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NewProducts
NewProducts

Boost check acceptance online in real time

stated. Nacha operating rules require WEB Entry origina-
tors to use "commercially reasonable" fraud detection sys-
tems. Beginning March 21, 2021, Nacha will require these
systems to verify that consumer accounts are legitimate
and ready to receive ACH debits.

Nacha's updated rule is intended to help prevent fraudu-
CheckGateway.com enhanced its ICG-Verify tech- lent payments from entering the ACH Network and protect
nology suite, a front-end check verification service merchants and financial institutions from posting fraudu-
designed to reduce errors and losses by validating
i ACH payments, bank accounts and eChecks before lent, incorrect or unauthorized payments. The rule stipu-
lates that Originating Depository Financial Institutions
transactions are processed. By validating transactions in (ODFIs) meet the following criteria:
seconds, the solution can help users improve acceptance
rates and stop invalid transactions before they occur, • Fraud Detection Systems: The Originator has estab-
according to Jason R. Estes, president and CEO at iCheck- lished and implemented a commercially reasonable
Gateway.com. "Instantly verifying a check at transaction fraudulent transaction detection system to screen the
origination gives merchants a powerful tool that can boost debit WEB Entry.
check acceptance rates and improve a company's bottom • Verification of Receiver's Identity: The Originator
line by hedging losses associated with returned items," has established and implemented commercially rea-
Estes said. Estes further noted that ICG-Verify uses the sonable methods of authentication to verify the iden-
most current information available to validate transactions tity of the Receiver of the debit WEB Entry.
and checking accounts and identify accidental and inten-
tional errors. The solution also uses multiple databases to • Verification of Routing Numbers: The Originator
assess check writer history, he added. has established and implemented commercially rea-
sonable procedures to verify that the routing number
Real-time verification used in the debit WEB Entry is valid.

ICG-Verify users can stop invalid transactions from being As ODFIs update systems and procedures to meet Nacha
processed by identifying a range of errors in check and requirements, Receiving Depository Financial Institutions
ACH processing, such as invalid routing number, invalid (RDFIs) and ACH processors may receive more ACH pre-
account number, invalid check number, and negative data notifications, microtransactions and validation requests.
found, the company stated. The solution combines multi- While these measures reduce risk, they potentially increase
layered capabilities within a single, integrated technology costs for WEB debit senders and receivers, iCheckGateway
suite. ICG Basic validates routing numbers. ICG Proprietary representatives stated.
flags invalid transactions using ICG's proprietary negative Partners welcome
database consisting of tens of millions of bad account and
negative items.ICG Real Time identifies real-time account ICG-Verify is part of an extensive suite of solutions offered
status via financial institutions. ICG Negative Data screens by iCheckGateway, a technology provider that helps ISOs,
for potential problems through negative database provid- processors and merchant acquirers deliver leading tech-
ers. ICG Private Bad Check List enables participants to cre- nologies across a wide range of industries, Estes noted.
ate their own private lists. He added that channel partners and clients receive 24/7
support and access to Partner Zone, a secure online por-
By simultaneously leveraging multiple capabilities, Estes tal where they can initiate service requests and track open
noted, ICG-Verify can obtain real-time status responses and cases.
high-risk profiles due to closed accounts, non-transactional
accounts, accounts not located and repeat NSF offenders. "Bundling hosted payment portals into an integrated seam-
The solution also highlights NSF and stop-payment sta- less solution allows our partners to say yes more often," Es-
tuses on individual transactions, and the ICG-Verify suite tes said. "We're focused on enhancing and expanding their
of solutions can be used as a standalone application or offerings and protecting them from merchant attrition."
combined with other processor-agnostic ICG services, he
added. Company: iCheckGateway.com
Stay current with Nacha Product: ICG-Verify

iCheckGateway.com, a preferred Nacha partner, is helping Website: www.icheckgateway.com
organizations and service providers prepare for Nacha's Contact: sales@icheckgateway.com
upcoming rule change for web-based transactions, Estes
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