The world of ACH Origination is complex – navigating regulatory compliance, managing risk, clearing the ongoing technical and operational hurdles, tracking and reconciling transactions, and then of course – keeping customers happy. It can be a lot.
But even if your credit union only originates consumer entries such as transfers and loans, it’s still exposed to the same risks as credit unions and other FIs that offer traditional business origination services such as payroll and B2B payments. Which is to say, offering less doesn’t mean doing less.
The good news is that the same risk management techniques used to mitigate business payment origination can also be considered for consumer payment services. So, whether you offer one, or both, the same best practices apply. Here are a few to implement at your credit union:
As a bonus, here are two risks unique to originating consumer-to-consumer debits and credits that you should be aware of:
Got more questions about best practices for ACH Origination? Don’t see one you thought we should’ve had on our list? Reach out and let us know.
© 2023 Wespay Advisors. All rights reserved.