Verification Loop™

Minimize returns and stop fraud

Our customizable Verification Loop™ minimizes return rates and prevents fraudulent check transactions.

For this service, Payment21® automatically scrubs each check payment entered into our system and ensures the submitted transaction passes through a range of filters. We use more than 10 different scrubbing services with more than 150 million records combined in their databases. As a result, our verification process proactively fights fraud and prevents users from entering false banking information.

Payment21® customizable Verification Loop™ includes the following safety features:

  • Check Verification - utilizes leading scrubbing services with built-in routing functions and a backup loop to double-check negative check writer records
  • User Validation - uses text messages (SMS) in order to make submitted data more accurate and consistent
  • Data Validation - applies various business rules and velocity limits including our proprietary Mitigation Monitor™
  • Bank Account Verification - checks the ABA routing number, bank account number, and account positive balance in real-time
  • Address Verification System (AVS) on 5 or 5+4 zip code - to carry out automatic and manual AVS
  • GEO-Targeted Blocking - using this option, we can selectively block various states that you do not want to do business with
  • AML Cap - prevents any transaction that is over the limit set by you or permitted by law - in order to fully comply with International Anti-Money Laundering regulations
  • User Authentication - double-checks personal data such as driver's license, ID or SSN against public records; complying with our Customer Identification Program and Know Your Customer (KYC) provisions

To keep the return rate low, our risk management exercises strict rules automatically blacklisting any fraudulent account or any account belonging to a check writer with returned items. Many of our security features run invisibly in the background, providing the merchant's most valuable customers with a smooth payment experience while discreetly separating the good from the bad:

  • Device detection executes a set of business rules and velocity limits to determine whether the computer or phone used by the check writer is on your 'block list' of known bad devices.
  • Blocking any transaction with a check writer that has our internal high-risk rating with past decline result or rejected transactions.
  • IP filtering allows our system to link unrelated accounts and behavior to one-source IP address and block use from unsupported or high-risk areas. It also helps you to identify anonymous proxy IPs and transactional anomalies before they impact your business.

You may select to use our customizable Verification Loop™ in conjunction with our proprietary Mitigation Monitor™ (patent pending) as a standalone service - regardless of utilizing our check payment solution to process ACH transactions or Check 21 items.

 Demo AML/KYC-compliant on-boarding in 5 easy steps