The NACHA account validation rule has been a legal requirement since 2022 to fight against financial scams on the ACH network.
This regulation states that “originators of web debit entries” must include account verification when processing ACH payments.
It’s applicable for organizations of any size, in any industry, in the US. Here are a few benefits:
ACH account validation requires your company to verify the routing number, bank account number, and available funds.
In case of vendor fraud, however, the change of bank account can be done fraudulently. Using Trustpair prevents that by running automatic checks in the background before any transaction is sent.
With the current push towards instant payments, the risk is even bigger. Instant ACH transfers further reduce your chances of getting your funds back if they’ve been sent to the wrong account.
With Trustpair:
When it comes to ACH bank account verification, businesses have several options.
The traditional method? Manual verification. While it works, it’s time-consuming and impractical for companies handling high transaction volumes.
A faster approach is instant account verification, where customers log in to their financial institution directly through your website.
Another method is microdeposits (or penny drop), which require small test deposits but take 1-2 business days to complete.
The most efficient solution? Automating ACH verification with a third-party platform like Trustpair. It streamlines the entire process, delivering instant, secure validation in seconds.
Confidently validate vendor bank accounts globally and validate their legitimacy across 190 countries thanks to the largest banking data sources network.
"Trustpair gives us more reliability and peace of mind. The financial director is more serene when it comes to approving the transfer order."
"With Trustpair’s verification methodology, it's no longer just a consistency check but an exact confirmation of the validity of the third party: there is no longer any risk."
"With Trustpair, we are able to automatically and quickly monitor our third parties and ensure the security of that very data over the long term."
“I would definitely recommend Trustpair to finance departments. It makes adding and modifying beneficiaries more reliable, without resorting to manual processes that are cumbersome, time-consuming and fallible.”
“The control process is simplified with the Trustpair solution, the Finance Department is reassured and, above all, it no longer needs to waste time performing manual checks to verify a supplier's bank details.”
"Trustpair adapts very well to the specifics of our market and our way of working. Several features are developed as we work together. That's a real plus."
"Trustpair has become more than a reflex; it has become an obligation. The team no longer validates an IBAN unless Trustpair has confirmed it to us."
Thanks to Trustpair, we’ve made a significant shift in our security processes and filled the gaps we needed to fill. Trustpair has proved to be a committed and trustful partner and we’ve appreciated the support and transparency.
We’ve gone from manual and time-consuming fraud controls to automated bank account validation done directly in SAP. The workload has been drastically reduced and payment security is now guaranteed.
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Regulatory Compliance
Regulations exist for a reason. Nacha account validation requirements help ensure accurate bank details, while KYC (Know Your Customer) and AML (Anti-Money Laundering) frameworks apply to high-risk industries like insurance. Compliance safeguards businesses from fraud, money laundering, and security breaches while protecting sensitive consumer data and fostering trust.
Standardize Your Processes
A streamlined account validation process ensures consistency and efficiency across your organization. Assess your current approach and identify ways to improve—whether by simplifying workflows, involving key stakeholders, or implementing systematic controls. Regularly verifying third-party financial information, especially for international suppliers, is critical. Embedding account validation into internal controls enhances cybersecurity and leaves a clear audit trail.
Strengthen Due Diligence
Account validation isn’t just about compliance—it’s about protecting your business from fraudsters and illicit activity. A strong due diligence process goes beyond basic checks, incorporating robust controls to prevent unauthorized transactions. With Trustpair, automated and systematic vendor data verification ensures every transaction is secure, eliminating the risks of manual validation.
Beyond being an Account Validation Service (AVS), Trustpair helps you manage risk efficiently on a global scale.
Designed for ease of use, our platform features intuitive dashboards, workflows, and task centers. These dashboards provide a clear overview of vendor information and risk levels, helping you make informed decisions in risky situations.
Vendor evaluations are near-instant and can be triggered at any point in the supplier lifecycle—not just when a vendor is created. They leverage external banking data to verify key details like routing numbers, company status, and account numbers.
Additionally, Trustpair provides live alerts via email or platform notifications, flagging unusual transactions—such as unexpected amounts or dates—and blocking them preventively.
Routing numbers enable you to identify banks before transfers or on a check. Validating the ACH routing number is important before executing an ACH transfer to make sure you’re sending funds to the right beneficiary, avoiding mistakes or even fraud.
There are different methods to validate routing numbers like online tools or direct bank lists.
However, validating routing numbers isn’t enough to wipe out fraud. Even if the routing number is valid, it doesn’t mean the rest of the banking information is correct. Fraudsters could have opened an account in the same bank as the actual beneficiary to commit fraud under the radar. It’s important to check more information like the company’s address, country, etc
Automated account validation is crucial for preventing errors, mitigating fraud risks, and ensuring compliance with financial regulations.
Legal Risks:
Failing to verify accounts can lead to non-compliance with US laws such as Nacha, KYC, AML, and SOX. This may result in corporate fines and legal issues during audits, especially for publicly traded companies.
Operational Risks:
Without account verification, businesses face increased chances of errors in banking details and transactions. These mistakes can damage supplier relationships and often result in irreversible fund transfers.
Fraud Risks:
Lack of account validation exposes businesses to various fraud schemes. Common techniques include vendor fraud, phishing attacks, and CEO impersonation. Scammers may use spoofing, false invoices, or network hacking to commit fraud.
Automated account validation wipes out fraud risks throughout the P2P.
It checks the legitimacy of vendors and their banking data throughout the entire payment chain – onboarding, vendor data changes, before payment campaigns, etc. This ensures 100% of data reliability and wipes out fraud and error risks, bringing peace of mind to finance teams.
On top of this, it boosts your team’s efficiency.
Manual checks of vendor banking data (by email, text message, callbacks, etc) take up at least 30 minutes for one supplier. With automated instant validation, results are instant. Team resources are no longer drained and time-consuming tasks are replaced. On top of that, collaborating and interacting on one single platform breaks down silos and empowers sensible decision-making
