Commercial Payments International

Boston based payments company, Aliaswire has announced that it will start providing bank account validation (BAV) solutions to banks and their commercial clients. This has come after National Automated Clearing House Association (NACHA) back in March 2021 made a regulation that required ACH originators to enable account validation to help curb fraud.

The press note quoted that ACH originators must use account validation as a “commercially reasonable fraudulent transaction detection system” to screen web debits for fraud. The company’s BAV solution would be supported by Nacha’s Phixius Peer-to-Peer Network, allowing participants to exchange and verify payment-related information.

According to the press note, the network would provide a single connection for verification and exchange for payment related data with standardized APIs , and secure payment information exchange and validation via blockchain/distributed ledger technology tokens.

The company also claims in the press note that the solution also confirms payment history, and will also confirm account ownership and matching ownership to the payment originator; and consistency of personally identifiable information (PII). It is offered as a standalone service and a feature with the company’s DirectBiller, which is a billing and payments platform.

“Modern account validation should deliver multiple benefits such as increasing your transaction volumes and improving the user experience while also preventing fraud”, said Jed Rice, CEO of Aliaswire.

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