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How Positive Pay Can Help You Detect Fraud on Your Business Accounts

As businesses find quicker ways to optimize the payment process through automation, active fraud prevention is necessary to protect themselves from any suspicious activity. One of the easiest ways to eliminate the risk of losing money due to fraudulent activities on your business accounts is through a simple tool called positive pay.

What is positive pay?

Positive pay is an automated fraud detection tool offered by the treasury management services department of most banking institutions that works to prevent losses, fraud and checks for unauthorized electronic transactions. There are three types of positive pay services: check positive pay, payee positive pay and ACH positive pay. Check positive pay matches the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the business. If all three components of the check do not perfectly match, the check is not honored. If a component of the check is missing or incorrect, the bank has the option to flag the check and notify the business account representative to seek permission to clear the check if it turns out to be valid.

Payee positive pay prevents a type of fraud known as check washing, where the payee details (and often the dollar amount) of a check are erased with a variety of chemicals, then made payable to a different recipient. ACH positive pay prevents unauthorized electronic debits by monitoring all debits against a business-approved list of vendors that are paid automatically, along filters that cap the amount of money that can be paid to any one vendor.

Why business owners need positive pay

Business owners, especially of small businesses, wear so many hats that it’s nearly impossible to monitor every payment that is made from your account. Without automatic security checks like positive pay, your company’s funds are at risk of fraudulent payments, unauthorized transactions and counterfeit checks. Business owners with positive pay can review transactions and receive positive pay alerts through their desktop or mobile devices to stop fraud the day it occurs. Although this service may take some extra work to set up, it saves business owners time and energy in the long run, offering peace of mind so they can focus on serving their customers.

Positive pay helps business owners to stay one step ahead of potential fraudsters and protect their assets. Learn more about National Capital Bank’s positive pay service, as well as other online treasury management services, today.

How Positive Pay Can Help You Detect Fraud on Your Business Accounts

As businesses find quicker ways to optimize the payment process through automation, active fraud prevention is necessary to protect themselves from any suspicious activity. One of the easiest ways to eliminate the risk of losing money due to fraudulent activities on your business accounts is through a simple tool called positive pay.

What is positive pay?

Positive pay is an automated fraud detection tool offered by the treasury management services department of most banking institutions that works to prevent losses, fraud and checks for unauthorized electronic transactions. There are three types of positive pay services: check positive pay, payee positive pay and ACH positive pay. Check positive pay matches the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the business. If all three components of the check do not perfectly match, the check is not honored. If a component of the check is missing or incorrect, the bank has the option to flag the check and notify the business account representative to seek permission to clear the check if it turns out to be valid.

Payee positive pay prevents a type of fraud known as check washing, where the payee details (and often the dollar amount) of a check are erased with a variety of chemicals, then made payable to a different recipient. ACH positive pay prevents unauthorized electronic debits by monitoring all debits against a business-approved list of vendors that are paid automatically, along filters that cap the amount of money that can be paid to any one vendor.

Why business owners need positive pay

Business owners, especially of small businesses, wear so many hats that it’s nearly impossible to monitor every payment that is made from your account. Without automatic security checks like positive pay, your company’s funds are at risk of fraudulent payments, unauthorized transactions and counterfeit checks. Business owners with positive pay can review transactions and receive positive pay alerts through their desktop or mobile devices to stop fraud the day it occurs. Although this service may take some extra work to set up, it saves business owners time and energy in the long run, offering peace of mind so they can focus on serving their customers.

Positive pay helps business owners to stay one step ahead of potential fraudsters and protect their assets. Learn more about National Capital Bank’s positive pay service, as well as other online treasury management services, today.

Washington, DC

How Positive Pay Can Help You Detect Fraud on Your Business Accounts

April 1, 2022

As businesses find quicker ways to optimize the payment process through automation, active fraud prevention is necessary to protect themselves from any suspicious activity. One of the easiest ways to eliminate the risk of losing money due to fraudulent activities on your business accounts is through a simple tool called positive pay.

What is positive pay?

Positive pay is an automated fraud detection tool offered by the treasury management services department of most banking institutions that works to prevent losses, fraud and checks for unauthorized electronic transactions. There are three types of positive pay services: check positive pay, payee positive pay and ACH positive pay. Check positive pay matches the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the business. If all three components of the check do not perfectly match, the check is not honored. If a component of the check is missing or incorrect, the bank has the option to flag the check and notify the business account representative to seek permission to clear the check if it turns out to be valid.

Payee positive pay prevents a type of fraud known as check washing, where the payee details (and often the dollar amount) of a check are erased with a variety of chemicals, then made payable to a different recipient. ACH positive pay prevents unauthorized electronic debits by monitoring all debits against a business-approved list of vendors that are paid automatically, along filters that cap the amount of money that can be paid to any one vendor.

Why business owners need positive pay

Business owners, especially of small businesses, wear so many hats that it’s nearly impossible to monitor every payment that is made from your account. Without automatic security checks like positive pay, your company’s funds are at risk of fraudulent payments, unauthorized transactions and counterfeit checks. Business owners with positive pay can review transactions and receive positive pay alerts through their desktop or mobile devices to stop fraud the day it occurs. Although this service may take some extra work to set up, it saves business owners time and energy in the long run, offering peace of mind so they can focus on serving their customers.

Positive pay helps business owners to stay one step ahead of potential fraudsters and protect their assets. Learn more about National Capital Bank’s positive pay service, as well as other online treasury management services, today.

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