Positive Pay

Positive Pay is a financial transaction control process designed to protect businesses from check fraud. It involves the sender of a check providing the payee with additional information about the check, such as the check number, amount, and payee name, in advance of the check being sent. The payee can then compare this information to the actual check when it arrives and reject it if there are any discrepancies.

Positive Pay is typically used by businesses that receive a large volume of checks, as it can help to reduce the risk of fraud and protect against losses. It is also a good idea for businesses to use Positive Pay if they have ever been the victim of check fraud.

There are two main types of Positive Pay:

• Reconciliation Positive Pay: This is the most common type of Positive Pay. In this process, the sender of the check provides the payee with the check information in advance of the check being sent. The payee then compares this information to the actual check when it arrives and rejects it if there are any discrepancies.
• Return Positive Pay: This type of Positive Pay is used when a check has already been sent and the payee discovers a discrepancy after the fact. In this process, the payee sends the check back to the sender with a notice of the discrepancy. The sender can then investigate the discrepancy and reissue the check if necessary.

Positive Pay is a valuable tool for businesses to protect themselves from check fraud. It is a simple process that can help to reduce the risk of losses and keep businesses' finances safe.

Here are some additional details about Positive Pay:

• Positive Pay is typically used for checks that are over a certain dollar amount. The dollar amount threshold is set by the business.
• Positive Pay can be used for both paper checks and electronic checks.
• Positive Pay is not a foolproof way to prevent check fraud. However, it can help to reduce the risk of fraud and protect businesses from losses.

If you are considering using Positive Pay, it is important to talk to your bank or financial institution to learn more about the process and how it can work for your business.