SCOTTSDALE, Ariz., April 7, 2014 – Early Warning, a leader in fraud and risk management, today unveiled an industry first: a solution created specifically to help payment originators reduce – in real-time – the billions of dollars in losses they absorb each year.
Early Warning’s Real-time Payment Chek® Service with Account Owner Authentication (AOA) – one of the company’s signature solutions – is now available to merchants and billers through select financial institutions (FIs). The Service quickly validates account ownership, status as well as Social Security numbers, addresses and telephone numbers. Traditionally, inaccuracies in this information has triggered significant losses – nearly $3 billion each year according to Early Warning’s research – that merchants and billers have been forced to shoulder.
Most of those losses can be traced to misinformation captured in the enrollment process, but insufficient payee funds (“NSF”) and unauthorized or fraudulent transactions also contribute to the shortfalls that payment originators must absorb.
Real-time Payment Chek Service with AOA helps reinforce trust across the entire payments network by drawing on the financial services industry’s most comprehensive checking-account information database. This database fuels Real-time Payment Chek Service, helping to ensure payment originators can transact with confidence, reduce losses and better serve their customers.
In recent years, new technologies and new payment methods have flooded the market, further increasing the volume of transactions that flow through the country’s electronic payment systems. One major system – the Automated Clearing House (ACH) – reports its volumes have grown by about 1 billion transactions annually each year since 2009.1
Now merchants, billers, telcos, insurers, utility providers, and even government agencies can work with select FIs to adopt Real-time Payment Chek Service with AOA to rapidly confirm identity, account status or authorized signers in real-time to do business in today’s digital marketplace.
Early Warning’s Real-time Payment Chek Service with AOA gives stakeholders in the payment system the edge they need.
“Payment originators identified a need for a solution that reduces NSFs, administrative returns and unauthorized transactions by accurately verifying account information in real-time,” said Lou Anne Alexander, Early Warning’s Chief Market Development Officer. “The financial services community can now offer Real-time Payment Chek Service with AOA to help their commercial customers improve payment processing and better serve its customers.”
About Early Warning
Early Warning has been a leader in protecting the U.S. financial system and consumers from fraud and account abuse for more than 20 years. The award-winning company is owned by five of the largest U.S. banks and works with financial institutions of all sizes as well as with government agencies, payment processors and check acceptance companies to identify and manage risk at the earliest point of detection. For more information, visit www.earlywarning.com.
1.ACH Network Statistics, NACHA.org
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