Positive Pay — M&T Bank

Positive Pay is a powerful fraud detection and prevention service provided by M&T Bank designed to protect businesses from check and ACH fraud. It offers proactive reconciliation of items presented for payment against a list of checks and electronic payments issued by the account holder. By comparing issued items with those presented for payment, Positive Pay helps to identify unauthorized, altered, or counterfeit checks and suspicious ACH transactions before funds are disbursed. This solution is tailored for a wide range of organizations, from small and midsize businesses to larger corporations with complex treasury needs.

Key Features

• Check Positive Pay: Submit details of issued checks — check numbers, amounts, issue dates, and payee information — and receive alerts when presented items do not match the issued list.
• ACH Positive Pay: Monitor incoming ACH debit and credit transactions with the ability to accept or return suspicious or unauthorized entries based on predetermined criteria.
• Payee Positive Pay: Verify payee names on presented checks and flag discrepancies between issued payee names and those appearing on presented items.
• Real-time or near-real-time exception reporting: Receive timely notifications of mismatches, enabling rapid decision-making and reduced exposure to loss.
• Flexible exception handling: Approve, return, or hold items through an online portal or via automated workflows integrated with existing treasury processes.
• Multi-user access and role-based controls: Assign roles and permissions to segregate duties and ensure that personnel handle check and ACH exceptions according to company policy.
• Audit trail and reporting: Maintain comprehensive records of decisions, reconciliations, and user activity for compliance and internal audit purposes.

Benefits for Businesses

• Reduced fraud losses: By intercepting suspect items before payment, Positive Pay significantly lowers the risk of financial loss due to check and ACH fraud.
• Improved cash flow visibility: Accurate reconciliation and timely exception resolution help businesses maintain clearer projections of available funds.
• Operational efficiency: Automated matching and streamlined exception processes reduce manual workload and free staff to focus on higher-value tasks.
• Stronger internal controls: Role-based access and systematic exception handling support compliance with corporate governance and regulatory requirements.
• Customizable rules: Configure thresholds, match logic, and workflows to align with company policies and risk tolerance.
• Peace of mind: Knowing that issued items are monitored and verified enhances confidence in daily payment operations and treasury management.

How It Works

Positive Pay operates on a simple yet effective principle: compare what you issue with what is presented for payment. The process typically follows these steps:

1. File submission: The business submits a file of issued checks and ACH payments to M&T Bank. This file can be uploaded through the online treasury portal or integrated with accounting and ERP systems for automatic delivery.
2. Presentation matching: When items are presented for payment, the bank compares the presented details against the issued file using configured match criteria such as check number, dollar amount, and payee name.
3. Exception generation: Any presented item that does not meet the match criteria is flagged as an exception and routed for review.
4. Review and decision: Authorized users review exceptions through the portal or via automated routing. Decisions include pay, return, or hold pending further investigation.
5. Processing outcome: Based on the decision, the bank processes or returns the item and records the action in the audit trail.

Implementation and Integration

Implementing Positive Pay with M&T Bank is designed to be straightforward and flexible. M&T offers support to help clients configure file formats, choose match rules, and establish workflows that align with internal processes. Integration options include manual uploads through a secure online portal and automated file transfers via standard formats supported by corporate accounting and treasury systems.

M&T works with clients to set up role-based access, define exception handling procedures, and create reporting schedules. Training and documentation are provided to ensure staff can effectively manage exceptions and maintain the integrity of the system. Regular reviews and tune-ups are recommended to adapt rules as transaction patterns or business needs change.

Security and Compliance

Security is a foundational element of Positive Pay. M&T employs industry-standard encryption, secure transmission protocols, and rigorous authentication to protect submitted files and exception data. The service supports multi-factor authentication for portal access and enforces granular permissions to prevent unauthorized actions.

The comprehensive audit trail created by Positive Pay supports regulatory compliance and internal audit requirements. Detailed records of file submissions, exception generation, user reviews, and disposition decisions help organizations demonstrate effective control over payment processes.

Use Cases by Organization Type

• Small businesses: Benefit from automated controls that offset limited internal resources and reduce the risk of costly fraud events.
• Midsize companies: Gain improved cash visibility and streamlined reconciliation to support growing transaction volumes.
• Large corporations: Leverage advanced configuration, integration with ERP systems, and role-based workflows to manage complex treasury operations across multiple locations and business units.
• Nonprofits and government entities: Maintain stewardship of funds with strong internal controls and transparent reporting.

Getting Started

Organizations considering Positive Pay should assess current payment volumes, internal controls, and reconciliation workflows. Establishing clear policies for file submission frequency and exception response timelines will maximize the service’s effectiveness. M&T provides onboarding assistance and resources to help tailor the solution to each client’s needs.

Conclusion

Positive Pay from M&T Bank is a robust and adaptable solution for preventing check and ACH fraud while enhancing control, efficiency, and visibility over payments. By combining automated matching, flexible exception handling, and strong security measures, Positive Pay helps organizations protect assets, reduce losses, and strengthen treasury operations. Whether a small business or large enterprise, clients can rely on this service to add an essential layer of defense to their payment lifecycle.

Address Bank: One M&T Plaza Buffalo, New York, U.S.
Bank: M&T Bank
Headquarters: Buffalo
Products: Payments & Treasury
Type: Positive Pay