Positive Pay is a check and balance of items presented for payment on your company's account. It is security against check cashing fraud. An electronic file is submitted to your payroll account bank. When a payroll check is presented at your bank for cash, the bank checks your company's electronic file to be sure the check is in the file. If the check is not in the file, the bank contact's your company and denies payment to the presenter.
Fraud is preventive.
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