POSITIVE PAY Meaning and
Definition
-
Positive Pay is a banking service that helps prevent check fraud for businesses. It is a security feature designed to enhance the accuracy and security of check transactions by verifying the details of each check with the issuing company before the payment is made.
The process of Positive Pay involves a business providing their bank with detailed information about the checks they have issued. This information typically includes the check number, the date issued, and the amount. When a check is presented for payment, the bank compares the information provided by the business with the details on the check. If the information matches, the payment is made. However, if any discrepancy or mismatch is detected, the check is flagged as an exception and the business is notified for further verification before payment is processed.
This additional layer of security significantly reduces the risk of fraudulent or altered checks being cashed. Positive Pay effectively safeguards businesses against unauthorized check payments by ensuring that only authorized checks are honored. This feature is particularly important for high-value payments or businesses that frequently issue checks. By adopting Positive Pay, businesses can protect themselves from potential financial losses associated with check fraud and maintain the integrity of their financial transactions. Additionally, this service provides a sense of trust and reliability between businesses and their banking institutions, increasing the overall security and efficiency of payment processes.
Common Misspellings for POSITIVE PAY
- oositive pay
- lositive pay
- -ositive pay
- 0ositive pay
- pisitive pay
- pksitive pay
- plsitive pay
- ppsitive pay
- p0sitive pay
- p9sitive pay
- poaitive pay
- pozitive pay
- poxitive pay
- poditive pay
- poeitive pay
- powitive pay
- posutive pay
- posjtive pay
- posktive pay
- posotive pay
Etymology of POSITIVE PAY
The term "positive pay" has a straightforward etymology, derived from the combination of the words "positive" and "pay".
- "Positive" comes from the Latin word "positivus", which means "settled in fact" or "clearly laid down". It carries the connotation of certainty, assurance, or affirmation.
- "Pay" comes from the Old French word "paier", which means "to pay" or "to satisfy a debt". The term has roots in Latin "pacare", meaning "to pacify" or "to make peaceful", indicating the act of settling a financial obligation.
When these two words are combined, "positive pay" refers to a banking service or system that ensures a specific payment made from an account will only be issued when authorized or matched with specific criteria.
