What is the use of positive pay?

What is the use of positive pay?

Positive Pay is a service that provides fraud detection for checks by ensuring that only authorized checks are cleared by transmitting a list of issued checks to the bank via API, FTP, or Excel sheet upload. The system immediately notifies the bank when a check is canceled or voided, eliminating the need for manual notification. If a presented check does not match the issued check's list, it becomes an "exception item" and is returned to the sender for review and approval by fax or image of the check. This service helps companies prevent fraudulent payments, reduce fraud risks, and optimize their cash management processes.  
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