This secure, efficient fraud detection tool is offered to Community Bank business clients to help you prevent check fraud. This service matches the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company. All three components of the check must match exactly or it will not pay.
Positive Pay required the company to upload a file of issued checks to the bank via Treasury Management. When those issued checks are presented for payment at the bank, they are compared electronically against the list of transmitted checks. The check-issue file sent to the bank contains the check number, account number, issue date, and dollar amount.
When a check is presented that does not have a “match” in the file, it becomes an “exception item.” Each day the customer is presented with their exception items through Treasury Management. The customer has the ability to tell the bank whether to pay the item of return it to the depositing bank.