Definition
Positive pay is a security feature offered by banks to detect and prevent fraud, where a company sends a list of checks it has issued to the bank to verify against presented checks.
Related Services
Banking services, fraud prevention, and cash management consulting help businesses implement positive pay systems to protect against check fraud.
Problem and Application
Positive pay helps businesses reduce the risk of check fraud by ensuring that only authorized checks are paid, but it requires accurate and timely reporting to the bank.
Conclusion
Positive pay is a valuable tool for enhancing financial security, helping businesses prevent fraudulent checks and manage cash flow effectively.
