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Positive Pay is a cash management service offered by First State Bank to help deter check and Automated Clearing House (ACH) fraud.Here’s how it works:
The bank can match the checks and ACH payments a business issues against those presented for payment. Any payment/check considered to be potentially fraudulent is sent back to the issuing business for examination.
ABC Company issues approximately 50 checks and 20 ACH payments each
Friday. After the payments are issued, ABC Company transmits to the bank a list of the ACH payments and checks that they issued (check number and dollar amount).
Later, when the ACH/checks are presented to First State Bank for payment, the bank matches each check/ACH presented against ABC’s previously transmitted lists. If the presented numbers and amounts appear on the
previously submitted list, the check/ACH is sent through for payment. If
items do not match, the check/ACH is not cleared.
When a company signs up for Positive Pay service, they are agreeing to perform two actions:
1. They will transmit issued check/ACH files.
2. If there are any exceptions, they will research and provide a response as to whether or not to pay or return the check/ACH.
Please contact BJ Cooley at 601-671-2062 for more information on Positive Pay.