Check fraud is one of the common payment frauds.In order to avoid this, ERP softwares usually go for Positive Pay file.
Frauds?
Some of the frauds that can happen with checks are
1) Changing the amount the on the check
2) Counterfeiting the checks
Positive Pay/Enhanced Positive PayIt is a mechanism that requires companies to send a text file with the list of checks issued to the bank
This flat file contain information like
1) Payee Name
2) Check Date
3) Check Amount etc.
So when the Payee takes check to the bank, bank person will match the check with the information in the flat file before releasing the funds.If any mismatch is found, an exception is raised and sent to the Company...
Frauds?
Some of the frauds that can happen with checks are
1) Changing the amount the on the check
2) Counterfeiting the checks
Positive Pay/Enhanced Positive PayIt is a mechanism that requires companies to send a text file with the list of checks issued to the bank
This flat file contain information like
1) Payee Name
2) Check Date
3) Check Amount etc.
So when the Payee takes check to the bank, bank person will match the check with the information in the flat file before releasing the funds.If any mismatch is found, an exception is raised and sent to the Company...
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