Positive Pay FAQ

 

What is Positive Pay for checks?

Positive Pay is a fraud prevention service offered to detect and prevent check fraud. The business provides the bank with a list of checks they have issued, including check numbers, amounts, check issue dates, and payee names. When a check is presented for payment, we compare the check details against the provided list. If there’s an exception, we will email the company to review the check before payment is made.

 

 

Why should my business use Positive Pay?

Positive Pay helps protect your business from check fraud by ensuring that only authorized checks are paid. It minimizes the risk of counterfeit or altered checks being processed, giving you more control over your finances.

 

 

How does Positive Pay work for checks?

  1. Issuing Checks: When you issue checks, you will provide us with a detailed file (typically in CSV format) or manually enter the check details within online banking containing:
    • Check numbers
    • Payee names
    • Check amounts
    • Check issue dates
  2. Bank Verification: When a check is presented for payment, we will compare the details of the check against the list you provided.
  3. Exception Alerts: If any of the details (check number, amount, check issue date, or payee name) do not match, we will alert you via email.
  4. Customer Decision to Pay or Return: We will process the item based on customer decision:
    • Pay the check if it matches the details provided.
    • Return the check for review if there’s a discrepancy.

 

 

How do I submit the check details to the bank?

We provide a secure online portal through our online banking platform, allowing you to upload your check issuance data. Alternatively, you can download a file from accounting software and manually upload it to the system.  Please note this is not a direct integration.

 

 

What is the deadline for submitting my Positive Pay File?

All files must be submitted by 4:00 p.m. CST.

 

 

What is the deadline for responding to my Positive Pay Exception File?

All items must be addressed by 4:00 p.m. CST.

 

 

What happens if a check is flagged by Positive Pay?

If a check is flagged for discrepancies (such as a mismatched amount, payee name, check issue date, or check number), we will send you an email. You will need to log into online banking to review the exceptions and decide whether to approve or reject the check for payment by 4:00 p.m. CST. You can approve the check if it was issued correctly or notify us if it was a fraudulent check.

 

 

Can Positive Pay detect all types of check fraud?

Positive Pay is highly effective at preventing certain types of check fraud, such as:

  • Altered checks (e.g., changes to the payee name or check amount).
  • Counterfeit checks (e.g., checks not actually issued by your business). However, it cannot prevent fraud caused by internal theft, where employees may issue unauthorized checks or misappropriate funds.

 

 

Do I need to submit a file every time I issue checks?

Yes, for Positive Pay to work, you must submit an updated file to us whenever you issue new checks or make changes to the ones previously issued. The frequency of file submissions depends on your business’s check-issuing schedule.

 

 

Can I export a Positive Pay file from my Accounting/Bookkeeping software?

Yes, for Positive Pay to work, you must submit an updated file to us whenever you issue new checks or make changes to the ones previously issued. The frequency of file submissions depends on your business’s check-issuing schedule.  File format must be established within the online banking portal prior to first file upload.

 

 

Are there fees for using Positive Pay?

We are currently offering Positive Pay free of charge!

 

 

How can I ensure that Positive Pay is effective?

To maximize the effectiveness of Positive Pay:

  1. Always submit an accurate and up-to-date file.
  2. Review emails promptly to prevent unauthorized checks from being paid.
  3. Maintain strong internal controls to prevent fraud before it occurs.
  4. Regularly reconcile your check issuance process with our records.

 

 

What if I forget to submit a Positive Pay file?

If you forget to submit a file, we may not be able to verify your checks, increasing the risk of unauthorized checks being paid. It’s crucial to set up a system for regularly submitting files, such as automatic uploads from your accounting system, to avoid this.

 

 

Can multiple user access Positive Pay? 

Yes. Positive Pay is a part of our Peoples Bank Online Business suite.  Your business will designate an administrator for your online banking account.  The administrator can add additional authorized users with specific user permissions to enable them to use Positive Pay.  Please contact us for initial administrator setup to allow user access.

 

 

How do I stop a check after it’s been issued?

If you realize that a check needs to be canceled or stopped after it’s been issued, contact us immediately. We may be able to place a stop payment on the check, depending on its status. If the check has already been presented and processed, you may need to file a fraud claim.

 

 

Is Positive Pay a guarantee that no fraud will occur?

While Positive Pay greatly reduces the risk of check fraud, it’s not foolproof. It’s still important to regularly monitor your accounts, employ strong internal controls, and take action if any fraud alerts are triggered. Positive Pay is a tool in your overall fraud prevention strategy.

 

 

For specific details about how Positive Pay works with your business, contact us today!