NACHA Regulation for Bank Account Fraud Verifications
Whatever it is, we’ve got your back.
A new rule is going into effect from NACHA, (National Automated Clearing House Association) regarding the authorization of online payments. The rule states: “ACH Originators of WEB debit entries are required to use a “commercially reasonable fraudulent transaction detection system” to screen WEB debits for fraud.” This is saying that an additional step will need to be taken in order to “validate” an account. This is being done in an effort to combat fraud in online payments.
This rule went into effect March 19th, 2021, but it was also added: “Nacha will not enforce this rule for an additional period of one year from the effective date with respect to covered entities that are working in good faith toward compliance, but that require additional time to implement solutions.” At LoanPro we want to help however we can and are currently searching for the best partner to provide verification at the right price and are confident our search will be completed far before the end of the grace period of one year.
How does it affect you?
As a lender, you will be responsible for meeting these new requirements and you either already have, or you will need to be working in good faith toward compliance by the grace period deadline of one year. We know changes in requirements can be difficult and time consuming and this is why LoanPro is currently searching for the best partner that will provide verification at the right price.
At LoanPro, we know a lot of lenders are lacking a way to meet the new requirements. We are working as a team to find the right vendor and smooth out the details in validating payment accounts. We are working in good faith to find the best possible solution for you to become compliant. We look forward to our partnership with you and the role we play in helping you WIN.