We want to ensure that your business is sustained in the long run. We have developed measures to quickly and accurately identify and stop fraudulent merchants and consumers. Our new accounting system, stringient credit review requirements of all merchants and affiliates, along with implementing comprehensive risk management procedures will ensure your transactions are kept safe. A brief summary of Inova Suisse's consumer and merchant fraud management practices is provided below.
Every ACH sales transaction processed by Inova Suisse undergoes various verification processes to weed out fraud and help ensure the merchant is being paid appropriately for the goods and services rendered. These practices include:
- Routing and transit/ABA number verification
- Account number structure validation
- Account number verification that covers approximately 40% of all checking accounts in the U.S.
- Proprietary positive and negative files
- In some cases, “pre-notification”, a non-monetary ACH convention where Inova Suisse sends the transaction to the RDFI to identify the account validity. This feature can be turned off for certain applications.
Merchants are required to maintain a “Holdback” with Inova Suisse at all times. These funds are kept in a separate account known as the Deferred Contingent Holdback Account, which may be commingled with funds of other merchants, and does not bear interest. Generally, the Holdback amount is set to be equivalent to approximately one month of average ACH sales dollar volume for that specific merchant.
Merchants may choose between three methods of establishing an appropriate level of deferred contingency:
- A percentage of each sale transaction withheld until the target amount is reached
- A bank Letter of Credit provided to Inova Suisse in the target amount
- A cash deposit provided to Inova Suisse in the target amount
The establishment of exposure limits is a technical requirement specified in NACHA regulations. Inova Suisse has monitoring systems that warn of extreme spikes in usage. In the event such a spike occurs for any single merchant, Inova Suisse's policy is to contact the merchant to ascertain whether the spike is an unexpected, questionable event.
The exposure limit requirement is specified in Inova Suisse's ACH Processing Agreement, based on (1) a combination of the highest volume conducted over a four-day period (to account for volume peaks), (2) a reasonable percentage of estimated uncollected items at any one time, and (3) the dollar amount of deferred contingencies -- on a per merchant basis. Inova Suisse seeks merchant agreement on the amount set, and reviews as necessary to accommodate growth in the merchant's ACH sales. Exposure limits are enforced in real-time.
Inova Suisse adheres to strict electronic payments/Internet security standards. We have security policies and procedures in place to ensure that customer account data is not compromised, including:
- 128-bit SSL encryption on all connections that transmit sensitive data
- Password-managed sites
- Multiple tiers of firewall protection
- Completely redundant Internet connections, database servers and web servers
- Secure sites for transaction capture capability on both electracash.com and electracash.net
- Meets all US and Canadian federal regulations
- Meets all NACHA banking and data security requirements
