What is Positive Pay?
Positive Pay is a simple and effective system for eliminating the most common types of check and ACH fraud. It works by comparing the known information about each check and ACH transaction - date, payee, amount and account number - against the details of checks or ACH transactions presented to us for posting. If any of the details don't match (a discrepancy in the amount, for example) the check or ACH transaction is flagged and presented as an "Exception." You can then review the check or ACH and determine if it should be paid or returned.
How does Positive Pay receive the check information?
After you issue a batch of checks in your accounting program or schedule an ACH payment, you simply export the information about those checks or ACH transactions into a file. The file is then uploaded into Positive Pay.
What are "Exceptions"?
Exceptions are items that are presented for posting that do not match the information you provided. For example, the amount, date, payee or account on which the item was drawn are different from what you reported.
What do I do with exceptions?
You can review the exception to determine if the item is legitimate. If it is, you instruct us to pay it. If not, you disallow payment of the item.
Do I have to review every transaction?
No. You will only need to review and act on those items that are flagged as exceptions.