Positive Pay at First Horizon National Corporation

Positive Pay is an advanced fraud-prevention service offered by First Horizon National Corporation to protect businesses against check fraud and unauthorized disbursements. Built for organizations of all sizes, Positive Pay helps reconcile issued checks with items presented for payment, enabling quick identification and remediation of suspicious activity. By combining real-time data submission, automated matching logic, and intuitive exceptions processing, this service reduces financial risk, lowers losses, and simplifies treasury operations.

How Positive Pay Works

Positive Pay operates on a simple yet effective principle: the business provides the bank with a file of issued checks (check number, account, amount, payee, and issue date), and the bank compares each presented item against that file. When a check is presented for payment and matches the details submitted by the business, it is paid automatically. If there is a discrepancy—such as an amount mismatch, number not on the issued list, or different payee—the item is flagged as an exception. The business then reviews exceptions through an online portal or via integrated workflows and instructs the bank to pay or return the item.

Core Features

• Automated File Matching: Submit issued check data electronically for automated comparison with presented items.
• Real-Time Exception Alerts: Receive timely notifications of potential issues via the bank’s treasury portal, secure messages, or batch exception files.
• Flexible Matching Rules: Configure matching criteria and tolerance thresholds for amounts, dates, and payee names to fit your operational needs.
• Exception Management Console: A centralized dashboard allows reviewers to research exceptions, view images, and decide to pay or return items.
• Integration with Treasury Systems: Supports industry-standard file formats and APIs for seamless integration with accounting and ERP systems.
• Payee Positive Pay: Additional layer of protection matching payee name to further reduce fraud exposure.
• Dual Control and Audit Trails: Enforce segregation of duties with role-based approvals and detailed activity logs for compliance and auditing.

Benefits

• Fraud Reduction: Significantly lowers risk of counterfeit, altered, or forged checks by ensuring only authorized checks are paid.
• Cost Savings: Minimizes direct losses from fraudulent items and reduces administrative costs associated with manual reconciliation and claim processing.
• Operational Efficiency: Automates routine validation tasks and consolidates exception handling into an intuitive workflow, freeing treasury staff to focus on strategic tasks.
• Improved Cash Flow Visibility: Accurate, timely matching prevents surprises and helps maintain tighter control over payable cash balances.
• Enhanced Compliance: Provides clear documentation and audit trails that support internal controls and regulatory requirements.

Implementation and Onboarding

Onboarding to Positive Pay is designed to be straightforward. First Horizon works with your treasury and IT teams to define the required data fields and file format, establish secure transmission channels, and configure matching rules tailored to your risk tolerance and check issuance patterns. Typical steps include:

1. Requirements review and workflow design.
2. Configuration of file formats (CSV, ACH-style, or bank-specific templates) and secure file transfer methods.
3. Testing with sample files to validate matching logic and exception handling.
4. User training for exception review, approvals, and reporting tools.
5. Go-live with monitoring and post-implementation support.

Security and Data Protection

Security is central to Positive Pay. Data transmissions are secured using industry-standard encryption and authentication protocols. Access to exception handling and decision-making functionality is controlled by role-based permissions and multi-factor authentication where appropriate. Detailed audit logs capture who viewed, approved, or returned an item, providing transparency and supporting regulatory compliance. Additionally, combining Positive Pay with other fraud prevention tools, such as ACH filters and account controls, produces a layered defense strategy that further reduces exposure.

Reporting and Analytics

First Horizon’s reporting capabilities offer comprehensive insights into check issuance and exceptions. Pre-built reports and customizable dashboards provide metrics such as exception rates, common discrepancy types, and time-to-resolution. These analytics help identify process weaknesses, optimize matching tolerances, and inform internal policies related to payee verification, check issuance controls, and approval workflows.

Best Practices

• Submit issued check files as close to check issuance as possible to maximize protection.
• Standardize data entry for payee names and amounts in your accounting system to reduce false exceptions.
• Use dual control for exception approvals to enforce segregation of duties.
• Combine Positive Pay with payee positive pay and ACH fraud tools for comprehensive exposure management.
• Regularly review exception trends and adjust matching rules to balance security and operational efficiency.

Who Should Use Positive Pay

Positive Pay is ideal for corporations, non-profits, government entities, and any organization that issues checks regularly and wants to protect itself from check-related fraud. It scales to meet the needs of small businesses issuing a handful of checks per month as well as large enterprises processing thousands of check disbursements.

Conclusion

Positive Pay at First Horizon National Corporation delivers a pragmatic, effective approach to check fraud prevention. By automating validation, surfacing exceptions for quick review, and providing robust reporting and security controls, the service enables organizations to safeguard funds, streamline treasury operations, and reduce the operational burden associated with check verification. With configurable rules, seamless integration options, and dedicated support during implementation, Positive Pay is a core component of a modern, risk-aware treasury strategy.

Address Bank: Memphis, Tennessee, U.S.
Bank: First Horizon National Corporation
Headquarters: Memphis
Products: Payments & Treasury
Type: Positive Pay