Positive Pay - Definition, Examples, Pros, and Cons
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More than 8 out of 10 financial institutions are affected by payment fraud according to Association for Financial Professionals.
AFP President and CEO Jim Kaitz, "Payments fraud is a persistent problem that is only growing worse despite repeated warnings and educational efforts."
With such a high probability of fraud, it is crucial for all organizations to establish preventative steps to secure payments, including training staff members about current payment fraud practices and putting in place the tools and procedures required to protect corporate assets and data from cybercrime.
One such service that aids in the prevention of payment fraud is Positive Pay.
So let’s find out more about positive pay and how it helps organizations prevent fraud!
What is positive pay?
Online banking is becoming more practical for both individuals and companies because of technological advancements. Much of that was made possible by the Check 21 Act 2003, which enabled banks to process more checks, including digital image checks, more quickly than ever before. Although convenient, this exposes businesses and people to the risk of fraud.
Positive pay is one of the techniques utilized to stop such fraud.
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