Using Positive Pay - have you had any issues?

I'm moving a client over to Positive Pay. For those who may have a different term, its when you upload a file to the bank and the bank parses the file into wires, ACH's and checks and does all the leg work of data entry. You, the authorized signer still needs to okay release of the payment vehicle. Anyone have any advice on what to look out for, little gotcha's, etc? Thanks

Answers

Ken Mason Controller • January 11, 2015

Wayne, you describe a service that goes beyond the classic Positive Pay. Positive Pay is simply the uploading of a file to validate clearing of checks that are presented to the bank. Our bank has suggested the additional services of functioning as our payment processor but we have not seriously entertained the discussion.

Ernie Humphrey CTP VP, Thought Leadership • January 12, 2015

Positive Pay has several flavors. Back in the day when I was in Treasury, Classic was for checks and looked at check number and check amount. Payee Positive Pay added match to include the check payee. All flavors are designed to mitigate payment fraud. If the file you sent the bank does not exactly match items submitted for payment then your company will get an exception report/file, you then approve or deny the items in question, you can decide how long you have to address exception items, and by default you should reject the settlement of such items. Issues come when you have issues submitting your files to the bank and they may not receive or process them in a timely manner. A business with an payment volume should have positive pay on an AP bank account without exception.

Want to join the conversation? Submit an answer or ask a question by emailing us at [email protected]

Submit an answer

Using Positive Pay - have you had any issues?

Answers

Reach our audience

Related Publications