ValidiFI Releases Quarterly Bank Account and Payment Intelligence Report

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Sep 25, 2024, 08:05 ET

Unlock Comprehensive Insights on Payment Performance and Bank Account Trends Beyond ACH Compliance

ALPHARETTA, Ga., Sept. 25, 2024 /PRNewswire/ -- ValidiFI , Inc., the leading provider of predictive bank account and payment intelligence, is excited to announce the release of its new quarterly report, designed to explore different areas of bank account and payment data to help businesses navigate the complexities of ACH compliance with Nacha, reduce fraud, and mitigate risks to enhance transaction efficiency. The report provides insights for organizations engaging in ACH payments, with a focus on account validation beyond regulatory compliance, highlighting the role of ValidiFI's powerful solutions in reducing payment failures and improving customer experiences.

With ACH transactions on the rise and the emergence of pay-by-bank applications, organizations looking to reduce processing fees and streamline payments, the importance of bank account validation cannot be overstated. ValidiFI's report underscores the importance of analyzing bank accounts for low-risk, NSF-risk (non-sufficient funds), and high-risk indicators, revealing key insights. Choosing the right validation strategy for your needs is essential for onboarding customers, detecting bad actors up front, and ultimately drives growth by reducing friction and improving financial outcomes.

"For High and NSF risk bank accounts, 2/3 of transactions result in a return, such as an R03 (no account/unable to locate) or R04 (invalid account number), representing a substantial operational challenge for companies dealing with high-risk payments. In comparison, low-risk accounts have a 97% success rate," the report reveals, underscoring the importance of having reliable bank account verification services.

Key Insights from the Report Include:

High-Risk

High-risk bank accounts show a significantly higher rate of returns. These accounts have experienced 11.5 times more ACH returns than low-risk accounts and subsequent payments result in only 14% being successful.
NSF Risk

NSF risk is a key predictor of future account performance. According to ValidiFI's findings, there are 2 NSFs for every successful transaction for this group, leading to a disproportionate risk burden.
Low-Risk

In contrast, low-risk bank accounts in the ValidiFI database demonstrate consistently good payment behavior. This allows organizations the ability to streamline and auto-approve these consumers, resulting in significant cost and time savings.

"These insights from ValidiFI help organizations comply with Nacha regulations along with the tools necessary to assess and manage payment risks more effectively, resulting in a better customer experience," said John Gordon, CEO of ValidiFI. "By leveraging bank and payment data to identify high-risk accounts, those with NSF risk, and low-risk bank accounts, organizations can tailor their workflows reducing the frequency of failed transactions and improve overall payment operations."

For more information and to download the report, visit Q3 2024 Report: Beyond Compliance: Elevating Risk Based Bank Account Validation. The infographic asset can also be found here.

About ValidiFI

ValidiFI is the leading provider of predictive bank account and payment intelligence. Leveraging the Omni Platform, ValidiFI empowers organizations and financial institutions with actionable insights to help validate bank accounts, detect fraud, and assess credit risk. By analyzing the intricate connections between bank accounts, consumers, and payment performance, ValidiFI offers a more comprehensive view. ValidiFI serves as a trusted partner, unlocking the power of predictive bank account and payment intelligence through credentialled and non-credentialed solutions, enabling more confident transactions. For more information, visit validifi.com.

SOURCE ValidiFI