Choosing the Right Validation Partner: A Compliance-Ready Checklist

Accuracy, Speed, Fraud Prevention, and Nacha 2026 Readiness

Why This Matters

Account validation isn’t just a compliance checkbox—it’s a strategic necessity. Nacha’s WEB Debit Account Validation Rule (from 2021) already requires validation for first-use consumer accounts; and with multiple new Nacha rules scheduled through 2026 (see full timeline), financial institutions (FIs) —whether acting as an Originating Depository Financial Institution (ODFI) or a Receiving Depository Financial Institution (RDFI)—must modernize ACH processes and strengthen fraud defenses. These rules impact both senders and receivers of ACH funds, so readiness is critical across the entire payment flow.

The urgency is clear: ACH volumes hit 8.8 billion payments valued at $23.2 trillion in Q3 2025 while real-time payment rails like FedNow and RTP are surging with transaction limits now at $10M. This shift demands instant account verification and fraud prevention.

What Businesses are Saying about Nacha Compliance

Recent polling during an American Banker webinar, where ValidiFI partnered with Finzly to discuss Nacha readiness and ACH modernization, indicated that businesses are still working toward full compliance:

• 46% need to learn more about Nacha’s impact on ACH processing
• 41% have only a general idea; just 13% fully understand the implications
• Confidence in vendor readiness for 2026 changes:
  • 66% somewhat confident
  • 26% very confident
  • 9% not confident
• 84% believe ACH resilience should be reevaluated, and 72% admit they are not confident in delivering modern treasury services.

These numbers underscore a critical truth: most institutions are not fully prepared for what’s coming.

The Pressure to Modernize—Key Forces Shaping Payments

This confidence gap isn’t just a technical hurdle—it’s a strategic risk. Businesses that fail to modernize payments and treasury services risk falling behind. The pressure is mounting and stakes are high, and here’s why:

• Fraud is escalating: U.S. businesses lost $12.5 billion to fraud in 2024—a 25% increase year-over-year. (FTC)
• Compliance complexity: Nacha, PSD2, and other mandates require robust validation and fraud detection.
• Real-time adoption: Multi-rail strategies are becoming the norm as RTP and FedNow gain traction alongside ACH. ACH remains dominant, but 75% of businesses plan to adopt RTP or FedNow within the next five years.
• Compliance spend is surging: The real-time compliance market is projected to grow from $4.8B in 2024 to $14.1B by 2033 (CAGR 14.2%).(Dataintelo)

Checklist: What to Look for in an Account Validation Partner

The risks are clear: fraud, compliance complexity, and real-time adoption are reshaping payments. The question is—how do you choose a partner that can keep pace? This checklist distills what matters most so you can compare vendors and select a solution built for today’s challenges and tomorrow’s opportunities.

✅ Accuracy & Coverage

Question: Does the provider deliver broad, reliable coverage for all your account types?

• Aligns with major banks, credit unions, and neobanks
• Leverages predictive intelligence and multi-source data for deeper insights
• Delivers high verification and authentication coverage to minimize fraud exposure
• Supports both consumer and vendor account validation, including business accounts and high-value transactions

✅ Speed & Real-Time Capabilities

Question: Can the solution keep pace with real-time payment rails and your operational needs?

• Supports instant verification for ACH and real-time payment networks (RTP, FedNow)
• Provides APIs for seamless integration into existing workflows

✅ Compliance Readiness

Question: Is the provider prepared for current and upcoming regulatory mandates?

• Aligns with Nacha WEB Debit Rule and anticipated changes to the Fraud Monitoring Rules of 2026
• Offers audit trails and compliance reporting for easy verification

✅ Fraud Prevention & Risk Intelligence

Question: Does the solution actively protect against evolving fraud threats?

• Assesses behavioral signals and transaction history for anomalies
• Uses AI/ML to detect synthetic IDs and account takeovers
• Includes tools to flag vendor payment anomalies and verify account ownership to prevent BEC and invoice fraud

✅ Scalability & Flexibility

Question: Will the solution grow with your business and adapt to changing risk thresholds?

• Supports layered verification logic (name match, ownership confirmation, transaction history)
• Adapts to your risk thresholds and business model without friction

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Wondering What this Looks Like in Action?

When businesses compare validation solutions, they need more than promises—they need proof. That’s why we conduct data studies benchmarking performance against legacy providers.

Our most recent analysis is a head-to-head comparison that shows what “better coverage” and “higher authentication” actually mean in practice. The results weren’t just incremental—they were transformative:

+18% increase in verification coverage
Meaning: More accounts were successfully confirmed as valid, reducing the risk of sending payments to closed or fraudulent accounts.

+30% increase in authentication coverage
Meaning: Beyond verifying account existence, we confirmed ownership and identity, which is critical for compliance and fraud prevention.

88% of verified accounts were also authenticated
Meaning: Nearly nine out of ten accounts passed both checks, dramatically reducing blind spots and strengthening payment security.

This is what best-in-class looks like—and it’s what you should expect from any partner you choose.

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Why It Pays to Choose Right

Modernization isn’t optional—it’s urgent. Choosing the right validation partner ensures you’re ready for Nacha’s evolving rules, fraud threats, and customer expectations for speed and security.

Want to make this easy?

Download our Account Validation Checklist—a practical resource you can share with your team. Use it to compare providers and make confident decisions about accuracy, speed, compliance readiness, and fraud prevention.

Download the Checklist | Or schedule a consultation: ValidiFI.com

 

Additional Resources

• Nacha’s 2026 Fraud Monitoring Rules Changes: What They Mean and How ValidiFI Helps You Stay Compliant
• Best Practices: Nacha Fraud Monitoring for RDFIs
• Best Practices: Nacha Fraud Monitoring for ODFIs
• Don’t Just Check the Box—ValidiFI It
• Nacha Account Validation Resource Center
• Federal Reserve Payments Study
• ACH Network Volume & Value Statistics