Positive pay is an automated fraud detection tool offered by the Cash Management Department of most banks. It is a service the banks provide that matches the account number, check number and dollar amount of each check presented for payment against a list of checks supplied by the company. All three components of the check must match in order for the bank to pay.
How does positive pay work?
The Positive pay feature requires the company to submit a file to the bank each day checks have been issued. When those checks are presented to the bank for payment, they are compared electronically against the list of checks the company transmitted to the bank. The file that is sent to the bank includes the three components; the check number, account number, dollar amount along with additional information such as issue date and payee name. Any check presented that does not match will be declined by the bank and is either sent back to the issuer or held and the issuer is notified.
We at Advanced Business Systems, LLC know how important it is to protect your company from check fraud. Please let us know if you would like to have this functionality added to your Dynamics NAV system.