Accelitas joins Nacha to analyze the ACH landscape
Anyone doing business online knows it’s a balancing act. Consumers and vendors demand security at the same time they expect a seamless transaction experience. Looking to explore both the challenges and opportunities of the new dynamic, Nacha invited Accelitas to its “Payments SmartCast,” a recurring podcast focused on issues of interest to the payments community.
Hosted by Nacha’s Dan Roth, the podcast featured Accelitas Vice President of Product Management James Cook, who was joined by Amy Morris, Senior Director, ACH Network Rules at Nacha in breaking down the rules for account validation, what ACH participants need to be aware of, and what they might expect in the coming year.
Risk management meets processing efficiency
According to Morris, the crucial duty of the ACH Network remains risk management, a process that’s continuously evolving. But in pursuing best practices, user experience has become a major consideration. “The quality experience starts with both parties being able to pay or be paid in the manner they desire,” said Morris. “The merchants/payees care about processing efficiently, moving on to their other obligations, and not having to think about payments anymore. The bill payers want to have their bill paid simply and know when it’s coming out of their account.”
Here's where data analytics comes in
For Accelitas, these evolving needs have driven the growth of fintech solutions. “We’re a data analytics company, leveraging machine learning with alternative data sources,” Cook explained on the podcast. “We develop innovative solutions for our customers to assess various levels of risk in order to deliver true financial inclusion.”
Cook said discussion comes down to the nature of their business; what risks do they face and what is their tolerance for risk? “We have customers working in relatively low risk businesses where their focus is more on efficiency. Can I validate this bank account in a fast, accurate manner, with no friction for my consumer? Does the cost align with the risk I face? They want to avoid different levels of admin returns.”
Added Morris: “We’ve talked a lot about how account validation assists us in fraud mitigation, but it is also considered a best practice simply for reducing ACH exceptions. Because that again goes back to the quality of the experience that all participants have in the network, including originators. They want to have that payment over and done with, and be able to move on with their true business. Reducing exceptions is very key to that.”
Tailoring the validation experience
As the ACH space seeks to balance transaction security and seamless customer experience, it’s become evident that one size does not fit all in validation services. Cook said Accelitas works with “a number of different ACH participants that have all kinds of use cases that extend beyond just web debit.” ACH participants are interested in preventing fraud as well as improving overall efficiencies, he noted, and Accelitas has developed a suite of different solutions that help match the right service for the right use case. The company also plans to invest in and expand its intelligence around bank data.
Listen to this episode of the Nacha Payments Smartcast here.
Accelitas is a Nacha Preferred Partner.
