Comment by soupsranjan

Handling ACH fraud is tricky. There is no decent dispute resolution mechanism in ACH compared to what Visa/MC offer for cards. So FinTechs and their backing bank are on the hook for customer reversals for up to 60 days. In the new FinTech revolution, this is one of the most misunderstood things. Many FinTech entrepreneurs think they can put up a nice UI and offer great interest rates only to get hit by huge fraud losses as soon as they launch. I run a fraud prevention startup for FinTechs - sardine.ai - and I hear of a new FinTech hit by fraud every week.