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SPS is pleased to announce remarkable new enhancements to its internal ACH Processing gateway to allow merchants to process higher risk ACH transactions and thereby avoid many of the NACHA related issues they are faced with.
What problems do high risk ACH merchants face?
Originating Depository Financial Institutions (ODFI's) face financial penalties that often include shutting down of ACH processing when it becomes clear that they do not have a process in place to monitor and shut down ACH aggregators (indirect merchant relationships of the bank) or direct merchant depositors whose unauthorized returns exceed 1% of the total number of items originated.
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What is our solution?
- We ask for the merchant's "order" file and email the customer with a proprietary password that is associated with that order and the anonymous credit amount described below.
- To verify access of the customer to the bank account being used for the debit we take a page out of the PayPal account verification notebook by crediting the customer's bank account with an undisclosed amount (the merchant is not aware of this amount).
- We ask the customer to log in to a new SPS web page to both "confirm" and "authorize" the transaction by entering the unique password and exact amount credited to their bank account. A successful "confirmation" where both the password and credit amount match perfectly still requires that the customer "authorize" the debit. Failure to successfully confirm and / or authorize will negate the transaction after multiple failed attempts or 7 business days, whichever occurs earlier.
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- The email (fig 1) contains specific information regarding the purchase to remind the customer of the merchant's business name, the amount(s), and timing. We will additionally provide the customer with a unique password for use during a subsequent payment confirmation process that is required to finalize the transaction. For their protection and to confirm account validity, the email advises the customer that a small amount (generally less than 30 cents) will be credited to their bank account.
fig 1 - Customer Email
- The customer must access www.securepaymentsystems.com/confirm (fig 2), the SPS payment confirmation web site page, and along with the amount credited, enter the unique password to "confirm" and ultimately "authorize" the transaction.
- Failure to properly confirm the credit amount and enter the password correctly within 10 business days following the email will negate the purchase.
- Failure to properly confirm the exact credit amount (by using the proper password) after 3 failed attempts will negate the purchase.
- Failure to "Agree" to a short description of the merchant terms, despite a proper confirmation will not allow the customer to finalize the purchase.
fig 2 - Confirmation Screen
- SPS will report to the merchant on a daily basis all confirmations so that the goods or services may be delivered and, as a result, SPS will originate the debits (even those that are recurring) without further notice.
- ACH returns will be reported to the merchant on a daily basis
- Regardless of the return reason, future debits will be suspended on that customer's given bank account.
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fig 3 - Congratulations Screen
We are very excited about the opportunity of this process to significantly reduce the "unauthorized" debit percentage to a NACHA permissible level and be able to accept a wide range of ACH activities. Please contact SPS at 1-888-313-7842 for further information.
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