Protect your business with FSB Positive Pay!
What is Positive Pay?
Positive Pay is an automated cash management service that detects check fraud attempts made against business checking accounts. It works by comparing a list of approved checks issued by a business to actual items presented for payment against the account.
How Does Business Check Fraud Work?
Criminals print counterfeit checks using information stolen from a legitimate business. Once counterfeit checks are printed, criminals begin issuing them for payment. These checks are eventually presented to the bank and are paid resulting in financial losses for the business.
There is a way to fight this type of fraud - Positive Pay. Businesses who sign up for Positive Pay regularly present a list of issued checks to the bank through online banking. Whenever a check is presented to the bank for payment, the positive pay system compares the check number, dollar amount, and account number to the list of issued checks. If this information does not match, the bank will not pay the item until it is verified by the business.
How Can Positive Pay Benefit My Business?
Signing up for this service offers protection from losses resulting from check fraud. Many business accounts have dozens of checks clearing against them daily. It is possible a fraudulent item(s) might go unnoticed which can harm your business in several ways.
1. Funds from the account are drained so that legitimate items are unable to clear.
2. There is no regulatory protection on fraudulent items presented to a business account after 24 hours. This could cause substantial damage to cash flow and the ability to do business.
3. Since FSB requires compromised accounts to be closed. There is cost involved in replacing check stock and contacting vendors who use electronic methods in the course of conducting business with you.
Does Positive Pay Make Sense for My Business?
The service fee for Positive Pay is $50.00 monthly. Businesses should consider their check volume, their ability to create the required file, their ability to upload the file into the online banking system, and the cost involved in closing their account if it were to become compromised.
Farmers State Bank is excited to offer this service to our business customers.
If you would like more information about Positive Pay, please contact us.