The ease of access and use of desktop publishing tools and MICR ink and toner have enabled criminals to increase their sophistication creating fraudulent checks.
Industry estimates of total check fraud losses range as high as $50 billion annually. These losses include those absorbed by banks, businesses and individuals. The increased competitive and regulatory pressure on banks to accelerate the availability of funds (causing banks to make funds available before checks have actually cleared) has also ripened the opportunity for fraud to occur. More than 1.37 million worthless checks are in the banking system each day according estimates from industry experts.
To help prevent check fraud, virtually every US commercial bank offers Positive Pay, an anti-fraud service. Positive Pay helps protect companies against the significant risk of check fraud.
Prelude software offers Positive Pay solutions to both companies issuing checks and to banks processing checks. For companies, Prelude’s PayPilot solution provides a Positive Pay module that facilitates creating and sending an electronic list of checks (check number, check amount and Payee Name) the company has issued to the bank. The bank will then electronically reference the list upon checks being presented for payment and match each check against the list provided. If items do not match, the check will not clear and prevent potential fraud.
For banks, Prelude’s Positive Pay solution, called PayPositive, symbiotically provides the matching capability to its banking clients.
Along with creating and transmitting the Positive Pay files to the bank, PayPilot also enables query functionality to help research the check records that sent to the bank.
Banks often have their own unique file format in which data should be submitted. Frustratingly, some banks even have unique formats within the same bank brand! In addition, banks often require headers and footers containing summations, record counts and hash totals.
Prelude’s solutions enable its clients to automate the entire process, including file import and creation, and transmit the file via email, web upload or SFTP.
Prelude's Positive Pay module supports all contemporary security protocols.