PayWeb v.126.96.36.1998 is now available in production. The purpose of this release is to add Bank Account Verification.
Bank Account Verification
Bank Account Verification is a feature of PayAPI, PayAgent, and ValidPay that enables merchants to verify that bank accounts are open and in good standing prior to accepting a payment. Now, as part of this release, merchants can do the same within PayWeb 2.
How does it work?
- User enters an invalid bank account and clicks Continue on the Make Payment page
- PayWeb 2 submits an AddBankAccount request to PayAPI
- IF a BankAccountVerificationFailed error response (5055) is returned THEN PayWeb 2 presents the following disclosure
What are the use cases?
Bank Account Verification has the following use cases:
|ACH Return Rate Management||NACHA has established an inquiry process which is triggered when an ACH originator exceeds a return rate threshold*. This can be problematic for subprime merchants, particularly those who enroll customers in auto debit.|
|WEB Entry Account Validation||Effective March 19, 2021, NACHA is requiring bank accounts to be validated as part of a commercially reasonable fraudulent transaction detection system for WEB debit entries.|
*See NACHA Return Rate Thresholds below for more information.
NACHA Return Rate Thresholds
NACHA has established the following ACH return rate thresholds:
|Unauthorized debit entries||• R05 – Unauthorized Debit to Consumer Account Using Corporate SEC Code|
• R07 – Authorization Revoked by Customer
• R10 – Customer Advises Unauthorized, Improper, Ineligible, or Part of an Incomplete Transaction
• R29 – Corporate Customer Advises Not Authorized
• R51 – Item Related to RCK Entry Is Ineligible or RCK Entry is Improper
|Administrative returns||• R02 – Account Closed|
• R03 – No Account/Unable to Locate Account
• R04 – Invalid Account Number Structure
Bank Account Verification can be enabled by reaching out to your PaymentVision Relationship Manager.