How many business owners still sign all paper checks? Did you know that issuing paper checks increases fraud?
Banking institutions very rarely compare actual signatures to the signature card. Additionally, signatures can be forged very easily. To add to the lack of security of paper check issuance, every time you send out a paper check, the recipient has your full bank account number, routing number, company address, etc. This makes it very easy for fraud to occur.
Fortunately there is a solution that I recommend to all clients: Positive Pay. This feature is incredibly important at protecting your bank accounts both from internal and external fraud.
The positive pay service is a feature that requires your banking institution to match all checks presented on your company bank account with an approved list provided by your company. If a check is presented to your bank and you have not included the check as approved, then the bank sends you an exception that requires to be decisioned. If if is fraud, you can simply reject it and the bank will not pay the check.
A similar service is provided for ACH (automated clearing house) transactions that are presented on your account. With positive pay you can set limits which trigger an exception or you simply approve every transaction prior to drafting.
I highly recommend this service and I am glad to speak with you further to work with your banking institution and get this critical safety valve in place!