What is Positive Pay?

Positive Pay is an automated fraud detection tool widely used by businesses and banks. It works by the company providing a list of issued checks (check number, amount, and date) to the bank. When checks are presented for payment, the bank compares them against the issued check list and only pays those that match exactly. Any discrepancies are flagged and sent to the company for review and approval before payment, helping to prevent fraudulent or altered checks from being cashed.