function of a bank's positive pay
In addition to providing you with a method of fraud prevention on your account, the positive pay system can also double as a reconciliation tool. As a result of you providing the bank with a list of issued checks, the bank is able to generate month-end reports that can aid with the reconciliation process.
Positive pay is the leading method of check fraud deterrence available today. Ëe positive pay process entails a daily reconcilement of a company's issued checks to checks presented for payment to First American Bank to identify potentially fraudulent checks.