SWBC picks Finicity Pay to meet new ACH requirements
US-based Southwest Business Corporation (SWBC) has selected Mastercard subsidiary Finicity to provide its account validation services.
SWBC, based in San Antonio, provides insurance, mortgages, and investment services to individuals and businesses.
The firm aims to use Finicity Pay to meet the National Automated Clearing House Association’s (Nacha) 2021 requirements.
These require strong snit-fraud controls on Automated Clearing House (ACH) payments.
Finicity says its platform replaces older methods of verification, such as micro-deposits and pre-notification.
“Providing secure and efficient access to the initiation of ACH payments is essential for today’s consumer,” says Tucker Stovall, SWBC vice president for product strategy.
“Instant verification allows for speedy enrolment and immediate access to ACH transaction initiation, a significant improvement to the user experience.”
Nacha, which manages the development of the ACH network in the US, is introducing the Web Debit Rule in March 2021.
It requires businesses that debit funds via ACH to use enhanced fraud protection through account verification.
“The Nacha 2021 [provides] stronger anti-fraud controls leading to a more secure payment experience,” says Finicity CEO, Steve Smith.
“Instant data verification is the best way to enable consumers to pay, get paid, or set up accounts.”
Mastercard acquired Finicity last year in a deal worth $825 million. It arrived a few months after rival Visa announced a $5.3 billion deal to acquire Plaid.
While Mastercard’s deal saw approval from the US Department of Justice, Visa had to pull out of its Plaid acquisition earlier this month.