Definition
ACH payment risk models predict whether an automated clearing house payment will return (bounce) before initiation, balancing approval rates against settlement risk.
Key Points
- plaid Signal reads account transaction history in sequence to score return risk within the payment flow
- Signal 4 powered by Sequential Foundation Model: 26% more risky dollars caught at 1% decline rate in early testing (vendor-reported)
- Plaid also offers Guaranteed Payments to absorb settlement risk for merchants