MassPay Validate Looks to Nail Down Cross Country Payouts – Digital Transactions
MassPay, a 7-year-old company that manages electronic payouts from companies to people in 180 countries, has launched a related but standalone service, MassPay Validate. The service, aimed at ensuring money is matched with the proper party before it’s sent, embraces both personal and business accounts and is available to companies whether or not they use MassPay for funds transfers, the Las Vegas-based company says.
The new service arrives as approximately 13% of payouts fail because of faulty account data that could have been corrected before the transaction occurred, the company says. Such failures can result from old records, entry errors, or even deliberate tampering with payment instructions, according to MassPay.
“Every failed payout has a person on the other end of it who did nothing wrong,” said Ran Grushkowsky, MassPay’s cofounder and its chief executive, in a statement. “They were told they were paid. They check, and the money isn’t there.” Grushkowky succeeded cofounder Jeffrey Katz as CEO in January. Katz remains on the company’s board.
To counter such incidents, the company says MassPay Validate offers a verification in real time before any money is sent. The verification covers account ownership and what the company calls a “confidence score” on the name match. Senders can then decide whether to go ahead with the transfer, flag it for review, or block it outright.
The service can be used at two instances, at supplier or vendor onboarding or just before a payment is initiated, MassPay says. MassPay Validate also takes account of new payment rules, including the WEB Debit rule from Nacha, which requires account verification before sending ACH transactions in the U.S.
MassPay says the service sets no minimum volumes, with validation pricing levied at what the company calls “an agreed rate.”
MassPay reported a year-over-year 408% increase in payout volume for the June quarter, with a 98% rise in revenue. It did not cite absolute figures.
