While ACH payment transactions have not traditionally been subject to the same security mandates that credit cards have, everything’s changing. NACHA has mandated that security measures now must be put in place to protect sensitive data in ACH payment transactions, with an effective date of June 30, 2022, for originators and parties with volumes greater than 2,000,000 transactions.
As such, getting your business up to speed with an ACH Tokenization Solution is crucial, to ensure that you’re meeting best practices and giving your customers the security they need to trust you. We’ll talk you through why in this article.
Why Do We Need An ACH Tokenization Solution?
The mandate from NACHA (which has been extended due to COVID) means that the standard ACH data points (bank account number and routing number) for transitions must now be replaced with a token for reference. The routing number, in particular, acts as an identification for the businesses or customer’s bank.
These tokens help to prevent lost data and increase security for transactions, as per the mandate. But aside from that, it’s simply good practice, for your business and for your customers. Any moves to increase security are smart moves — after all, all it takes is one misstep or untrustworthy person accessing your system, and vulnerable data can be severely compromised. Moving your business in line with the new mandates helps keep everything in check.
How Can A Payments Solutions Provider Help?
If you’re unclear on how tokenization can work for your business, a payments solutions provider can advise you on your best options. Although high-end solutions providers will typically include ACH Tokenization Solutions as part of their remit, the direct relationship with their ODFI that organizations and companies have (and through this, their usual placement in the higher tiers of the NACHA mandates and rules) makes them more in need of tokenization processes. These companies can often send NACHA-formatted files back and forth to their ODFI for origination — files that have highly private, valuable data inside. ACH Tokenization Providers offer different capability providers.
For that reason, the best payments providers offer system integration with your ODFI, along with a range of other reporting tools, software API integrations, and data collection services.
At Agile Payments, we strive to offer top ACH Tokenization Solutions for your business. With almost two decades of experience, we know how to get your organization to the securest place it can be. Get in touch today, and let’s talk about how we can help you.