Positive Pay: Your First Line of Defense Against Fraud

What is ACH?

The Automated Clearing House, or ACH, is an electronic payment network used by businesses, banks, and individuals to process direct deposits, bill payments, and electronic fund transfers (EFT). ACH transactions are widely used for recurring payments like payroll, vendor invoices, or utility bills, offering an efficient way to transfer funds securely and quickly. However, like any payment method, ACH transfers can be vulnerable to unauthorized transactions if not properly managed.

Luckily, Positive Pay provides an essential layer of protection against fraudulent ACH activity, ensuring these transactions are verified before they are processed.
 

How Does Positive Pay Work?

When you use Positive Pay, your bank helps monitor and verify payments. You submit details of issued checks or ACH payments, such as check numbers, amounts, and payee information. When a payment is presented for clearing, it is cross-referenced with the data you’ve provided. If there’s a mismatch or an unauthorized transaction, the system flags it as an exception, giving you the opportunity to review and approve or reject it.

“Positive Pay is like insurance for your accounts,” says Peoples Bank Treasury Services Director Avery Farley. “Businesses often overlook fraud prevention until it’s too late. However, implementing Positive Pay significantly reduces the risk of fraudulent transactions by providing an added layer of security and control.”
 

Features That Make a Difference

Positive Pay is more than just a safeguard; it’s a streamlined way to monitor your accounts, catch errors, and gain confidence in your cash management. Top features include:

• Check Verification: All checks are matched against the data you’ve submitted before they’re cleared. While Positive Pay is highly effective in identifying discrepancies such as altered, counterfeit, or duplicate checks, no system is entirely foolproof. Certain scenarios may still require additional vigilance or manual review to detect subtle inconsistencies.
• ACH Monitoring: Positive Pay extends its protection to your ACH transactions. You can set transaction criteria specific to your business. For example, payments to a particular vendor above a set threshold can be flagged for further authorization.
• Daily Updates: Receive a detailed report of suspicious or unauthorized transactions, helping you respond promptly and mitigate risks.
• Integrated Account Reconciliation: Positive Pay simplifies reconciliation by integrating all transactions, ensuring up-to-date records of your credits and debits.

Why Positive Pay Matters

Fraud prevention is not just about saving money; it’s about peace of mind. When your accounts are secure, you can focus on driving your business rather than worrying about financial risks. Positive Pay also minimizes the time and effort required to monitor transactions daily, making it a valuable tool for businesses of any size.

“Fraud doesn’t discriminate,” warns Farley. “Whether you’re a small business owner or a large corporation, it only takes one incident to create chaos. Positive Pay gives our customers confidence and control in a time when they need it the most.”

By implementing Positive Pay, businesses are taking a proactive approach to managing their risks. And in today's world, that’s not just a good idea; it’s a necessity.
 

Learn More

Learn more about Positive Pay and other Treasury Management solutions. Ready to get started? Contact a local branch office or call us at 877-802-1212.