The benefits of Positive Pay & how the service works
With real-time verification for presented checks and ACH payments, Positive Pay is more effective than other methods that may only detect fraud after it occurs.
When a business issues checks or ACH payments, it provides the bank with a list of these items. This list includes crucial details such as the check number or ACH company ID and payment amount.
As payments are presented, the bank matches these details against the list provided by the business. This verification process ensures that only authorized payments are processed.
If any discrepancies are found, such as mismatched amounts or incorrect numbers, the payment is flagged for review before it can proceed.
Suspicious payments are returned to the issuer, who decides whether to authorize or reject the payment. This step allows businesses to catch potential fraud before any money is lost.
This basic form matches the check number or ACH company ID and payment amount against a list issued by the business.
Retail businesses
Healthcare providers
Manufacturing companies
This form includes payee verification, adding a layer of security by ensuring the payee name matches a list.
Educational institutions
Real estate companies
Government agencies
Positive Pay offers numerous benefits for both banks and their business customers. Here are some key advantages:
Safeguard against unauthorized transactions: Positive Pay helps prevent unauthorized or fraudulent transactions, providing an added layer of security. This protection is crucial in an era where payment fraud can have devastating financial consequences.
Early fraud detection: By flagging suspicious payments before they are processed, Positive Pay allows businesses to detect and address fraud early, minimizing potential damage.
Increased accuracy & efficiency: By automating the verification process, Positive Pay reduces errors and streamlines payment processing. This automation means that businesses can allocate fewer resources to manual verification, focusing instead on core operations.
Streamlined reconciliation: Positive Pay simplifies the reconciliation process, making it easier to manage and track payments. Balancing accounts is now a smooth and easy process.
Minimized loss: Early detection of fraudulent payments helps businesses avoid significant financial losses. By catching fraud before it occurs, Positive Pay protects a company's bottom line.
Cost savings: By preventing fraud and reducing errors, Positive Pay can lead to substantial cost savings. These savings can be reinvested into the business, driving growth and innovation.
Minimal disruption to operations: With Positive Pay, businesses can maintain their regular operations without significant interruptions. This continuity is vital for maintaining customer satisfaction and business reputation.
Peace of mind: Knowing that an additional security measure is in place provides business owners with greater peace of mind. This assurance allows them to focus on the success of their business and other important matters instead of worrying about potential fraud.
