GIACT Identity Protection

Every year, more Americans use ACH (Automated Clearing House) to send and receive payments, replacing traditional check processing in a way that boosts efficiency and cuts processing expenses. People and businesses can initiate ACH transfers on the Internet or by phone. It's also possible to bypass conventional processing by directly converting paper checks into electronic payments. Although the ACH system offers many benefits, it also presents various risks. Businesses must exercise caution to avoid fraud and other problematic transactions.

Major Risks

When ACH transfers fail, it usually happens due to one of three reasons.  Fraudsters may send payments using invalid account numbers or cash stolen from identity theft victims.  However, according to the Federal Reserve, the most common problem is that payers have insufficient funds to complete their purchases. Another major concern, payers make errors in the process of submitting account data.

Trust - But Verify The Account

When the ACH network returns invalid payments, businesses may incur fines or lose money on products that they have already delivered. Payment risk services can help companies avoid these costly mistakes. One beneficial option is a real time check verification service. When clients submit ACH payment details, businesses can quickly validate that the account is open and active.  This makes it easy to decline payments from frozen accounts or people who mistakenly supply the invalid account or routing numbers.

Confirm The Funds

While it's vital to identify errors and fraudulent transactions, businesses must also address the most prevalent ACH risk - insufficient funds to make purchases.  A few people intentionally order products when they know that they have too little money, but record-keeping mistakes are more likely to cause this problem. Either way, a check and ACH funds confirmation solution can eliminate this. After the verification system certifies an account's authenticity, this service determines if it holds enough cash to cover the transaction.

Choosing The Right Solution

These services enable businesses and customers to benefit from the ACH system while avoiding excessive financial risks. Fortunately, they are also simple to implement.  Make sure you choose a provider that is easy to work with, offers in-house design and implementation services, and has the most up-to-date account and customer data.  Don’t pay excessive setup fees or minimums, and make sure you can try the service before you buy it.


What if accepting ACH payments could be as easy and risk-free as accepting credit or debit cards?  Giact provides comprehensive ACH risk management solutions.  Let us help you design the right solution. We offer a free evaluation, so there's no reason not to give it a try. To learn more, please contact us online or call 866-918-2409.