Positive Pay is a feature that is offered by many banks to help protect their customers from check fraud. The customer provides the bank with a file that contains information about issued checks within a date range. As checks are presented for payment, the bank verifies each check against the information in the customer's file.
Where to start?
Benefits of Positive Pay
Since you provide an extract file to your bank that contains the check number, check date, payee, and check amount of the checks you issued, using the Positive Pay extract in ACS can help protect you from check fraud by making sure that lost or stolen checks are not cashed. Voided checks are identified in the file that you provide to the bank so no one can cash those either.
If a check is presented for payment that does not match the extract file information, the bank does not honor the check and contacts you for instructions.
When to create a Positive Pay extract
You create a Positive Pay extract each time that you issue checks through the ACS Accounts Payable, Payroll, or General Ledger modules. Check with your bank to verify how often you should send the extract file.
Extract File Layout
Since each bank has their own file layout, you must contact each bank that you use for checking purposes to obtain a file format document which contains the field specifications for the extract file.