ACH Positive Pay is a service that allows businesses to review all incoming debits before they are cleared for deposit in a bank account. It is a tool used to combat fraud associated with electronic payments, such as direct deposit and vendor payments, which are processed through the Automated Clearing House (ACH) system. When a business signs up for ACH Positive Pay, they create a list of approved vendors, including anyone they send regular payments to. Listed vendors are cleared through positive pay to receive automatic payments, with filters including expiration dates and caps on the amount submitted in any single payment. If an electronic transaction takes place outside of this approved list, the system generates an alert allowing the business to determine whether to approve the ACH transfer.

ACH Positive Pay is not only used for ACH transfers but also for check payments. Financial institutions can sign up for the automated positive pay service to ensure that issued checks match those used for payment. For example, the service ensures that each check lists the correct check number, account number, and dollar amount. If any checks don’t pass muster in the positive pay system, it’s returned to the issuer.

ACH Positive Pay is offered by various banks, including Webster Bank, Huntington Bank, Cadence Bank, and Citizens Business Bank. The benefits of ACH Positive Pay include reduced risk of potential fraud, the ability to make pay or no pay decisions on ACH transactions identified as exceptions, and a quick, efficient, and time-saving process.