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Affirmative™'s online Internet
Check web site (AchNow.com) product is available
as a substitute for ACH Network processing software
CheckExpressNow™. AchNow.com is an Internet ASP
(Application Service Provider) cross platform
(open operating system) data entry application.
There are three different Internet
Check Application approaches - each of which serves
different payment processes. They are:
- Consumer initiated, low-risk of return, bill
payment, and low-price retail product purchase.
- Consumer initiated, high-risk of fraud and
return, high-price retail product purchase.
- Business to Business activated EFT (Debits
and Credits), Check Conversion, and RCK-NSF
Check Recovery.
An example of this application
would be a consumer paying a utility bill over
the Internet. The utility company (or any other
merchant) would be setup in advance with a secure
entry page on the merchant's web site that the
consumer accesses to enter payment information.
Since this transaction carries low risk of return,
and normally requires no verification against
a negative database, it typically is the easiest
to setup.
Information to be entered:
- Checking Account Holder's Name
- ABA (Also known as Bank Transit Number) 9
Digits
- Checking Account Number
- Payment Amount
- Check Number
- Reference Number (A number that will identify
this payment to the Merchant)
- Email address and or call back phone number
(not required).
How it works:
To provide a format for consumers
to enter payment information, your Webmaster adds
a secure page to your web site with an image of
a check explaining the 7 items to be collected
and providing a form for the collection of the
information. This form is designed as an image
of a check so the consumer can identify with the
relevant information from his or her own check.
Webmaster's Involvement Required:
Webmasters must be involved in
this process, as they will use their in-house
programming language to either gather the above
information into a database to be later queried
for transaction status, or if no database exists,
gather the information in a comma delimited text
file that is forwarded for ACH Network processing.
(Specifications for settings and technical help,
is available by contacting Affirmative Technologies)
The file containing the Consumer's payment transaction
information is then sent to the ACH Processing
Financial Institution for ACH Network processing.
This process carries more risk
for credit and fraud losses, is more complex,
and electronic processing via the ACH Network
should only be used if the merchant employs a
Consumer Authentication Service that mitigates
the potential for losses. Due to the high risk
factor associated with Internet transactions,
standard verification systems are not adequate
to protect the on-line merchant from increased
credit losses and fraud.
The key features of a Consumer
Authentication Internet gateway are the consumer
and account authentication tools that are integrated
with the site, and the way in which these tools
are used to prevent fraud, and reduce the percentage
of invalid transactions.
Here's how it works
Once the merchant's website and
shopping cart is setup, the on-line buyer is authenticated
at check out by completing a form containing payment
information along with other personal information
and identification. The information submitted
is parsed and sent to various authentication databases
for an approval response; it also verifies the
bank routing number and checking account number
for accuracy. Based on the response received,
and by using a predetermined scoring routine setup
by the merchant, the transaction is either approved
or declined.
On-line authentication is available
for eCheck or credit card transactions. An eCheck
payment option will be available within the on-line
merchant's shopping cart as an alternative to
a credit card transaction. If the buyer opts to
make an electronic payment using the eCheck option,
the transaction is routed to Affirmative's website
for processing. In either case, the on-line merchant
receives a response as to whether the transaction
was approved or declined.
Which level of authentication
the on-line merchant chooses will depend on the
value of the purchased items, and in some cases
the type of product or service purchased. See
Identity Levels below.
Integration and other technical information are
available upon request.
On-line Consumer Authorization Required
As with all electronic payments routed through
the ACH Network, consumer authorization is required.
In this case, the authentication steps are followed
by specific language that authorizes the merchant
to process an electronic payment ACH debit transaction
on behalf of the consumer. The authorization language
is followed by an "I AGREE" button which
when clicked, takes the consumer to another page
with a picture of a check. The consumer fills
in the appropriate personal payment information
and the transaction is processed.
Internet Payment Processing
Affirmative will provide a proprietary
Internet gateway, which is tied into "back-end"
processing software. This gateway provides a secure
"front end" through which on-line merchants submit
transactions, create reports, and transactions
are authenticated. The key features of Internet
gateway are the consumer and account authentication
tools that are integrated with the site, and the
way in which these tools are used to prevent fraud,
and reduce the percentage of invalid transactions
originated. Currently the Internet gateway is
fully integrated with Experian, Star Systems,
Equifax, an Address Verification Service, and
a proprietary internal database of transactions.
