What is Positive Pay in NetSuite and How Does it Work?

Positive Pay is a financial fraud prevention service where an organization transmits a file containing details of all checks it has issued to its bank. The bank then uses this file to verify incoming checks, clearing only those that precisely match the pre-authorized information, typically including the payee, date, and amount. It is important to distinguish Positive Pay files, which are generated by the client and sent to the bank for fraud prevention, from bank statements or transaction feeds received from the bank, which are primarily used for bank reconciliation processes to clear checks and reconcile statements and balances. Positive Pay is widely adopted to confirm to the bank from the client, outlining both checks written and checks voided. NetSuite allows for the generation of custom Positive Pay format specifications using the EP Payment File Format functions. Organizations should obtain a specification document from their bank that outlines the required file format. Examples of banks for which custom Positive Pay formats can be created include: Silicon Valley Bank Wells Fargo 5/3rd Bank