, Check 21 or Remote Deposit all face the risk that the payment will result in a return [failed transaction].
Mitigating loss through third party check verification services can be an important part of the business that relies on ACH processing for check acceptance. So how does a business reduce check acceptance risk?
ACH Check Verification Services
Bank routing numbers identify the bank that a check is drawn against, and the databases holding this information can be checked in real time. Negative databases (comprised of the positive/negative history of that checking accounts info) exist a means of protection for businesses. For example, Walmart can report on whether a check is good or bad to the database. A plethora of retailers contribute data to the network, meaning there are millions of checking accounts to reference. Recency is an issue because a customer’s last instance of writing a check at a participating retailer becomes the last data point.
6 سال پیش
در تاریخ 1397/09/28 منتشر شده
است.
2,193
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