At Union State Bank, we understand the importance of safeguarding your business accounts. Our Positive Pay service provides comprehensive fraud protection for your business, helping prevent financial losses associated with counterfeit or altered checks.
Positive Pay significantly reduces the risk of check fraud by ensuring that only checks that match your pre-approved list are processed for payment. Our service works by automatically verifying key details—such as check number, account number, payee and dollar amount—against the checks issued. If a mismatch is detected, the check is flagged, and you will receive an automated email notification to review and approve or return the item.
Positive Pay is a valuable tool, particularly for businesses that:
- Issue a high volume of checks
- Write checks to the general public
- Issue checks for large dollar amounts
• Single sign-on access through Business Online Banking
• Check Positive Pay to prevent fraudulent paper checks
• ACH Positive Pay for secure electronic transactions
• Account reconciliation tools for simplified financial management
• Payee Match Positive Pay, for enhanced fraud protection
1. Issuance Data Submission: The business provides the bank with a file containing details of all the checks they have issued. This file typically includes information such as check numbers, issue dates, payee and check amounts.
2. Verification Process: When a check is presented for payment, the bank compares the details of the check against the information in the file submitted by the business. This verification process involves scrutinizing key elements like the check number, payee and amount.
3. Exception Handling: If the details of a presented check do not match the information in the issued checks file, the check is flagged as an exception. The bank then notifies the business of these exceptions.
4. Business Review: The business reviews the flagged checks and decides whether to authorize or reject payment. This step ensures that any discrepancies are addressed before funds are disbursed.
5. Payment Decision: Based on the business’s feedback, the bank either pays the check or returns it unpaid.