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Positive Pay Overview: What is Positive
Pay?
What is Positive Pay?
Positive Pay is an anti-fraud service offered by commercial banks
that matches checks presented to the bank for payment with checks
that have been issued. Checks that cannot be verified by the bank
(i.e., altered in amount or forged) will not clear.
How does the bank know what checks I issued?
As you issue checks, you transmit a list to the bank containing
(at a minimum) the check numbers, issue dates, and related dollar
amounts.
What happens to checks that don't match?
Checks that do not 'match' are placed on hold as exceptions. You
are given the opportunity to review your exceptions on a daily basis.
You can then choose whether to release the check for payment, or
reject it. Further, many banks offer the ability to allow your default
action (i.e., reject) to kick in after a specified amount of time.
What happens if I write a manual check?
You have the choice to either:
--transmit the information to your bank (as an issuance), or
--release it for payment when it gets held up in the positive pay
system as an exception.
How do I sign up for the positive pay service?
Contact your bank's Cash Management Department. This may also be
called Treasury Management, Account Reconciliation or Disbursement
Services. They will provide you with the information needed to transmit
your check list.
How do I create and transmit the file to my bank?
Each bank can, and does, have unique format requirements. In fact,
some banks have multiple format requirements even within their own
company. The truth is, there are thousands of unique bank file formats.
Moreover, there are hundreds of accounting packages in the marketplace,
each with its own database and reporting designs.
As a result, the number of unique file creation and transmission
formats is staggering.
Client-side file creation and transmission software- compatible
with all major accounting packages and bank formats - allows businesses
to create and transmit check files to the bank, quickly and easily.
Treasury Software is a leading provider of client-side file creation
and transmission software for Positive Pay and ACH, as well as bank
reconciliation and custom cash management solutions. Designated
a Verified for Windows XP software application by Microsoft, Treasury
Software is a Microsoft Certified Partner. Winner of the Gold Cup
Award from CPA Software News, Treasury Software products are easy
to use, secure and cost effective.
For more information: www.TreasurySoftware.com or 866-226-5732.
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