Positive Pay is a service that is recommended under the ALTA Best Practices framework. This service is used to compare company issued checks to those presented for payment. The system is used as a check fraud deterrent and helps protect companies against altered and counterfeit checks.
A bank requires a client to send a file every day containing the checks written that day (check issue file upload). This file contains check numbers, account numbers, issue dates, check amounts, and sometimes payee data. The bank then keeps a record of all checks that have been issued. When a check is presented for payment, the transmitted data on the check is electronically compared to the data sent in the check issue file upload. When the presented check's data does not match the data uploaded as a check issue, it is then presented by the bank as an exception item. Banks have the ability to set up other criteria to cause a check presented as an exception item such as multiple checks with the same payee data being transmitted. Then, it is up to the client to instruct the bank to pay or return the exception item. We utilize your secure electronic banking service to aid in the reconciliation process. A file containing all of the cleared items for the previous day is downloaded and imported into their dedicated software program. The information is then compared and verified that they are valid checks for processing.
Positive Pay will function as the role of the client. When requested, we will set up the Positive Pay service with a client's bank. On a daily basis, Positively Balanced will export a check issue file from a client's reconciliation software and upload the file to the bank. Positively Balanced will log into a bank daily to review exceptions and decision for exceptions. Our Positive Pay team imports banking transactions from hundreds of banks on a daily basis by following a process that aids keeping our clients protected.