Finicity’s open banking platform, Finicity Pay, will help SWBC to meet the National Automated Clearing House Association (Nacha) 2021 norms for ACH transactions
Finicity Pay to help SWBC meet Nacha 2021 norms for ACH transactions. (Credit: Darwin Laganzon from Pixabay)
US-based financial services firm Southwest Business Corporation (SWBC) has selected Finicity, a Mastercard company, for secure online Automated Clearing House (ACH) payments.
SWBC has chosen Finicity’s open banking platform, Finicity Pay, for instant account validation of ACH payments.
Finicity Pay will also help SWBC meet the National Automated Clearing House Association (Nacha) 2021 norms for ACH transactions.
Finicity CEO and co-founder Steve Smith said: “The Nacha 2021 rule is intended to provide stronger anti-fraud controls leading to a more secure payment experience.
“Instant data verification is the best way to enable consumers to pay, get paid, or set up accounts. Our team is continually expanding our capabilities in money movement through our trusted open banking platform.”
Finicity said that the Finicity Pay open banking platform replaces the traditional verification methods such as micro-deposits and pre-notification.
The US-based financial services firm will also use Finicity Connect, a consumer-centric open banking application, allowing customers to digitally authorise and approve their bank account information for making a safe ACH bank payment.
Both Finicity and SWBC are preferred partners of Nacha, which manages the development, administration and governance of the ACH Network.
Nacha to implement new rule from March this year
Nacha will implement a new rule, known as the WEB Debit Rule, from March this year. According to the new rule, businesses that debit funds via ACH for online orders to deploy upgraded fraud protection through account validation.
SWBC product strategy vice president Tucker Stovall said: “Providing secure and efficient access to the initiation of ACH payments is essential for today’s consumer.
“Our partnership with Finicity will allow SWBC to deliver new security capabilities protecting consumers and the institutions that serve them. In addition, instant verification allows for speedy enrolment and immediate access to ACH transaction initiation, a significant improvement to the user experience.”