Quick Topic - Positive Pay
Modified on: Thu, 7 Jun, 2018 at 2:50 PM
Many banks require positive pay for fraud detection and mitigation. The positive pay process requires the company to send a file of issued checks to the bank each day checks are written. 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 typically contains the check number, bank account number, issue date, dollar amount, and occasionally the payee name. If a check is presented that does not have a "match" in the file, it becomes an "exception item". The bank will then notify you of the exception item, and the you would then instruct the bank to pay or not to pay.
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