What is Positive Pay?
Positive Pay is a check fraud prevention tool that allows you to monitor items posting to accounts and
determine to pay or return any item that does not match records of issued items.
Here is how it works:
You, as a customer uploads a file to the bank that lists all check items you have issued (outstanding checks). The file must include the check number and check amount. As items are presented for payment,
the system compares each item to the customers list. Any non matching item then becomes an
exception for the customer to decide whether to pay or return. You have three options to enter the list of outstanding checks.
File Upload - Upload a file containing a list of check items that have been dispersed. The file must include the check number and amount, but additional information can be added as long as the file is formatted correctly.
Please note that the simplest file format to do is a CSV file.
A CSV file is created within Excel®. The information is located within specific columns. In this example, the item number is found in the first column, while the item amount is found in the second column.
When saving a CSV file, change the file extension (type) to .csv, not .xls. A .xls file does not upload successfully.
Editing Upload Format
- From the Select Upload Format to Edit option, select one of the following file types:
- CSV File
- Fixed Position
2. Edit the fields, as necessary.
For date fields, select the format your date is in. If using the void option, you must also
indicate the variable for a void.
CSV File format setup
Cash Manager>Positive Pay>Edit Upload Format>CSV File and edit accordingly
You are also able to enter check information manually.
Secondly work exceptions as they are presented.
Work Positive Pay Items - Review each exception and determine if the exception must be Paid or Returned. Exception items are checks presented for payment that do not match previously uploaded checks.
Working Exception Items
Examples of exception reasons include:
- Invalid Amount
- Item Not Issued
- Voided Item
- Stale Date
- Zero Serial Number
Choose one of the following options:
- To pay items, select the check box under the Pay column.
- To return items, clear the check box under the Pay column.
If an image is available, the check number is a link to view the front and back of the presented exception check.
On a daily basis, someone needs to login to view if there are any exceptions pending to be worked.
All exceptions that are not worked will be PAID, this is the systems default setting.