Follow Nacha guidelines
Nacha is an independent organization responsible for administering the ACH network, enforcing guidelines related to ACH payments, and driving the adoption of ACH systems. Their risk management team has developed guidelines and resources to aid in preventing ACH fraud, including a portal of risk databases, current threats, and guidance on adhering to regulations. Learn more about staying up to date with Nacha rules.
Implement digital identity verification
Plaid IDV (identity verification) is a fast, secure method for verifying customer identity online. Using dozens of data points and even government ID uploads, IDV helps ensure customers are who they say they are, which reduces the risk of all types of fraud, including those that come from customer-initiated ACH returns.
Use instant account verification vs manual
Instant account verification uses an API to directly connect to a user's bank accounts to verify the account is active and in good standing. This allows companies to set up frictionless ACH payments in seconds, rather than hoping users enter the information correctly and waiting for ACH return codes to indicate an issue.
Unlike manual verification, this can be done in seconds right from a user's phone or computer, reducing the risk of ACH returns and improving payment security.
→ Need to reduce the risk of ACH fraud and returns? Plaid Signal provides an instant risk assessment and enables you to customize payment flows based on the likelihood of an ACH return.
