This solution helps optimize the member onboarding and application processes by providing real-time bank account validation, improved efficiency, enhanced fraud protection and a seamless experience for consumers, the companies said in a Thursday (June 26) press release emailed to PYMNTS.
“This solution will help eliminate manual processes and further mitigate fraud risk, enabling credit unions to deliver an enhanced member onboarding experience,” Cody Banks, senior vice president for product experience and enablement at Velera, said in the release.
ValidiFI CEO John Gordon said in the release that this partnership will help credit unions better identify fraudulent accounts and reduce the risk of payment failures and ACH returns.
“Powered by our predictive bank account and payment intelligence, Velera is helping credit unions meet Nacha Operating and WEB Debit rules, while significantly reducing the time between account setup and transaction initiation to provide a more seamless member experience,” Gordon said.
Velera announced June 11 that it had debuted a new account validation function, which is available across the company’s online, digital and mobile channels and lets credit unions process payments across the ACH network in real time.
“This enhancement underscores Velera’s commitment to continuous innovation and empowers credit unions with the tools they need to serve today’s digital-centric member,” Banks said at the time in a press release.
The exposure of millions of bank credentials in the recent Coinbase hack highlighted the challenge financial institutions face in validating bank accounts and the holders of those accounts, PYMNTS reported June 4.
Gordon told PYMNTS CEO Karen Webster in an interview posted at that time: “The fraudsters will continue to move and change — and we have to be vigilant about looking for inconsistencies in the data that they provide.”
ACH operator Nacha said in April that it teamed up with ValidiFI to bolster bank account validation on its Phixius payments platform. Nacha said the collaboration is designed to expand the coverage of account validation data for users of the Phixius platform.
