Positive Pay and Other Defenses Against Check Fraud

The use of positive pay systems has become the industry standard for preventing check fraud—and with good reason. Positive pay provides your bank with a file listing all the checks printed on a given day. When those checks are presented, the bank compares the checks against the list. If a check isn’t on the list, the signature or amount is incorrect, or any aspect is questionable, the bank will either notify you or return the check unpaid. “Positive pay is extraordinarily effective in…