ACH Compliance Tools help prevent unauthorized transactions, identify ineligible items, or block/blacklist transactions from specific originators. The system also searches for PRENOTE and Death Notification Entry (DNE) alerts for staff reviews. An Originator database is created from input files that can be used to easily search or blacklist transactions.

As the ACH system continues to electrify checks or other payments, institutions are not readily able to determine if the source documents or entries are eligible under the ACH RULES guidelines. JMFA FraudMANAGER® can verify most of the entry qualifications and report those that appear to be ineligible. Parameterized settings provide total control to which tests are activated and at what risk level.

PRENOTE transactions (an optional zero dollar test transactions initiated by an originator prior to the first live entry) are to be reviewed by the receiving institution to verify that the account number, account title/name, and account type are correct.

If they are incorrect, the item should be returned or a Notification of Change (NOC) should be initiated within two business days. The JMFA FraudMANAGER® ACH Tools automatically report all the PRENOTE transactions and display the information known about the account for easy processing. Also, because the system requires the staff to approve, return or modify (NOC) every PRENOTE, a record of the review is maintained for compliance audits.

Death Notifications Entries (DNE) are sent by the government to notify an institution that a beneficiary has died should no longer receive benefit payments. As soon as a DNE is received in the JMFA FraudMANAGER® database, the system automatically puts a block on any future ACH deposit entry from the government originator. This should help avoid potential losses related to RECLAMATIONS where the government failed to stop the direct deposits and made a claim for a refund.

The searchable ORIGINATOR DATABASE that is created with every ACH input file provides an extremely valuable asset for your institution. In the event a disreputable ORIGINATOR is identified, the BLACKLIST feature makes it possible to automatically flag EVERY incoming ACH debit transaction from that company and return the items. The BLOCK feature makes it possible to stop transactions only to a selected account. This is very helpful in situations where a customer has been attempting to stop payment on an item, but the company keeps resubmitting debits for different amounts.

Finally, ACH Compliance Tests help prevent unauthorized transactions, identify ineligible items, or block/blacklist transactions from specific originators. The system tests every transaction to determine if an ACH RULES compliance violation exists. Institutions can choose which test and parameters are used with this feature.

Payment Risk Analysis and Security Tools →