Positive pay is a bank fraud control service in which a business sends its bank a list of the checks it has issued, and the bank matches checks presented for payment against that list, flagging any that do not match for the business to review.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How positive pay works
With positive pay, a business that issues checks sends its bank a file listing each check, typically the check number, the amount, and the account number, often the same day the checks are written. When a check is later presented for payment, the bank compares its details against the file. If the details match, the check is paid in the normal clearing cycle. If they do not match, for example the amount differs or the check number is unknown, the bank flags the item as an exception and holds it so the business can decide whether to pay or return it. Fees and cutoff times for submitting the file vary by bank and should be checked as of 4 June 2026.
Positive pay and payee positive pay
Standard positive pay matches the check number, amount, and account number. Payee positive pay adds a check of the payee name against the name on the issued list, so a fraudster would also have to match the exact payee. This makes altered payee fraud harder to pass. Some banks also offer an equivalent control for electronic debits, often called ACH positive pay, which screens incoming batch payment debits against rules the business sets. The exact options and naming differ by bank.
Why businesses use it
Positive pay is usually offered as part of treasury management services and is aimed at businesses that still issue checks. By turning check verification into an automated match, it can catch altered or counterfeit checks before the funds leave the account. Banks may charge a fee for the service, and the business is responsible for submitting an accurate issued check file on time, so the terms and process are worth confirming with the bank.
Frequently asked questions
What is positive pay?
How does positive pay work?
What is payee positive pay?
Is there a fee for positive pay?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 4 June 2026. Confirm current terms with the provider before applying.