Secure ACH Payments: Prometeo Unveils Ownership Check

In an increasingly digital financial landscape, the integrity and security of payment systems are paramount. The proliferation of Automated Clearing House (ACH) transactions, while facilitating swift and efficient fund transfers, has simultaneously ushered in a heightened risk of fraud and errors. Addressing this critical challenge, Uruguay-based FinTech innovator Prometeo has introduced its groundbreaking "Name Match" feature, an advanced ownership-evaluation capability integrated within its existing Bank Account Verification API. This development marks a significant stride in bolstering payment accuracy and mitigating fraudulent activities for businesses operating within the U.S. banking ecosystem.

The Imperative for Advanced Pre-Payment Controls

The financial sector is witnessing an unprecedented surge in ACH transaction volumes. While this growth signifies increased efficiency and connectivity, it concurrently elevates the susceptibility to payment fraud. Industry data indicates that a substantial majority of organizations, approximately 79%, reported experiencing attempted payment fraud in 2024. This escalating threat underscores an urgent need for robust pre-payment controls that can preemptively identify and neutralize risks. Traditional bank account verification often merely confirms the existence of an account, which, as Prometeo CEO Ximena Aleman highlights, is no longer sufficient in the current environment. The ability to ascertain the legitimate association between an account and its intended beneficiary before funds are transferred is now a critical requirement.

Introducing Prometeo's Name Match: A New Layer of Security

Prometeo's Name Match feature represents a sophisticated enhancement to the existing verification paradigm. It operates by cross-referencing a provided beneficiary name with the official account holder name on file with the bank. This crucial pre-transaction check provides businesses with a clear, real-time indicator: "Match," "Partial Match," "No Match," or "No Data." These actionable insights can then be seamlessly integrated into various operational workflows, including payout processing, new supplier or employee onboarding, and treasury management. The system leverages trusted banking network data sources, ensuring accuracy and reliability without the need for cumbersome user logins or third-party authentication interfaces.

Addressing Scalability Challenges for Enterprise Workflows

One of the distinct advantages of Prometeo's Name Match lies in its design for scalability. While login-based verification tools may suffice for individual consumers linking personal accounts, they present significant friction and inefficiency for enterprises processing thousands or even hundreds of thousands of transactions. Consider payroll processors who validate 5,000 to 20,000 accounts in a single cycle, or gig platforms managing payouts to hundreds of thousands of workers monthly. Aleman emphasizes that Name Match fully automates this workload, allowing large payers to submit batch requests and receive orchestrated ownership evaluations through Prometeo’s network of U.S. payment providers. This automation not only streamlines operations but also significantly reduces the potential for human error inherent in manual review processes.

Aligning with Industry Best Practices and Regulatory Guidance

The launch of Name Match aligns closely with the recommendations from Nacha, the governing body for the Automated Clearing House network. Nacha has consistently advocated for enhanced account validation and pre-transaction checks as essential measures to curb misdirected payments and minimize costly ACH returns. By integrating ownership-aware verification, Prometeo empowers businesses to comply with these best practices, thereby contributing to a more secure and efficient ACH network. The financial repercussions of mis-typed information, misdirected payouts, or fraudulent attempts using substituted account numbers become increasingly significant at scale; thus, proactive validation is no longer merely advantageous but a strategic imperative.

The Broader Vision: Evolution of Ownership-Aware Payments

Prometeo's innovation with Name Match builds upon its established U.S. Bank Account Verification API, which was introduced earlier in 2024. This API already provides businesses with a unified integration point for validating accounts across both the U.S. and 11 Latin American markets, covering over 1,200 financial institutions. The addition of Name Match underscores a broader industry shift towards verification models that incorporate stronger ownership signals. As payment environments increasingly move towards real-time and instant processing, the demand for clear, actionable insights generated by verification methods will intensify. Companies will seek solutions that not only improve accuracy without impeding payment flows but also offer consistency across diverse markets and payment rails.

Aleman envisions a future where ownership evaluation is complemented by additional capabilities such as risk scoring, behavioral indicators, and real-time alerts tailored to specific organizational policies. With Name Match, Prometeo is strategically broadening its infrastructure for ownership-aware payments, positioning itself at the forefront of a movement towards more secure, efficient, and intelligent financial transactions. This commitment to continuous innovation is crucial for enterprises seeking robust verification tools that operate seamlessly in the background, enabling confident and real-time decision-making in a rapidly evolving financial ecosystem.

In conclusion, Prometeo's Name Match feature addresses a critical vulnerability in modern payment systems by providing an essential layer of ownership verification. By reducing fraud, enhancing accuracy, and supporting scalability for enterprise-level operations, it represents a significant advancement in securing ACH payments and fostering greater trust within the digital economy.