Protecting financial transactions from fraudulent activities is crucial for both small businesses and commercial banking clients. In this quest for security, a powerful tool emerges: Positive Pay. Below, read our blog post on what it is and why it's a game-changer for businesses of all sizes.

What is Positive Pay?

Positive Pay is a proactive fraud detection service offered by banks to their business clients to mitigate fraudulent ACH and check transactions.

How does ACH Positive Pay Work?

Your business provides the bank with a list of authorized ACH transactions, including details such as the originator's name and ID, the [GG1] amount, and the frequency of the transactions. We’ll monitor incoming ACH transactions against the list of authorized transactions provided by you and if a transaction matches the authorized criteria, it is allowed to proceed without intervention. If a transaction does not match the authorized criteria or appears suspicious, we flag it as an exception and you are notified of the exception and given the opportunity to review and either approve or reject the transaction.

How does Check Positive Pay Work?

Check Positive Pay compares the details of checks presented for payment against a list of checks previously authorized and issued by the business. It works by verifying any discrepancies, such as check numbers, dollar amounts or payees, triggering alerts for further review and validation before payment is processed. If the check does not match the authorized criteria or appears suspicious, we flag it as an exception, and you are notified of the exception and given the opportunity to review and either approve or reject the check.

The Benefits of Positive Pay for Small Businesses
  • Enhanced Fraud Prevention: Small businesses often lack the resources to withstand financial losses due to fraud. Positive Pay provides an additional layer of defense, significantly reducing the risk of falling victim to ACH or check fraud schemes.
  • Peace of Mind: With Positive Pay in place, small business owners can rest assured that their financial transactions are being closely monitored. This peace of mind allows them to focus on core business activities without the constant worry of fraudulent attacks.
  • Cost Savings: The financial repercussions of fraud can be devastating for small businesses. Positive Pay helps mitigate these risks, potentially saving thousands of dollars that would otherwise be lost to fraudulent activities.
  • Streamlined Operations: By automating the process of fraud detection, Positive Pay streamlines operational efficiency for small businesses. Instead of manually reviewing every ACH or check, businesses can rely on the system to flag suspicious transactions, saving time and resources.
Advantages of Positive Pay for Commercial Banking Clients

In addition to the benefits previously mentioned for small businesses, commercial clients dealing with a higher volume of transactions may see even more advantages.

  • Risk Mitigation: For commercial banking clients dealing with a high volume of transactions, the risk of fraudulent activities is amplified. Positive Pay acts as a crucial tool in mitigating this risk, safeguarding the financial integrity of large-scale operations.
  • Customizable Controls: Positive Pay offers flexibility in setting parameters for fraud detection, allowing commercial banking clients to tailor the system according to their specific needs and risk tolerance levels.

In an era defined by digital connectivity and evolving threats, the importance of robust fraud prevention tools cannot be overstated. By leveraging the power of technology to detect and deter fraudulent activities, Positive Pay not only protects financial assets but also preserves the trust and integrity essential for long-term success in the world of commerce. It's a strategic imperative in the journey towards a secure and prosperous financial future.

To sign up, please contact your Relationship Manager or call our Client Support Center at 877-487-2977 to get started.

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