The regulation was announced in March 2021 by the National Automated Clearing House Association (NACHA) and includes a one-year grace period until March 19, 2022.
At that time, “ACH originators must use account validation as a ‘commercially reasonable fraudulent transaction detection system’ to screen web debits for fraud” on the first use account and account number changes, the company announcement said.
Aliaswire’s BAV solution is supported by NACHA’s Phixius Peer-to-Peer Network, giving users the ability to immediately exchange and verify payment-related information. The network provides a single platform for verification, exchange of payment-related data with standardized APIs, interoperability capabilities, secure payment information exchange and validation across the blockchain and distributed leger tokens.
The Aliaswire solution also confirms payment history, especially when it comes to payment attempts with insufficient funds and the account’s chargeback history. It will also confirm account ownership, matching it to the payment originator as well as the consistency of personally identifiable information, including the payer’s name, address, phone, number and email address.
Customers can access Aliaswire’s BAV solution as a standalone service or as a feature within Aliaswire’s DirectBiller billing and payments platform. DirectBiller allows banks to offer their commercial clients custom-branded billing and payment experiences for their customers.
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“We’re helping our bank partners and their commercial clients speed the flow of payments while also quickly and easily complying with Nacha’s new requirements,” said Jed Rice, CEO of Aliaswire, in the company announcement. “Modern account validation should deliver multiple benefits such as increasing your transaction volumes and improving the user experience while also preventing fraud.”
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In July, Aliaswire, which equips companies and financial institutions with online payment and credit solutions, raised $6 million in funding in a round led by Stage 1 Ventures. Aliaswire said it would use the fresh capital to build a cloud-based digital bill presentment and payment offering and a credit offering for the small business market.
