How to Perform Payee Name Validation using TrueChecks API - AFS

The latest update to the Treasury Check Verification System (TCVS) introduces a new payee name validation capability. This feature is now available through the TrueChecks Search API, enhancing fraud defenses by verifying both check details and payee names in real time. This guide outlines what this update means, how it works, and what steps your institution should take to integrate this powerful tool.

What is the Payee Name Validation Update?

The payee name validation feature allows financial institutions to confirm both check details and payee names, reducing fraud risk and liability. With TrueChecks Search API, this functionality provides real-time validation for Treasury checks and integrates seamlessly into existing workflows.

Key Points:

• New PayeeName Field: The PayeeName field is now part of the TrueChecks Search API (V2 and above).
• New Recommendation Reason: Payee mismatches will trigger:
  • RecommendationReasonSourceId: 6
  • RecommendationReasonId: 11
  • RecommendationReason: “Payee Name Mismatch”
• Availability: The functionality is also available in the TrueChecks Portal and batch processing.

How Payee Name Validation Works 

The system uses a “mostly exact match” logic to validate payee names:

• Example Matches: A check made out to "JANE ELIZABETH SMITH" will match if the name provided is "JANE SMITH" or "ELIZABETH SMITH."
• Example Mismatches: A mismatch will occur if a nickname (e.g., "BETH SMITH") or other significant variation is provided.

This ensures flexibility while maintaining strong fraud detection standards. 

Is There a Deadline to Implement This Update? 

There is no deadline to adopt this update. The new functionality is fully backward compatible, allowing institutions to adopt it based on their needs. 

How to Use the Payee Name Validation Feature 

1. Update Your System: Ensure your institution is using TrueChecks API V2 or above to access the PayeeName field.
2. Review API Integration: Make sure your system recognizes the new RecommendationReason fields and codes. Click here for the API Documentation. 
3. Conduct a Health Check: This is a good time to perform a “health check” on your API setup. Verify fields like “Action Taken” and “Overall Recommendation Reason” to ensure they are correctly populated for optimal functionality.

Frequently Asked Questions (FAQs) 

How do I get the V2 API Documentation?

https://api.advancedfraudsolutions.com/

Where is this functionality available?

The feature is available through the TrueChecks Search API, the TrueChecks Portal, and batch processing. Consider using the functionality across all channels to maximize fraud prevention capabilities.

What does the Payee Name Validation feature do?

The feature allows real-time verification of the payee name on Treasury checks, alerting your institution to potential mismatches that could signal fraud.

What happens if the payee name doesn’t match?

If there’s a mismatch, the system will return an OverallRecommendationReason of “Payee Name Mismatch” with SourceId 6 and Id 11, recommending that the check be held for further review.

Is there a deadline to implement this update?

The update goes live on November 18, 2024. We recommend that you update your system to incorporate this new feature as soon as possible.

Is there a cost to access this new feature?

No, there are no additional fees to access this update for TrueChecks users.

Why should I update to V2 of the API?

V2 includes the PayeeName field and other enhancements. Updating ensures you can take advantage of the latest fraud prevention tools.

Why is a “health check” recommended?

As you update your system, it’s a good opportunity to verify that other key fields, such as “Action Taken” and “Overall Recommendation Reason,” are accurate and up-to-date, ensuring optimal use of the API.

Need Assistance?

If you have any questions about implementing the Payee Name Validation feature or performing an API health check, please contact AFS Support at support@advancedfraudsolutions.com. We’re here to help ensure that your integration is seamless and effective in preventing fraud.