What is Positive Pay concept:

Question

Accepted Answer

Positive Pay is a fraud prevention service offered by banks to help businesses detect and prevent check fraud.

Positive Pay is a process where businesses provide their bank with a list of checks they have issued.
When a check is presented for payment, the bank compares the details of the check with the list provided by the business.
If the details match, the check is paid. If there is a discrepancy, the bank contacts the business for verification.
Positive Pay helps businesses prevent unauthorized checks from being paid and reduces the risk of check fraud.
For example, if a business issues a check for $1000, but someone alters the amount to $10,000, Positive Pay would detect the discrepancy and prevent the fraudulent check from being paid.

Accepted Answer

Positive pay is very popular AP control now a days that helps banks detect fraud by matching the company's issued check with the check presented for payment. The amount, check number and account number must all match, or the check is flagged and sent back to the issuer for review

What is Positive Pay concept:

Popular interview questions of R2R Team Lead