Important Information Regarding ACH Processing

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At Secure Payment Systems ("SPS"), our staff continuously monitors regulations and changes in the payment system that could affect your ability to process a WEB based ACH transaction.

What is changing? A new "rule" has been passed by NACHA, the national governing body of electronic ACH payments, that will be implemented effective January 1, 2020 which will require account validation of 1st time customer transactions from any of our clients that are originating "WEB" based ACH payments.

Why is NACHA concerned? NACHA's objective is to ensure that online ecommerce clients try to confirm a customer's account legitimacy prior to or concurrently with origination of an electronic debit through a commercially available database of known accounts so as to reduce the number of administrative errors in the ACH network.

According to the NACHA website www.nacha.org/rules/supplementing-fraud-detection-standards-web-debits,

ACH Originators of WEB debit entries are required to use a "commercially reasonable fraudulent transaction detection system" to screen WEB debits for fraud. This existing screening requirement will be supplemented to make it explicit that "account validation" is part of a "commercially reasonable fraudulent transaction detection system." The supplemental requirement applies to the first use of an account number, or changes to the account number"

What does this mean for you?

SPS already accesses internal and external databases that meet or exceed the requirements outlined by NACHA as well as having the capability to validate account information via other account verification tools. We will ensure you stay in compliance with this rule without requiring any changes to your existing transaction data.

If additional costs occur as a result of accessing a third-party database, SPS will notify you well in advance of the January 1 deadline so that together we can review the range of options available to you.

We thank you for your business and look forward to continuing to provide you with world class processing solutions.

If you have any questions or need any additional information, please contact Secure Payment Systems at 888-313-7841 or email us or sales@securepaymentsytems.com

About Secure Payment Systems (www.securepaymentsystems.com)

Founded in 1996 and headquartered in Las Vegas, NV Secure Payment Systems ("SPS") provides fully redundant payment processing solutions to over 10,000 retail, lending, wholesale, and corporate endpoints across North America. SPS facilitates the transfer of value by providing businesses with a full range of transaction processing, reporting, and risk management tools so they may quickly and confidently accept payments, pay vendors, or transfer funds at the POS or on the WEB. These solutions include underwriting and guaranteeing eCheck transaction risk, deferred payment programs allowing consumers to stretch retail purchases up to 18 months, automated origination of recurring & one-time ACH debits and credits, electronic remote check imaging & deposit, gift & loyalty card processing, as well as internal and external third party database verification access for a complete POS risk management solution.