The basics of Positive Pay are very simple:
When you issue a batch of checks through your accounting program, each check has a certain profile – the date, the amount, the payee, and the account on which the check is drawn. Those records are exported from your accounting program, and imported to the Positive Pay system.
As those checks are deposited and reach us for posting, we compare the details of the check to the details you provided when it was issued. If differences or discrepancies are found, the check is flagged, and placed in the Positive Pay “Exception” list for you to review. You can then determine whether the check should be paid or rejected.