- Equifax - by integrating the Internet gateway
with the Equifax database, the merchant authenticates
the following items:
- Date of Birth/Drivers License Mismatch
- This database employs the algorithms used
by state governments to issue Driver License
numbers. The consumer is asked to give their
Drivers License number in addition to their
Date of Birth. The system checks to see
if the consumer has submitted accurate information.
- Negative Check Database - When the merchant
submits a transaction, it is run against
Equifax's negative check database to determine
if this consumer has negative information
on file.
- Address Verification (AVS) - The AVS accesses
phone directories nationwide in order to verify
if the consumer has submitted a phone number
and address that match.
- Experian - The Internet Gateway accesses Experian's
Checkpointâ service. This advanced database
feature actually accesses the credit file of
the consumer. After the consumer has "opted-in",
the system will quiz them on "out of wallet"
information such as which institution holds
the mortgage on their home, who their auto loan
is through, or what is their previous home address.
This quizzing feature represents the highest
level of identity verification for an Internet
transaction.
- Star Network - StarChek™ enables both physical
and virtual retailers to route check verifications,
online via the STAR Network, to the Primary
Payment Systems, Inc. (PPS) databases and determine
- in real time - whether a check is likely to
be returned. A retailer electronically transmits
the magnetic ink character recognition (MICR)
line information - obtained from the bottom
of a paper check, along with the transaction
amount - via STAR to the PPS databases, which
respond with a message on the status of the
account. The MICR line is scanned at a point
of sale location using an electronic "reader,"
or may be entered manually at a retailer's Internet
web site. StarChek™ utilizes the PPS national
"positive" database - updated daily - of account
and transaction information from more than 166
million consumer checking accounts held at participating
financial institutions.
Authentication Solutions
In the fast-paced world of today's
digital economy, the luxury of a face-to-face
transaction may not always exist. In the absence
of face-to-face interaction, authentication solutions
help to instantly verify customer identity and
conduct secure transactions while safeguarding
the business from fraud. The customizable application
consists of three powerful levels that can be
used independently or complementary, depending
on preference. As a tool to help business combat
fraud, authentication solutions can be tailored
to individual unique business needs.
| Identity One* |
| Level One authentication verifies consumer
information, including name, address, Social
Security number and telephone number. The
Level One fraud score provides a statistical
summary of more than 70 types of result
codes that can be easily used to verify
the consumer's identity. Finally, Level
One returns a standardized address with
ZIP+4 coding for deliverability confirmation.
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| Identity Two* |
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Level Two authentication
also implements a score to verify customer
identity. Utilizing an extensive database
of credit information on millions of consumers,
it predicts the likelihood that the correct
consumer supplied the information.
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| Identity Three* |
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Building on Level Two,
Level Three draws detailed information
from various databases to provide an interactive
session in which top-of-mind questions
are asked. These questions are designed
so that only the consumer can answer them.
The ability to answer these questions
within an acceptable time limit provides
the highest degree of confidence - on
the business' terms. Level Three upholds
absolute security while instilling the
business with the confidence to make prompt
and accurate decisions.
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Affirmative™'s online Internet
electronic payment web site (AchNow.com) product
is available as a substitute for ACH Network processing
software CheckExpressNow™. AchNow.com is
an Internet ASP (Application Service Provider)
cross platform (open operating system) data entry
application.
AchNow.com ACH Network processing
site can be utilized for:
- Check Conversion
- Pre-Authorized EFT Payments by consumers
- Checks by Phone
- Checks by Fax
- R-Check
- Re-presentment of NSF and Uncollected Checks
How it works:
An approved Merchant is setup
and access made available to AchNow.com with an
Account I.D., User Name and Password. A user-friendly
menu is available for the entry or importation
of check information. Transactions are manually
entered, or a file uploaded, verified and submitted
to the ACH Network Processor's ODFI. AchNow.com
provides real-time access for viewing transaction
status, and comprehensive reporting capabilities.
The file containing the consumer's
payment transaction information is then imported
into ATI software or uploaded to Affirmative™'s
Internet ACH Network processing site, AchNow.com,
and sent to the ODFI for ACH Network processing.
Returned Unpaid/Uncollected Items
As with paper checks, Internet
payments via the ACH Network can be returned as
NSF items or uncollected funds. With proper disclosure,
Check Writers can be charged a return fee (typically
$20 - $25 depending on state statue) the same
as paper checks returned as NSF items.
Internet payments are processed
as WEB items. If returned uncollected, they are
resubmitted as PPD items a second time, and if
need be, a third resubmission. Return fees are
submitted as separate PPD transactions.
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