Payee Positive Pay enhances the security offered by basic Positive Pay.  Find out how it could better protect your business. 

Standard Positive Pay

Positive Pay was introduced as a service to block unauthorized checks from posting against a company’s business account.  Let’s explore how it works:

1. Businesses provide a report to their financial institution that includes information about checks they have written, such as, check number, date, amount, and account number. 
2. Once the written check is presented for cashing, the financial institution only pays if it matches information provided by the business.
3. If there are any discrepancies with check information, the financial institution sends an exception report to the business for review.
4. The business must review the report daily and decide whether to pay or reject the checks in the exception report.
    

This review process between the financial institution and business reduces check fraud and ensures that only pre-approved debits are processed.

Payee Positive Pay

While Positive Pay has been an effective form of protection, check fraud has continued to grow. As an enhancement to the existing Positive Pay service, Payee Positive Pay was implemented. In addition to doing the previously mentioned examinations, Payee Positive Pay will also check the payee name. This additional review helps to prevent altered, washed, or counterfeit checks where the payee name was fraudulently changed to divert funds. By ensuring that the payee’s name on each check matches the information provided by the issuing business, financial institutions can better prevent unauthorized payments.

In today’s world of growing check fraud and losses, businesses are strongly encouraged to use the most robust fraud detection services available to protect their accounts. New product features can further tighten preemptive fraud capabilities as fraudsters become more sophisticated in their tactics. Payee Positive Pay enables businesses to be more confident that their funds are going to the intended recipient, minimizing the chance of unauthorized payments. To learn more about Payee Positive Pay, contact your FHB banker or visit any branch.