Web Debit Account Validation

Overview

This section describes Web Debit Account Validation and the steps to enable this functionality.

Note:

This section is only relevant for some organizations. The system configuration requirements described in this section are only relevant if your organization is required to validate bank accounts that are used for the first time in electronic payments and/or automatic payment enrollments. This functionality does not cover credit card payment types, which are verified through tender authorization.

Web Debit Account Validation allows your implementation to validate a first-use checking/savings account that is captured through any of the following:

Agent-assisted One-Time Payments (via Add One Time Payment user interface)
Agent-assisted Account Auto Pay Setup (Account - Auto Pay page)
Self-Service Automatic Payment Setup
Self-Service One Time Payment
Self-Service Wallet Management
Other user interface or back-end processes that add/update Account Auto Pay records using the Account Auto Pay row maintenance.

The account validation method is your implementation’s choice, based on what regulation prescribes as acceptable account validation options. For instance, the National Automated Clearinghouse Association (NACHA) - that governs the ACH network in the United States - prescribes any of the following options:

ACH prenotification. With this option, a zero-amount checking/savings debit pre-note transaction is sent through the auto pay extract, to verify the bank account information. If a negative response is not received from the bank within a set number of days, the account is considered valid.
ACH micro-transaction verification. With this option, two very small transactions – a debit to deposit the money and a credit to remove the money - are sent to the account. The account holder needs to confirm the amounts on the transactions. The account will only be considered verified if the account holder describes the amounts correctly.
Commercially available third party validation service vendors. Some financial institutions and third parties have access to a large number of accounts and may offer a product that leverages this information. These services can be accessed for verifying that account information is correct and/or verifying the account holder’s identity. The responses can be real-time, same-day or next-day.

Web Debit Account Validation is a Plug-in

An algorithm plugged in on Auto Pay Route Type or on CIS Division - Auto Pay Route Type Override Controls (if applicable) is responsible for web debit account validation. Payment methods captured for automatic payment setup and one time payments specify the Auto Pay Source, which in turn, identifies the Auto Pay Route Type.

The base product provides a Web Debit Account Validation Algorithm for ACH prenotification. The algorithm creates a zero-amount payment event with a Prenote Tender Type (from the Auto Pay Source) and an Auto Pay Clearing Staging record containing the account number to verify and that is scheduled to extract the same day.

Refer to the Web Debit Account ACH Prenotification (C1WDAPRENTF) algorithm for details.

Note:

The auto pay extracts (APAYACH and C1-APACH) stamp specific transaction codes for checking debit prenotification (28) and savings debit prenotification (38) on the Entry Detail record. The transaction code is retrieved from the prenotification Tender Type’s External Type.

Web Debit Account Validation Applies to Self-Service Tasks that Manage Payment Options

The following self-service task business objects include an Account Validation status, where web debit account validation is performed:

Self-Service Automatic Payment Setup Task - WX-AutoPayTask
Self-Service One Time Payment Task - WX-OneTimePayTask
Self-Service Payment Option Task - C1-PaymentOptionsTask

The service task's Account Validation status has an enter algorithm that performs the Web Debit Account Validation Algorithm configured in the Auto Pay Source’s Auto Pay Route Type (or in the CIS Division’s Override Auto Pay Controls, if applicable) when the service task type has Web Debit Account Validation enabled and the specified bank account number is not found in any of the account’s existing auto pay options and in any of the account persons' self-service payment options. The account auto pay option or self-service payment option is not saved until the bank account is determined to be valid. If web debit account validation processing encounters an error, the service task goes to the Account Validation Error status that includes retry processing and wait timeout processing. If the bank account is deemed invalid, the service task goes to the Rejected status. Refer to the above mentioned business objects in the application, for more details.

Note:

When checking for the existence of a bank account number in person self-service payment options, the system relies on the hash value (in HASH_EXT_ACCT_ID). Implementations must ensure that encryption configuration for this table field includes both the encrypted and hash fields and that legacy data has both fields populated. Refer to Encrypting Sensitive Data and Managing Encrypted Data for more details.

Validating Bank Accounts Captured on Add One-Time Payment UI

The Add One-Time Payment user interface allows the capture of first-time-use bank accounts. If a bank account has not been used on any of the existing Account and prior self-service one time payments, the system will create a One-Time Payment Task (C1-OneTimePaymentTask) that performs web debit account validation and adds the payment event (if the bank account is valid). Since the Add One-Time Payment UI can handle multiple tenders, a single One-Time Payment Task manages all auto pay tenders that require validation. The service task's Account Validation status has an enter algorithm that performs the Web Debit Account Validation Algorithm configured in the Auto Pay Source’s Auto Pay Route Type (or in the CIS Division’s Override Auto Pay Controls, if applicable).

Note that the Payment Event is kept in an Incomplete state while web debit account validation is in progress. The service task's lifecycle processing on the service task will either freeze or delete the Payment Event, depending on the result of bank account validation. If the payment is frozen, a Person Self-Service Payment Option is also created for the main person on the account, to make that payment option available for future self-service one-time payments.

Refer to the C1-OneTimePaymentTask business object in the application, for more details.

Validating Bank Accounts on Account Auto Pay Setup

The Account - Auto Pay page checks if a specified bank account number has not been used on prior account auto pay options or on person self-service payment options. If this is the case, the system creates a Bank Account Auto Pay Setup Task that performs the web debit account validation. The service task's Account Validation status has an enter algorithm that performs the Web Debit Account Validation Algorithm configured in the Auto Pay Source’s Auto Pay Route Type (or in the CIS Division’s Override Auto Pay Controls, if applicable).

