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 initiated over an online channel such as web self-service. 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 self-service activity:

  • Automatic Payment Setup

  • Make One Time Payment

  • Manage Payment Options (wallet)

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 self-service automatic payment setup and self-service one time payment 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 an Auto Pay Clearing Staging record with the account number to verify and a zero amount. Refer to the Web Debit Account ACH Prenotification (C1WDAPRENTF) algorithm for details.

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:

  • Automatic Payment Task - WX-AutoPayTask

  • One Time Payment Task - WX-OneTimePayTask

  • Self-Service Payment Option Task - C1-PaymentOptionsTask

The 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 account number does not exist in any of the account’s saved auto pay options and in any of the saved self-service payment options of persons on the account. The account auto pay option or self-service payment option is not saved until the bank account is deemed valid. The Account Validation Error status includes algorithms for retry processing and wait timeout processing. If the account is deemed invalid, the service task goes to the Rejected status. Refer to the business object 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 confiugration for this table field includes both the enrypted and hash fields and that legacy data has both fields populated. Refer to Encrypting Sensitive Data and Encrypting Legacy Data for more details.

Validating Payment Methods Captured On Add One-Time Payment UI

The Add One-Time Payment user interface allows the capture of first-use checking/savings bank accounts. If a bank account has not been used on any prior recurring bill auto pays and prior self-service one time payments, the system will trigger web debit account validation by creating the One-Time Payment Task (C1-OneTimePaymentTask). 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.

Note that the Payment Event is kept in an Incomplete state while web debit account validation is still in progress. Lifecycle processing on the service task will either complete or delete the Payment Event, depending on the result of account validation.

Refer to the C1-OneTimePaymentTask business object in the application, for more information on the service task lifecycle processing.

Specific Transaction Codes for Checking/Savings Debit Prenotification

The APAYACH and C1-APACH batch processes 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 prenotication Tender Type’s External Type.

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 base-supplied Web Debit Account ACH Prenotification (C1WDAPRENTF) algorithm.

    • 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).

  • On your Automatic Payment Setup and One Time Payment 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 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.

  • 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 the checking and savings Auto Pay Sources with the applicable Prenote Tender Types.

  • If your implementation enabled the Add One-Time Payment UI, configure the One-Time Payment Task feature option. Refer to One Time Payment Options for more details.