iCheckGateway.com enhanced its ICG-Verify technology suite, a front-end check verification service designed to reduce errors and losses by validating ACH payments, bank accounts and eChecks before transactions are processed. By validating transactions in seconds, the solution can help users improve acceptance rates and stop invalid transactions before they occur, according to Jason R. Estes, president and CEO at iCheckGateway.com.
"Instantly verifying a check at transaction origination gives merchants a powerful tool that can boost check acceptance rates and improve a company's bottom line by hedging losses associated with returned items," Estes said. Estes further noted that ICG-Verify uses the most current information available to validate transactions and checking accounts and identify accidental and intentional errors. The solution also uses multiple databases to assess check writer history, he added.
ICG-Verify users can stop invalid transactions from being processed by identifying a range of errors in check and ACH processing, such as invalid routing number, invalid account number, invalid check number, and negative data found, the company stated. The solution combines multilayered capabilities within a single, integrated technology suite. ICG Basic validates routing numbers. ICG Proprietary flags invalid transactions using ICG's proprietary negative database consisting of tens of millions of bad account and negative items.ICG Real Time identifies real-time account status via financial institutions. ICG Negative Data screens for potential problems through negative database providers. ICG Private Bad Check List enables participants to create their own private lists.
By simultaneously leveraging multiple capabilities, Estes noted, ICG-Verify can obtain real-time status responses and high-risk profiles due to closed accounts, non-transactional accounts, accounts not located and repeat NSF offenders. The solution also highlights NSF and stop-payment statuses on individual transactions, and the ICG-Verify suite of solutions can be used as a standalone application or combined with other processor-agnostic ICG services, he added.
iCheckGateway.com, a preferred Nacha partner, is helping organizations and service providers prepare for Nacha's upcoming rule change for web-based transactions, Estes stated. Nacha operating rules require WEB Entry originators to use "commercially reasonable" fraud detection systems. 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 fraudulent payments from entering the ACH Network and protect merchants and financial institutions from posting fraudulent, incorrect or unauthorized payments. The rule stipulates that Originating Depository Financial Institutions (ODFIs) meet the following criteria:
As ODFIs update systems and procedures to meet Nacha requirements, Receiving Depository Financial Institutions (RDFIs) and ACH processors may receive more ACH pre-notifications, microtransactions and validation requests. While these measures reduce risk, they potentially increase costs for WEB debit senders and receivers, iCheckGateway representatives stated.
ICG-Verify is part of an extensive suite of solutions offered by iCheckGateway, a technology provider that helps ISOs, processors and merchant acquirers deliver leading technologies across a wide range of industries, Estes noted. He added that channel partners and clients receive 24/7 support and access to Partner Zone, a secure online portal where they can initiate service requests and track open cases.
"Bundling hosted payment portals into an integrated seamless solution allows our partners to say yes more often," Estes said. "We're focused on enhancing and expanding their offerings and protecting them from merchant attrition."
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