Note that the Account Auto Pay record is not added/updated until the bank account is deemed valid. The auto pay details are kept in the service task while the validation is ongoing. If the customer happens to change the bank account number while validation is in progress, the service task will be updated with the new bank account number and will transition back to the Account Validation status, to validate the new bank account number.

If the bank account is deemed valid, the Account Auto Pay is added/updated. A Person Self-Service Payment Option is also created for the main person on the account, to make that payment option available for future self-service one-time payments.

If web debit account validation processing encounters an error, the service task goes to the Account Validation Error status that includes retry processing and wait timeout processing. If the bank account is deemed invalid, the service task goes to the Rejected status.

Refer to the C1-BankAcctApaySetupTask business object in the application, for more details.

An informational message will appear above the Account Auto Pay scroll if the account has one or more pending auto pay enrollments. The Alerts sidebar zone will also highlight the pending auto pay enrollment(s) if the Highlight Pending Auto Pay Enrollment (C1PNAPAYALRT) Control Central alert algorithm is enabled. Both the informational message on Account Auto Pay and the sidebar alert navigate to the service task. If there are multiple open service tasks, the navigation will be to the most recently updated service task (based on status update date/time).

Note:

Since the Bank Account Auto Pay Setup Task is created by the Account Auto Pay row maintenance program, any other user interface (e.g., process flow) or back-end processing that calls the row maintenance program to add//update Account Auto Pays will perform this bank account validation, if needed.

Configuring the System for Web Debit Account Validation

The following are the steps to enable Web Debit Account Validation functionality:

Determine the account validation option(s) that your implementation will use.
- If opting for ACH prenotification, you can use the Web Debit Account ACH Prenotification (C1WDAPRENTF) algorithm provided in the base product. To use this algorithm:
  - Configure tender types for checking debit prenotification and savings debit prenotification. Use the applicable External Type value on each - i.e. Checking Debit Prenotification (28) or Savings Debit Prenotification (38), The auto pay extract process uses the Prenote Tender Type’s External Type as the transaction code on the Entry Detail record in the extract file.
  - Configure your checking and savings Auto Pay Sources with the applicable Prenote Tender Types.
- If opting for ACH micro-transaction verification or third partly validation, create a Web Debit Account Validation algorithm for your chosen method.
Plug in the Web Debit Account Validation on your applicable Auto Pay Route Types and CIS Division - Auto Pay Route Type Override Controls (if applicable).
To enable bank account validation on Account Auto Pay setup:
- Add a Service Task Type using the Bank Account Auto Pay Setup Task Type (C1-BankAcctApaySetupTaskType) business object and configure the settings accordingly.
- On your Financial Transaction Options feature configuration, add the Bank Account Auto Pay Setup Service Task Type option and specify the service task type that you created in the previous step.
- On the Bank Account Auto Pay Setup Task BO:
  - If using the base-supplied Web Debit Account ACH Prenotification algorithm (or a CM algorithm that allows for a wait period after which the account is considered valid), monitor logic on the Account Validation status should check if the wait time has elapsed - and if so, transition the service task accordingly. Note that the Check Account Validation Status monitor algorithms provided in the base product simply transition the service task to the next state (i.e. Process Auto Pay) when the wait time elapses. The base algorithm does not check for a negative response because the form of response is implementation-specific. If your implementation needs to check for a negative response, copy the base algorithm and add that processing. Refer to the Check Account Validation Status for Auto Pay Setup (C1APAYACVAST) algorithm for details.
  - To use the To Do creation algorithm plugged in on the Account Validation Error status, configure a new algorithm parameter instance to specify the Retry Frequency and Discard Cancel Terminate Reason (if applicable).
  - To use the retry processing on the Account Validation Error status, configure a new algorithm parameter instance to specify the Maximum Retry.
- Configure the Highlight Pending Auto Pay Enrollment (C1PNAPAYALRT) Control Central alert algorithm on Installation Options.
If your implementation will use the Add One-Time Payment UI (i.e., instead of the Payment Event - Add pop-up), configure the One-Time Payment Task feature option. Refer to One Time Payment Options for more details.
If your implementation will use self-service automatic payment and self-service one time payment business objects:
- On your Self-Service Automatic Payment Setup and One Time Payment Self-Service Task Types, set the Web Debit Account Validation flag to Yes. To use the wait timeout processing built into the Account Validation Error state, configure the Timeout Processing settings. Refer to the service task’s embedded help for more details.
- On the Self-Service Automatic Payment Setup and One Time Payment service task business objects:
  - If using the base-supplied Web Debit Account ACH Prenotification algorithm (or a CM algorithm that allows for a wait period after which the account is considered valid), monitor logic on the Account Validation status should check if the wait time has elapsed - and if so, transition the service task accordingly. Note that the Check Account Validation Status monitor algorithms provided in the base product simply transition the service tasks to the next state (i.e. Process Auto Pay, Process Payment or Process Request) when the wait time elapses. The base algorithms do not check for a negative response because the form of response is implementation-specific. If your implementation needs to check for a negative response, copy the base algorithms and add that processing. Refer to the Check Account Validation Status for One Time Payment (C1OTPACVAST) and Check Account Validation Status for Auto Pay Setup (C1APAYACVAST) algorithms for details.
  - To use the To Do creation algorithm plugged in on the Account Validation Error status, configure a new algorithm parameter instance to specify the Retry Frequency and Discard Cancel Terminate Reason (if applicable).
  - To use the retry processing on the Account Validation Error status, configure a new algorithm parameter instance to specify the Maximum Retry.