How does Payee Positive Pay work?
- Enhanced Verification: When a transaction is presented, the bank checks not only the check number and amount but also verifies that the payee name matches the approved list.
- Additional Fraud Detection: This extra layer of scrutiny helps catch subtle alterations (such as a changed payee name) that might otherwise allow fraudulent payments to slip through.
Learn more: Controlled Disbursement vs Reverse Positive Pay
When organizations have visibility into upcoming disbursements, they can better manage cash flow and quickly spot any discrepancies or unauthorized checks before the funds leave their account.
Benefits of Payee Positive Pay
Increased Security: By verifying payee details, organizations gain additional assurance that funds are disbursed only to the intended recipients.
- Reduced Fraud Risk: The added verification helps prevent sophisticated fraud attempts that manipulate payee information on otherwise legitimate checks or ACH transactions.
- Stronger Internal Controls: With accurate and current payee data, companies can better manage their payment processes and tighten overall cash controls.
What's important here?
Payee Positive Pay is an enhanced fraud prevention tool that verifies not only check numbers and amounts but also the payee name to ensure payments are made to the correct recipient. When organizations add this extra layer of verification, they can reduce the risk of altered or fraudulent transactions slipping through.
Payee Positive Pay strengthens internal controls, improves payment security, and helps organizations maintain tighter oversight of their disbursements, making it a valuable addition to cash management and fraud prevention strategies.
