Positive Pay Services
Explore Positive Pay Services
In today’s digital age, where financial transactions are increasingly conducted online, businesses face a growing threat from fraud. Sunwest Bank offers a robust solution with its Positive Pay services, designed to safeguard your business against fraudulent activities involving both Checks and Automated Clearing House (ACH) transactions.
Get Started Today!
Check Positive Pay Service
Check fraud is a growing problem that all businesses need to take seriously. As criminals become more sophisticated in their methods, companies must take proactive steps to protect themselves. One highly effective tool Sunwest Bank offers in the fight against check fraud is our Check positive pay service.
What is Check Positive Pay and How Does it Work at Sunwest Bank?
Check positive pay is a fraud prevention system that matches the account number, check number, and dollar amount of each check presented for payment against a list of checks previously authorized and issued by your company. Here is a step-by-step overview of how check positive pay works at Sunwest Bank:
- When your company issues a check, you upload a “check issue file” to our online portal. The check issue file contains the check numbers, dollar amounts, and issue dates. The names of the payees are optional.
- When a check is presented for payment, we compare it against your company’s check issue file.
- If the check matches the issue file details, we clear the check for payment.
- If there is any discrepancy, such as the dollar amount or check number differing from the file, the check is flagged as an “exception item.” A notification email will be sent for the exception item and request verification on whether to pay or return the check.
- For checks you verify as unauthorized/fraudulent, we return them unpaid.
Check positive pay from Sunwest Bank gives your company an early warning of altered and counterfeit checks before they impact your cash flow or financial statements. It puts control back in your hands to catch fraudulent checks proactively through our exception reporting.
Preventing Check Positive Pay Issues
While positive pay reconciles checks after they are issued, your company plays a crucial role in prevention by:
- Securing physical check stock and limiting access.
- Using checks with built-in security features.
- Issuing checks with dual signature controls.
- Maintaining up-to-date check registers.
- Transmitting check files as soon as checks are written.
- Never send check details beyond authorized parties.
Following sound procedures and controls is vital alongside any bank fraud prevention system.
Fees for Check Positive Pay at Sunwest Bank
- Set-up fee – One-time fee of $50
- Monthly maintenance fees – Monthly fee of $65
Subject to Sunwest Bank’s Standard Approval and Underwriting Guidelines
ACH Positive Pay Service
While Check Positive Pay provides comprehensive protection against check fraud, businesses that predominantly handle electronic transactions for companies, focusing on digital security measures, ACH Positive Pay will be beneficial:
- ACH Positive Pay: Implement ACH Positive Pay to monitor and control electronic payments and debits. This service allows businesses to specify which ACH transactions are authorized, safeguarding against unauthorized electronic transactions by adding ACH Filters and/or Blocks to your accounts
- ACH Filters and Blocks: These tools prevent unauthorized ACH debits and credits by allowing only transactions that meet pre-set criteria, providing a straightforward and effective fraud prevention measure. You may choose one or the other.
For businesses that engage in both check and electronic transactions, combining Check Positive Pay with ACH Positive Pay ensures comprehensive coverage across all forms of payment, effectively minimizing the risk of fraud in all financial dealings.
Fees for ACH Positive Pay at Sunwest Bank
- Set-up fee – One-time fee of $100
- Monthly maintenance fees – Monthly fee of $85
Positive Pay Protects Your Bottom Line
Left unchecked, business check fraud drains cash flow, wrecks financials, and spirals operational costs, defending against losses and auditing breakdowns. Our positive pay solutions empower companies like yours to gain control over the integrity of checks leaving your accounts. The minimal fees for these services deliver outsized protection. Positive pay locks down unauthorized debiting and provides alerts when fraudulent checks arise. Don’t leave your company vulnerable – implement our positive pay and take your accounts off-limits to criminals.
Positive Pay Frequently Asked Questions
How do I set up a Check Positive Pay system at Sunwest Bank?
To enable Check Positive Pay, contact our Treasury Management Department to discuss and establish the necessary procedures. The setup generally involves the following steps:
- Creating an Electronic File: You’ll need to create a formatted electronic check issue file that integrates with our systems. We provide file templates and specifications to assist you.
- Scheduling File Transmissions: Determine how often and through what method you’ll send us your check issue file. This is typically done daily.
- Managing Exceptions: Establish procedures for handling exception items we report, including setting authorized contacts and decision trees for decisions on whether to pay or return the items.
Software Considerations: Consider using Positive Pay software that your accounting system might offer to automate the creation of check files. Alternatively, you might need to create files using spreadsheet programs or other formats. Once these steps are completed, your Positive Pay services will be activated, providing a crucial defense against fraudulent checks.
Is Positive Pay worth the investment for businesses?
For most businesses, the benefits of Positive Pay justify the costs, including:
- Fraud Prevention: It catches counterfeit and altered checks before they clear, protecting your cash flow.
- Loss Control: Early detection helps control losses and reduce fraud recovery efforts.
- Financial Integrity: Maintains the integrity of your financial statements by preventing fraudulent checks from being processed.
- Enhanced Oversight: Provides stronger oversight, especially when multiple employees are authorized to issue checks.
- Comprehensive Coverage: Covers paper checks and ACH transactions, offering broad protection against fraud.
How should we respond to Positive Pay exception items?
When an exception item is reported, it means a presented check differs from your check issue file. Typical responses include:
- Report and Return: If a check is suspected to be lost or stolen, report it and return the exception item.
- Verification: Contact the payee to verify the check’s validity; pay if it is legitimate.
- Internal Audit: Conduct an internal audit for any record of change to the check and update the check register as necessary.
- Fraud Investigation: Note the exception for further investigation if fraud is confirmed. Responding to exception items requires timely decisions, usually within 1 or 2 days, to ensure your business and accounts are protected efficiently.