ACH Fraud Protection

Early Warning® Account Validation Service

Catalyst Corporate offers ACH origination fraud protection through the Account Validation Service from Early Warning, which provides advance notification of high-risk ACH origination transactions and return items. These transactions are compared to financial institution-contributed data in the Early Warning National Shared Database℠ Resource. Matches are reflected in reports the next business morning to credit unions participating in Catalyst Corporate ACH origination services. These notifications result in substantial cost savings by allowing credit unions to identify fraudulent transactions quickly. The ACH Fraud Protection Service can be used in conjunction with or independently from Catalyst Corporate's Deposit Fraud Protection Service.

Features & Benefits:

  • Account information from credit union ACH origination transactions is compared to a database that includes the account status of 95 percent of accounts nationwide.
  • The service validates approximately 60 high risk, medium risk, and low risk warning codes to inform credit unions of the likelihood of a return.
  • Examples of high risk warnings are Closed Account, Stop Payment, Recent Return History, and Overdrawn Account.
  • Credit unions using the Account Validation Service receive Return Notification Reports that provide advance warning of actual return items.
  • Approximately 30 return reasons explain why items are being returned. Examples include Insufficient Funds, Stop Payment, and Closed Account.
  • Warnings received by credit union staff allow for timely placement of holds on member accounts.
  • This service can work in conjunction with Catalyst Corporate's Deposit Fraud Protection Service
    • Independent thresholds can be set for ACH and deposits.
    • Data on ACH and deposits is combined on one set of reports.

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