Positive Pay

Positive pay is an automated fraud detection tool offered by the cash management department of most financial institutions. In its simplest form, it is a service that 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 company. All three components of the check must match exactly or the bank will not honor the check.

The main tasks related to positive pay are:

• Setting up positive pay on each bank account, which is maintained in the backend system for PrismHR.
• Creating a positive pay file; see Create Positive Pay Files.
• Recreating positive pay files as needed: see Recreate Positive Pay Files.
• Producing a positive pay report: see Positive Pay File Report.