Positive pay reduces potential check fraud by matching account number, check number, and dollar amounts of each check presented for payment against the electronic records of checks provided by the company.

Question

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Positive pay is a service provided by banks to their customers to reduce fraudulent checks. The bank matches each check presented for payment against the electronic records of checks provided by the company, including account number, check number, and dollar amounts. If there is any discrepancy, the bank will alert the company to the potential fraud, and they can decide whether to approve or reject the payment. This helps to prevent check fraud and protect the company's finances.

Positive Pay Reduces Potential Check Fraud by Matching Account Number