How PositivePay Helps Reduce Check Fraud
What is Positive Pay?
While it may seem that checks are not used as often anymore, check fraud is still a big problem. And, with digital checks there is a larger chance of check fraud if you are not using a secure provider with fraud detection services. Fortunately, ValidCheck is integrated with your bank’s Positive Pay system, which is a highly effective fraud detection service that banks use to stop fraud. ValidCheck strategically uses Positive Pay to ensure that all submitted ValidChecks are not only authentic but unaltered by posting the check details to your bank immediately.
How Positive Pay Works
Positive Pay is a critical component of preventing check fraud and you should always use positive pay for check fraud prevention. Positive Pay explains how it works to prevent check fraud, “Positive Pay requires the company to send (transmit) a file of issued checks to the bank each day checks are written. When those issued checks are presented for payment at the bank, they are compared electronically against the list of transmitted checks. The check-issue file sent to the bank contains the check number, account number, issue date, and dollar amount. Sometimes the payee name is included, but is not part of the matching service. When a check is presented that does not have a “match” in the file, it becomes an “exception item”. The bank sends a fax or an image of the exception item to the client. The client reviews the image and instructs the bank to pay or return the check.
Reduce Check Fraud with Positive Pay & ValidCheck
Positive Pay’s check verification service is an extra layer of protection that helps prevent check fraud. Positive Pay elaborates on the market demand for check fraud prevention and reinforces why it is best to work with ValidCheck and Positive Pay for your eCheck needs, “Check fraud is a major financial crime, with losses in fiscal 2000 exceeding $20 billion. With advancements in inexpensive PC and desktop publishing software, the problem is increasing. The American Bankers Association reported that check fraud is growing 25 percent a year. Positive Pay helps prevent check fraud by means of a digital confirmation of checks presented for payment. When used together with a highly secure check, Positive Pay can dramatically cut fraud losses.”