How does Check Positive Pay work?
Check Positive Pay requires the company to send a list of authorized checks prior to issuing funds to the payees. When any of the company’s checks are presented to the bank, the checks are compared electronically against the list of transmitted checks. The check-issue files sent to the bank contain the check number, account number, issue date and dollar amount. When a check is presented that does not have a “match” in the file, it becomes an “exception item” for you to review, where you can either instruct the bank to issue payment or return the check.