GIACT and Hudson Cook Break Down NACHA’s New Account Validation Rule

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Businesses using ACH will soon have to comply with a new rule, the WEB Debit Account Validation Rule, related to account validation.

The effort – meant to help combat fraud and protect users – has also been a source of uncertainty. Despite the rule taking effect this month, on March 19, and Nacha taking steps to educate users, the rule is by design “neutral regarding specific methods or technologies,” citing that a “commercially reasonable fraudulent transaction detection system” is required for See more +

Businesses using ACH will soon have to comply with a new rule, the WEB Debit Account Validation Rule, related to account validation.

The effort – meant to help combat fraud and protect users – has also been a source of uncertainty. Despite the rule taking effect this month, on March 19, and Nacha taking steps to educate users, the rule is by design “neutral regarding specific methods or technologies,” citing that a “commercially reasonable fraudulent transaction detection system” is required for compliance. How do they define commercially reasonable? What solutions and processes will help your organization stay in compliance? And does the rule go far enough to reverse the risks associated with faster payments?

To unpack the upcoming rule, dispel some of the misinformation current in the market, and provide some advice for organizations, PaymentsJournal sat down with Melissa Townsley-Solis, Head of GIACT, Katie Hawkins, Associate at Hudson Cook, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group. See less -

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