ACH Positive Pay Offers Greater Fraud Protection

Fraud Protection

An Automated Clearing House (ACH) is an electronic network that provides businesses a convenient way to make payments or collect items. Many businesses use this service for direct deposit of payroll, vendor payments or cash concentration. However, because these transactions take place electronically, there can be an increased risk of fraud.

Historically, Bank SNB would compare the paid check to the customer-supplied issued check file for accounts enrolled in Check Positive Pay fraud protection. If any discrepancy were detected, it would be presented to the customer as an exception, giving them the opportunity to mark it as a return. However, new ACH Positive Pay services have been rolled out recently that enable customers to monitor their ACH transactions. These services allow you to define and review ACH transactions hitting your account, offering greater control in identifying inaccuracies.

For example, you can designate certain payers be allowed to credit, but not debit, your account. You can set threshold amounts, and any transaction that exceeds that threshold must be reviewed to determine if it should be returned. You can predetermine that any transaction that doesn’t match the established rules create an exception or be returned. Or, you can request that you be notified by email when an exception exists, so you can decide if you want to allow it only one time or create a new, ongoing rule.

This increased management can help reduce fraud, which is why some industries —  like abstract and title companies —  strongly recommend ACH Positive Pay as a best practice. Establishing rules for your ACH transactions gives you smarter and more customized ways to monitor activity on your accounts. Email to discuss how ACH Positive Pay can protect your business from fraud and give you greater control of your financial future.

This edition of Market Momentum was written by Bank SNB Director of Treasury Management, Debbie Prior.