JP Morgan collaborates with Nacha for authentication of ACH and blockchain accounts
In a move aimed at improving the accuracy and efficiency of the Automated Clearing House (ACH) payment network, JP Morgan's Kinexys and Phixius, managed by the National Automated Clearing House Association (Nacha), have joined forces to provide pre-validation services for bank accounts used in U.S. ACH payments.
Rob Unger, Managing Director of ACH Network Development at Nacha, stated that this collaboration would help mitigate payment fraud and reduce potential ACH returns. Kinexys's account validation capabilities, such as its Confirm service, will be integrated into the Phixius secure, peer-to-peer payment information network.
This partnership allows financial institutions and payment originators to verify bank account details in real-time before initiating ACH payments. By doing so, it reduces errors and payment failures, leading to a safer and more reliable payment processing within the ACH ecosystem.
Kinexys Liink, originally known as the Interbank Information Network, was launched by JP Morgan almost eight years ago with the aim of addressing compliance queries, especially across borders. It has since evolved to offer a range of services, including Digital Payments, intraday repurchase agreements (repo), bond issuance, and tokenized collateral.
The collaboration between Kinexys Liink and Phixius is not limited to US account validation. Phixius users can also use Liink to validate global bank accounts, making the service a valuable tool for international transactions.
Phixius, an API that enables banks to access validation information from ten different solutions, will now include Kinexys Liink as one of its validation solutions. This partnership is a two-way relationship, with Kinexys Liink using Phixius for its US account validation.
The partnership extends beyond validation services, as it also includes the use of data provided by either network. This collaboration is expected to significantly improve the accuracy and efficiency of the ACH payment network, benefiting both financial institutions and consumers alike.
[1] Nacha Press Release, "Nacha and JP Morgan's Kinexys Partner to Enhance Pre-Validation of Bank Accounts for U.S. Payments Using ACH," 2022. [2] JP Morgan Press Release, "JP Morgan's Kinexys Partners with Phixius by Nacha to Pre-Validate Bank Accounts for U.S. Payments Using ACH," 2022.
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