ACH validation confirms that a bank account is open, active, and able to receive debits before a transaction is submitted to the ACH network. It is critical for reducing return rates, preventing unauthorized transactions, and meeting Nacha's requirement that originators of WEB debit entries use a commercially reasonable fraudulent transaction detection system for online ACH payments.

Yes. Account validation is performed in near real time before a transaction is submitted to the ACH network. CSG Payments' solution checks bank account status, confirms routing and account number validity, and verifies account ownership, giving merchants actionable results before funds are ever requested, reducing the likelihood of costly returns.

CSG Payments’ verification solutions are comprised of two tools: Validate (and Validate+), which confirms that the routing and account numbers are active, allows debits, has no stop payments, and reviews NSF history; and Authenticate, which verifies account ownership. Nacha-compliant methods including micro-deposits and bank login-based verification via third parties are also referenced as practical options for WEB debit compliance.

Yes. CSg Fraud management solutions including Validate, Validate+, and Authenticate are available as standalone services and can be used alongside an existing payment process. Organizations do not need to migrate their full processing relationship to benefit from account validation, making adoption low-risk and incremental.

When a validation check flags an account as invalid or high-risk, the transaction is prevented from being submitted to the ACH network, reducing the likelihood of a return. Merchants are notified through the Dex platform with detailed reporting on account status. Customers can be notified via automated text or email.