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 or ACH transaction - date, payee, amount and account number - against the details of the item presented to us for posting. If any of the details don't match (a discrepancy in the amount, for example) the item is flagged and presented as an "Exception." You can then review the check or ACH transaction and determine if it should be paid or returned.
How does Positive Pay receive the check or ACH information?
Checks: after you issue a batch of checks in your accounting program, you simply export the information about those checks into a file. The file is then uploaded into Positive Pay.
ACH: your company provides Bank First with a list of pre-approved ACH transactions that are expected to post to your account. The transactions can include details such as the amount, originator name, and other relevant information.
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.