If you run a business, you already have enough to keep an eye on without worrying about someone tampering with your checks. Yet check fraud is making a comeback, even as more of our banking moves online. In fact, checks remain one of the most targeted areas for fraud today, and small businesses are often right in the crosshairs.

Positive Pay gives businesses an additional way to catch suspicious checks before they clear an account. This treasury management service compares checks presented for payment with information you supply, so you get a chance to review anything that looks off before it’s paid.

We’ll explain how the service works and how it may help strengthen your business’s check fraud prevention efforts.

In This Article

What Business Check Fraud Can Look Like

Check fraud isn’t always the obvious forgery you might picture. A fraudulent check may look nearly identical to one issued by your business, which makes it difficult to catch during a routine account review.

Common forms of business check fraud include:

  • Stolen checks. Checks taken from the mail or a business, then cashed or deposited by someone else.
  • Check washing. Information on a legitimate check is chemically “washed” to erase the ink, so the check can be rewritten to a different name or amount.
  • Counterfeit checks. Fake checks printed using your business’s real account and routing numbers, often gathered from a stolen check.
  • Altered checks. The payee, dollar amount, or other details on a real check are changed without your business’s approval.
  • Duplicate checks. A check is copied or presented more than once to try and collect an extra payment.

Any one of these can slip past a busy team, especially when you’re writing and receiving checks every week. Positive Pay adds another review step that can help flag these before a check is paid.

What Is Positive Pay?

Positive Pay is a check fraud prevention service that compares checks presented against a business account with a list of checks the business has authorized.

When the information matches, the check moves through the normal payment process. When it doesn’t match, the transaction is flagged for review.

Positive Pay is commonly used as part of a business’s broader treasury management and account security practices. If you’re looking for more ways to manage payments and cash flow, you can also explore our Treasury Management services.

How Does Positive Pay Work?

Each time your business issues checks, you share a list of those checks with us. Depending on the service and account setup, that information may include:

  • Check number
  • Dollar amount
  • Date issued
  • Payee information

When a check is presented for payment, we compare it with the information your business provided. If everything matches, the check is processed normally. If something doesn’t match, such as an unexpected amount or a check number your business never issued, the check gets flagged for your review before any money leaves your account.

Think of it as a guest list for your checks. If a check isn’t on the list, it doesn’t get in without your say-so.

How Positive Pay Can Help Protect Your Business

The real value of Positive Pay is peace of mind. Instead of discovering a problem after the money is gone, you get the chance to catch it first. A few of the ways it can help:

  • Catches suspicious checks early, before they clear and become much harder to recover.
  • Reduces the risk of financial loss from altered, counterfeit, or unauthorized checks.
  • Saves you time by flagging only the checks that need a second look, instead of you manually reviewing every transaction.
  • Adds a layer of confidence so you can focus on running your business rather than watching your account.

Positive Pay works best as one part of a broader fraud prevention plan. It also helps to secure blank check stock, monitor account activity, limit account access, and verify any unusual payment requests.

If your business is reviewing its account setup, learn more about our business checking accounts and the tools available for managing day-to-day banking.

Explore Our Fraud Resources

Why Check Fraud Prevention Matters for Small Businesses

Larger companies often have whole finance teams dedicated to catching fraud. Most small businesses don’t have that luxury, and fraudsters know it. When the same person is sending invoices, approving payments, issuing checks, and reviewing account activity, a well-made counterfeit or altered check can be easy to miss.

Positive Pay adds an extra checkpoint without anyone having to inspect every transaction. It draws attention to the checks that may need a closer look.

That added visibility can be especially useful for businesses that:

  • Issue checks regularly
  • Have multiple employees involved in payments
  • Mail checks to customers or vendors
  • Maintain higher balances in operating accounts
  • Want stronger internal controls over outgoing payments
  • Have previously experienced attempted check fraud

The right mix of services depends on your business’s payment activity, account structure, and internal processes. Our business banking team can help you figure out whether Positive Pay or another treasury management tool fits your needs.

Frequently Asked Questions About Positive Pay

Does Positive Pay prevent all types of check fraud?

No single service can prevent every type of fraud. Positive Pay is designed to help catch certain unauthorized, altered, or counterfeit checks by comparing presented checks with the details you shared. It works best alongside regular account monitoring and good internal security habits.

What happens when Positive Pay finds a mismatch?

The check appears as an exception for an authorized user to review. You can then decide whether it should be paid or returned, following the review steps and timing for your account.

Is Positive Pay only for large companies?

Not at all. Positive Pay can be useful for businesses of many sizes, especially those that issue checks regularly or want stronger payment controls. A business banking representative can help determine whether it makes sense for your transaction volume and account activity.

Can Positive Pay identify counterfeit checks?

Positive Pay may flag a counterfeit check when its check number, amount, payee information, or other details don’t match the records you provided. Exact matching features depend on the service and account setup.

Is Positive Pay the same as monitoring my business account?

No. Account monitoring lets you review transactions that have posted or are pending. Positive Pay adds an extra check-the-checks step before they’re paid.

Talk With Our Business Banking Team

Check fraud can create real disruption for any business. The right account controls make suspicious activity easier to spot and give your team a clearer process for reviewing questionable checks.

Our team is happy to walk you through Positive Pay and the other treasury management options that may be a good fit for how you do business. That’s what community banking is all about, and it’s why we take time to help our business customers find better, safer ways to manage their money.

People you know, service you trust.

To learn more, reach out to us or stop by your local FNBCC branch.

Ask About Positive Pay

Positive Pay availability, features, review requirements, and deadlines may vary by account or service. Contact FNBCC for complete details.