How to Generate a Positive Pay Report

With Positive Pay, a business provides its bank with a list of authorized checks or electronic transactions it has issued. When a check or electronic transaction is presented for payment at the bank, the bank compares the details of the check or electronic transaction, such as the check number, date, and amount, against the information in the business's authorized list. If the details match, the check or electronic transaction is cleared and the payment is processed as usual.

However, if there is a mismatch or discrepancy between the presented check or electronic transaction and the authorized list, the bank will not clear the check or electronic transaction for payment. Instead, the bank will notify the business of the exception or discrepancy. The business can then review the details and decide whether to approve or reject the payment. This process helps prevent fraudulent or unauthorized checks or electronic transactions from being paid.

Positive Pay adds an extra layer of security to the check or electronic payment process and reduces the risk of financial loss due to check fraud. It is particularly effective in detecting counterfeit checks, altered checks, checks with forged signatures or electronic payment fraud.

It's worth noting that the exact features and procedures of Positive Pay may vary depending on the bank and the specific implementation. If you are interested in using Positive Pay for your business, it is recommended to contact your bank for more details on how they offer and administer the service.