The Threat The Growing Risk of Check Fraud for Businesses
Payment fraud poses a significant and evolving threat to businesses. According to the Association for Financial Professionals (AFP), a staggering 80% of organizations experienced attempted payment fraud in 2023. Checks remain a primary target, with 65% of organizations reporting check fraud activity.
Despite the decline in check-writing volume, suspicious activity reports related to checks have surged. Mail theft, targeting checks for alteration, is also on the rise. Criminals are exploiting vulnerabilities to exploit your business's financial security.
Solution What is Positive Pay and How Does it Work?
Positive Pay is a proactive fraud mitigation service that detects and prevents fraudulent or altered checks. Banks offering Positive Pay compare checks presented for payment against your company's check register daily.
The process is straightforward: when you issue checks, you provide disbursement details—check number, date, payee, and amount—to your bank. The bank then verifies each check against this information. If the details match, the check is cashed. Businesses typically have a daily deadline to approve or reject checks, providing control and peace of mind. If you do not respond the bank can implement a default decision.
“Protecting your payments can help safeguard your cash flow and your bottom line.
City National Bank
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Learn More About Fraud Protection
Visit our fraud resources center for more insights and best practices to protect your business.
Benefits Why Your Business Should Use Positive Pay
Positive Pay offers robust protection against financial losses from counterfeit or altered checks. By securing your payments, you safeguard your cash flow and protect your bottom line. It acts as an additional layer of defense, even beyond alerts like City National's fraud text alerts.
Moreover, Positive Pay allows businesses to maintain control over finances, deciding which checks are cashed. Consistent account monitoring and a second layer of review catch discrepancies quickly. With Positive Pay, you are alerted when the bank uncovers a discrepancy on a check drawn from your account.