23 Billion Chances (To Get Nailed By ACH Fraud)



Automated Clearing House(ACH) payment volume is growing and so is your risk for potential fraud. In fact, ACH transactions have increased by over 2,000% during the last 30 years and business-to-business ACH payments have skyrocketed. The total number of ACH transactions grew to 23 billion, according to NACHA, and a new Payments Innovation Alliance white paper suggests that mobile technology will make ACH even more popular in the years to come.  Knowing how to protect your company is critical.

ACH Brings Cash Flow and Security Benefits

There are reasons more and more companies continue to realize this electronic payment system offers valuable advantages. It provides increased security in that it eliminates check theft.  ACH also benefits your business which allows you to eliminate the need to process paper checks or to wait for them to arrive in the mail. Having clients pay by ACH reduces payment processing time resulting in a shorter accounts receivable cycle time. This has helped make ACH payments popular across all industries including insurance companies, money service businesses, lenders, and retailers.

Recent enhancements to the system have attracted even more users. Phone and Internet money transfers are extremely popular.  In addition, “Same day ACH” payments are coming.  These updates radically increase flexibility and adoption without sacrificing the system's efficiency or reliability and have driven the total ACH payment volume to over $40 trillion in 2014.

Be Aware of ACH Payment Risk

JP Morgan reports that over 20% of deceitful transactions involve ACH payments. They can involve stolen identities, fraudulent account ownership, and inadequate funding. This can result in substantial network and bank fines to the company accepting ACH; The average NACHA penalty exceeded $2,400 in 2014. Furthermore, some companies are no longer able to accept ACH transactions because their return rate is too high.

To avoid this costly problem, consider using real time payment risk services. These services allow you to instantly verify account status, confirm account ownership, validate a person’s identity, and confirm sufficient funds. It can be seamless - integrating directly into payment workflows and applications.  Good customers experience a “low-friction, low insult” transaction and fraud is frozen out.

How To Get It Right

If your firm wants to benefit from the ACH network while avoiding fines and fraud, look for an experienced, reputable company that provides real time payment risk services. Select a solution that has the greatest coverage and the most current data.  Insist on an easy to use interface and easy integration path, and don’t accept large setup fees and minimums. You should be able to try the solution for a reasonable period of time to make sure you are comfortable with the results and are confident that you have a long-term partner.


What if accepting ACH payments could be as risk-free as accepting credit or debit cards?  GIACT can make that happen and your customers will love you for it. Let us help you design the right solution and offer you a free evaluation. There's no reason not to give it a try. To learn more, please contact us online or call 866-918-2409.


1. 1st in Media, http://www.pymnts.com/news/b2b-payments/2015/b2b-payments-brings-major-growth-to-ach-volume/#.VW3miFzBzGd

2. NACHA, https://www.nacha.org/ach-network/timeline, https://www.nacha.org/news/nacha’s-payments-innovation-alliance-releases-white-paper-“leveraging-mobile-channel-ach, https://www.nacha.org/news/ach-volume-increases-23-billion-payments-2014

3. ConocoPhillips, http://vendors.conocophillips.com/payments/Pages/payment-methods.aspx

4. JP Morgan, https://www.jpmorgan.com/tss/DocumentForEmail/2012_AFP_Survey_sponsored_by_JPMorgan/1320487900447


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