NACHA Account Validation Rules Going Into Effect Soon

National Automated Clearing House Association (NACHA) has issued fraud detection rules for ACH payment processing that will go into effect in March 2022. The rule requires everyone using WEB Debits (any ACH debit payment that is authorized online) to validate the consumer’s account information before accepting the first payment made.

With increased use of ACH and other non-cash payments, NACHA is hoping that the rule will tighten security of online activity up by adding another layer of verification.

These rules tie directly to the Fraud Detection Standards for WEB Debits that NACHA rolled out in March 2021, and will start being enforced across the payment industry in March 2022. The standards state that ACH Originators of WEB debit entries must use a “commercially reasonable fraudulent transaction detection system” to screen WEB debits for fraud.

This existing screening requirement is being supplemented to make it explicit that “account validation” is part of a “commercially reasonable fraudulent transaction detection system.”

These changes were announced in 2021 and you’ve had a year to get your systems compliant with new standards. It’s important to ensure that you’re ready for the rules to go into effect in March, and we are here to support you.

Nelnet Campus Commerce has payment processing solutions that are compliant with these rules. We have security teams closely watching this and have made updates to our payment solutions to ensure we’re compliant.

We’ve partnered with Giact , a preferred validation partner of NACHA. Giact provides real-time validation at the time a bank account is provided for payment. This allows Nelnet to process payments for you immediately without introducing friction into the Nelnet payment experience. For partners using our Enterprise payment platform, you won’t need to take any action.

Rest assured that no matter which product or version of our solutions you’re using, we’re dedicated to making sure that you’re compliant and prepared to offer secure, efficient payment processing.

Watch our on-demand webinar, entitled: New NACHA Account Validation Rule to learn more