Bank Rejecting Payee Information in Positive Pay File

Looking to see if anyone else has clients that are getting their positive pay entries rejected by the bank when it tries to read the second line of the address?

We have two clients that are getting rejects because the positive pay export includes the Payee Name and the scanner is reading the name plus the address line 1. I'm guessing that's because it starts with an alpha character.

While sometimes they can move everything to the name field, that's not always an option.

Does anyone have a good workaround?

Thanks,

Suzanne.

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  • 0

    Our bank set positive pay up to receive date, check number, amount and account number only.  We are to include no names, addresses or anything other than those four items.  They said it is because once you start including names, etc. this type of thing will happen frequently so they avoid them altogether.

  • 0 in reply to aking

    I'm not an expert on positive pay though I think there are a few different levels - one is  the first level which just guards against a check being negotiated at an inflated amount. The next level also guards against the ole payee switcheroo.

    Our company got hit by the payee switcheroo where someone took all of our banking information ( straight off a check they somehow intercepted ). They then apparently printed a new check -- with the same check number, check date and amount. The only thing they changed was the payee. I don't know how they arranged for the forged check to eventually be negotiated. It was difficult to catch because if you just look on your bank statement you see the correct check number and amount. We only caught this when the vendor called asking where their check was and we looked at the negotiated check and noticed it had been diverted to a new address/payee.

    Once you get hit by this type of scam the bank usually requires some level of positive pay or they may invite you to bank elsewhere.

  • 0 in reply to Wayne Schulz

    We use positive pay with name checking and if we had not, we would have suffered what Wayne is describing and more than once.  Last year and the beginning of this year it was almost a weekly issue.  It got to the point that we had talks with the bank about setting up a new checking account.  Also, we have spent this year getting our vendors moved to accepting ACH payments.

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  • 0 in reply to Wayne Schulz

    We use positive pay with name checking and if we had not, we would have suffered what Wayne is describing and more than once.  Last year and the beginning of this year it was almost a weekly issue.  It got to the point that we had talks with the bank about setting up a new checking account.  Also, we have spent this year getting our vendors moved to accepting ACH payments.

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