Check positive pay matches the check number, amount, and account. Payee positive pay adds the payee name, which is what catches an altered check that keeps the original amount. ACH positive pay works on the debit side by allowing only pre authorized originators to pull from an account.
Positive pay validates that a payment matches what was issued. It cannot tell that the issued payment itself was directed to a fraudulent account, which is why it does not address vendor impersonation.
Common questions
No. Positive pay confirms that a payment matches the issue file, and in a redirection attack the fraudulent account details are already in that file.
Positive pay compares items against an issue file sent by the company. Reverse positive pay puts the review burden on the company, which examines presented items each day and decides what to return.
Sources and further reading
Citing this entry? Cite as Coffr, LLC and link to https://getcoffr.com/glossary/positive-pay.