CUSO to offer TrueACH with Account Validation and TrueCards to better prevent fraud
Top iTechnology Cloud News: Infinite Blue Forms Partnership with Footprint Africa Business Solutions (FABS)
TrueACH with Account Validation is designed to assist credit unions in complying with Nacha’s WEB Debit Account Validation Rule. The rule, which will be officially enforced on March 19, 2022, mandates ACH originators to validate accounts for ACH WEB transactions. By leveraging TrueACH with Account Validation, MDT’s credit union clients will be able to more easily confirm the account status and account owner or authorized user(s) on an account. By offering this as well as TrueCards, an omnichannel credit and debit card fraud prevention solution, MDT will help its credit union clients minimize the risk of trending fraud schemes such as account takeover, application fraud and transaction fraud.
“Regulation is driving significant changes and our approach to compliance has had to evolve; one of the main reasons we chose MDT as a partner was their ability to nimbly adapt,” said Troy Garvin, CEO of OMEGA FCU. “Their commitment and dedication to their credit union clients is reflected in partnerships with organizations such as AFS.”
Top iTechnology Networking News: o9 Solutions Helps Marelli Digitally Transform Its Business
Garvin added, “When we converted to MDT last November, we knew that account validation was likely to expose and help us manage fraud. Now with the new Nacha rules being implemented, we’re confident that we have a reliable partner that keeps a close pulse on developments in the industry and will help us better navigate regulatory changes. The question CEOs need to ask is, ‘do I have a partner like MDT who is always looking out for my best interest?’”.
TrueACH with Account Validation triangulates ACH account information against AFS’ cooperative database. With the solution, MDT’s clients can receive real-time responses on if the account exists and is in good standing; if the account is returning transactions; if the account is closed, non-sufficient funds (NSF), or at high-risk status; when the account has a stop-payment; and if the person is authorized to transact on the account.
“Our solutions help credit unions comply with Nacha’s rule, better protect their members as well as provide faster funds availability and faster checking-to-checking and checking-to-savings transactions, enhancing the member experience,” said Ted Kirk, VP of Strategic Partnerships at AFS. “Through expanding our partnership with MDT, we’ll be able to support more credit unions with this important initiative, helping them make faster payments safer and less prone to fraud.”
“As faster payments continue to become more prevalent, fraudsters are becoming more active in the space,” explained Larry Nichols, president and CEO of MDT. “It’s critical that credit unions recognize the sense of urgency to meet the Nacha WEB Debit Account Validation rule, to not only properly comply but to better protect their members as well. By offering TrueACH with Account Validation and TrueCards, to our credit union clients, they will be able to strengthen anti-fraud measures and ensure that payments land in the correct account, leading to a safer, improved member experience.”
Top iTechnology IT and DevOps News: Jio Platforms Ltd and SES Announce Joint Venture to Deliver High-Performance Satellite-Based Broadband Services Across India
[To share your insights with us, please write to sghosh@martechseries.com]
