The need for low-cost, faster payment systems is increasing every day. Here’s an excerpt from an article issued by Nacha,
“Same Day ACH showed particularly robust growth. There were 176.6 million same-day payments, up 23.5% from the third quarter of 2021. The value of those payments—$478.5 billion—reflects a 102.7% rise from a year ago.”
Nacha recognizes the need for faster payment systems and is adopting technology at a rapid pace to facilitate faster, low-cost ACH transactions. We are well aware of the benefits that faster payment technologies bring to the table, but we often overlook the underlying risks. The risk associated with the incorrect adoption and implementation of these processes opens up technology to unforeseen fraud and compliance issues. This is where a solid risk management framework (RMF) comes to the rescue.
What is Enterprise Risk Management (ERM)?
In our previous blog, we covered the key elements and importance of Nacha’s updated integrated risk management practices for banks. To quickly recap, risk management refers to identifying, assessing, and controlling of threats that disrupt normal operations or cause a potential financial/identity risk at an organization. Enterprise Risk Management refers to implementing these risk assessment and preventative measures at large organizations to ensure compliance.
Fraud and Risk Management by Nacha
Nacha recently launched its new risk management framework and is planning on redesigning its website to highlight three core focus areas. These include:
- Compliance
- Risk and Fraud
- Experience
Nacha is highly focused on offering the safest possible experience to the entire ACH network user base. iCheckGateway.com is in a unique position to provide value to all these core focus points, but for this blog, we will focus on risk and fraud.
iCG solutions follow the top-tier Nacha-compliance and PCI-DSS compliance frameworks to offer additional layers of safety to all our clients and partners. As a Nacha-preferred member for automation and ACH, we are focused on providing innovative, safe payment solutions to all our ISO/ISV partners, financial institution partners, merchants, and agents.
The need for fraud and risk mitigation is rising linearly with the increasing use of the ACH network. Studies show that the ACH network handled over 29.1 billion payments totaling $72.6 trillion in 2021 alone, with this number projected to go up over the coming decade.
Nacha already has extremely robust fraud prevention tools and requirements at its disposal. However, more is needed. Financial institutions and enterprise organizations that want to start accepting mobile payments and leverage the faster electronic payment processing need to take charge and update their internal compliance measures to strengthen security further. They need to actively rely on check verification and PCI-compliant payment solutions to minimize fraud risks.
iCG’s Commitment to Safety and Excellence
Solutioning
As early adopters of the Nacha standards and regulations, we embed its recommended compliance and security measures into our business logic for our operational tools, reducing human error and standardizing the process more. A customer-first policy and a solid adherence to Nacha’s compliance guidelines while developing our solutions ensure that we emphasize the safety of our solutions.
As a PCI-compliant payment processor, we help our partners and merchants reduce their PCI scope for all customer transactions. Additionally, our online payment solutions leverage tokenization and encryption (while in transit and rest, along with truncation for display purposes) to protect customers’ sensitive data. The iCG-Verify account validation system aggregates data from numerous sources and evaluates several factors to determine the validity of a bank account.
Support
Our customer support and underwriting teams do an excellent job at identifying risks while processing a payment application to minimize the risk for our partners. Over the years, we have developed and refined internal custom operational tools to optimize and improve the KYC (Know Your Customer) process. We follow stringent protocols and have a strict policy to support businesses with fewer chargebacks and compliance issues with their merchant bank accounts. From the infrastructure standpoint, we treat all data the same as the level of PCI DSS regardless of if it is a PAN or DDA while also keeping an eye on changing Nacha requirements in case they exceed PCI in some way.
Education
Our digital marketing team actively maintains and publishes fresh payments education content on our blog at news.icheckgateway.com. As representatives of Nacha, we are committed to keeping our partners and customers informed; we stay updated with Nacha’s compliance rules and put fresh content on the blog every week. We help you ensure that your risk management practices are up to date with the latest standards by Nacha and other regulatory bodies with our periodic blogs, one-on-one training sessions, and webinars.
Get Started
We have extensively covered the process of getting started with risk management and information security practices on our blog: 10 Steps of Adopting Enterprise Risk Management for Payment Security.
iCG helps businesses process ACH payments and credit and debit cards on a single platform. Our host of innovative payment solutions include:
- ACH Payment Processing
- Credit Card Processing
- Email Invoicing
- Hosted Payment Portals
- Recurring Payments
- IVR Payments
- SMS Payments
- Virtual Terminals
- And more
Our team understands Nacha's operating methods and constantly updates its procedures and risk management practices to protect partners and customers from fraudulent activities.
Due to unforeseen circumstances, we could not move forward with the originally scheduled date and time of the webinar.
Don’t worry; we will reschedule and reserve you a first-come spot on our educational webinars for 2023.
You can still learn more about mitigating ACH fraud risk and discover solutions your organization will use to get into or remain in compliance with the Nacha regulations.
Choose a time to meet with one of our knowledgeable iCG team members to learn more about the world of cybersecurity in payments.
