Payment fraud continues to be one of the greatest financial threats facing businesses today. As fraudsters become more sophisticated, relying on stolen checks, altered checks, and unauthorized electronic payments, businesses need stronger safeguards to protect their accounts.

First National Bank of Michigan’s Positive Pay and ACH Positive Pay services provide an added layer of security by helping businesses detect and stop fraudulent transactions before funds leave their account.

Positive Pay: Protecting Your Checks

Check fraud remains a significant concern despite the increase in digital payments. Criminals are using counterfeit checks, altered payee information, check washing, and stolen checks to target businesses of every size.

With Positive Pay, your business uploads a file of issued checks that includes details such as the check number, dollar amount, issue date, and payee. When a check is presented for payment, it is automatically compared against your issued check file. If any information does not match, the check is flagged as an exception, allowing you to review and decide whether to pay or return the item.

Benefits of Positive Pay

• Detects altered, counterfeit, and duplicate checks.
• Prevents unauthorized check payments before they clear.
• Reduces the risk of financial loss from check fraud.
• Saves time by automating the check verification process.
• Provides greater confidence that only authorized checks are paid.

ACH Positive Pay: Controlling Electronic Payments

Electronic payments are fast and convenient, but they can also be targeted by fraudsters attempting unauthorized ACH debits.

ACH Positive Pay gives your business greater control over who can electronically debit your account. When an ACH debit request is received from a company that has not been previously authorized, you are notified and can review the transaction before deciding whether to approve or reject it. Once approved, the originator can be added to your authorized list, simplifying future transactions while maintaining strong security controls.

Businesses can also establish authorization rules based on approved companies, dollar limits, or transaction types, providing even greater protection against unauthorized activity.

Benefits of ACH Positive Pay

• Blocks unauthorized ACH debit transactions.
• Gives you the ability to review suspicious transactions before they’re processed.
• Allows you to create authorized originator lists and customized payment rules.
• Helps reduce losses from electronic payment fraud.
• Provides greater visibility and control over ACH activity.

A Stronger Defense Against Fraud

No single solution can eliminate fraud, but combining strong internal controls with tools like Positive Pay and ACH Positive Pay can significantly reduce your risk. These services help businesses identify suspicious activity early, protect operating funds, and strengthen overall payment security.

If your business writes checks or receives ACH debits, now is an excellent time to evaluate whether these fraud prevention tools are part of your treasury management strategy.

To learn more about Positive Pay and ACH Positive Pay, or to enroll your business, contact First National Bank of Michigan’s Treasury Management team at treasurymanagement@fnbmichigan.bank.

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