Positive pay refers to online fraud mitigation tools available to protect transactions made through paper or electronic checks. In this article we are specifically looking at ACH positive pay and the way in which it can help your business protect itself.
What is ACH Positive Pay?
ACH Positive Pay is a fraud detection and prevention service that works with your bank. Using it can protect your ACH debit and credit transactions and helps you manage payments to and from your business accounts.
You can review transactions scheduled to post and prevent authorized transactions from being processed in order to protect your business against fraudulent charges that could cost you quite a bit of time and money to reverse.
How Does ACH Positive Pay Work?
By allowing you to review transactions before they post, you can protect yourself against accepting unauthorized funds or sending unauthorized payments to another entity.
When setting up ACH Positive Pay, you will establish guidelines for authorized payments to compare future incoming and outgoing transactions.
If a transaction does not fall within these authorized guidelines, you can review and cancel or clear a transaction before it posts.
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Why You Should Use ACH Positive Pay
Using a positive pay system for ACH transactions gives you an added layer of security and control.
The ACH transfer system is a safe and secure payment method, but unauthorized transactions happen. With positive pay, you can protect your business against accepting fraudulent charges or allowing scammers to issue payments from your bank account.
Rectifying payment errors can be costly and wastes time; by reducing your risk, your staff can focus on other tasks and your business can avoid unwanted charges.