Account Validation and Risk Management

Bank account validation

Online ACH payments for bill payment and purchases require the validation of the bank account information for hand entered transactions. Secure Payment Systems developed a “waterfall” strategy with the largest database providers (Early Warning, TeleCheck and MicroBilt) to get the most accurate answer, reduce administrative returns and accept as many payments with the least amount of risk for the lowest possible cost. Administrative Returns are not returned because of a lack of funds.  The most common Administrative return is not finding the bank account, generally because the consumer or business made a mistake entering the bank routing and account number.  Bank Account Validation identifies these mistakes and can prompt the consumer to re-enter the information correctly.

Risk management

When the multiple database inquiries are positive, but there is no existing history for the account, the Risk Management Systems step in to insure the highest probability of the transaction clearing. Government or Utility payments require an entirely different strategy from selling products online. SPS’s 22 years of experience in providing check warranty to brick and mortar retailers provides a proven technology base to manage online payments.

Reduce processing costs

The National Association Automated Clearing House (NACHA) requires constant monitoring of Unauthorized Returns, a subset of Administrative Returns, that have much higher fees and can lead to merchant cancellations if they are excessive. SPS manages a database of these Unauthorized Returns to protect your banking relationships and reduce processing costs.



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What is the best risk management solution for your business? 
  • Define your risk factors.
  • Online risk versus customer present.
  • Which databases do I need?


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