Positive Pay Quick Reference Guide

Positive Pay is an automated fraud detection tool designed to secure your accounts against unauthorized check and ACH activity. By giving your business the power to review questionable transactions in real-time, you can confidently decide whether to approve or return them. Positive Pay does not verify funds availability (i.e. account balances) when processing checks or ACH debits.

Protection Methods

Check Positive Pay

Compares presented checks to the issued check information the company enters or uploads. A check with a different account number, check number, or amount creates an exception to review. 

How it Works

1. An authorized user adds checks issued by the company individually.
2. When a check is presented, Positive Pay compares it against the issued checks entered in the system.
3. Matching checks are automatically paid.
4. Any check that does not match, or triggers a custom rule requiring a review, creates an exception.
5. An authorized user reviews the exception and chooses to 'Pay' or 'Return' the check.

Most Common Exception Reasons

• Amount: The presented amount does not match the issued amount.
• Check Number: The check number does not match, or is outside the account's check ranges.
• Voided or Stopped: The check was voided or has a stop payment.
• Duplicate: The check was already presented.
• Invalid Date: The presented date is not valid.
• Stale: The check is older than the days the check is valid for the account.
• Amount Limits: The amount is above the maximum or below the minimum set for the account.
• Payee: The payee does not match.

⚠️ Important Note: Any exceptions not decisioned by the cutoff time will return by default unless the company settings are changed. 

Payee Positive Pay

Payee Positive Pay compares the payee name on the presented check to the payee name on the issued check. When the names do not match, an exception is created.

How to Reduce Payee Exceptions

• Ensure the payee name matches exactly on both the physical check and your issued check entry.
• Print the payee name in UPPER CASE, in black ink, with as little punctuation as possible.
• Keep the payee name to 96 characters or fewer.
• Place the payee name near the "Pay to the Order Of" line in a clear area with no other text, lines, or stamps touching it.

Reverse Positive Pay

Reverse Positive Pay helps to prevent check fraud by presenting every posted check to be decisioned by the company. 

Benefits of Reverse Positive Pay

• Ultimate Control: You review and authorize every check presented against your account before funds are released.
• Proactive Fraud Defense: Ideal for businesses that do not issue a high volume of checks or prefer not to maintain a daily issued check file.
• Reduced Risk: Dramatically lowers the risk of unauthorized or altered checks slipping through unnoticed.

⚠️ Important Note: This feature requires company authorization and must be enabled by Grasshopper Bank. To request Reverse Positive Pay, contact Client Services.

ACH Positive Pay

Compares ACH debits to the rules set by the company. A debit that does not match a rule creates an exception to review. 

How it Works

1. Establish ACH rules for originators authorized to debit your accounts.
2. When an ACH debit arrives, Positive Pay compares it to the rules set by the company.
3. A debit that matches a 'Pay' rule is automatically posted.
4. A debit that matches a 'Return' rule is automatically returned.
5. Any debit that does not match a rule creates an exception.
6. An authorized user reviews the exception and chooses to 'Pay' or 'Return' the transfer.

⚠️ Important Note: Any exceptions not decisioned by the cutoff time will return by default unless the company settings are changed. Dates and times in Positive Pay display in the time zone set for the company.

Getting Started

Accessing Positive Pay 

Online Banking

1. Log in to Online Banking
2. Select Tools in the left-hand sidebar
3. Click Positive Pay in the drop-down menu

Business Banking Mobile App

1. Login to the Business Banking app
2. Tap the More button in the navigation bar on the bottom of the screen
3. Scroll & select Positive Pay in the Login & Security menu

⚠️ Important Note: Your available tools, features, and dashboard views are tailored to your account profile, product(s), and unique online banking configuration. If Positive Pay is not visible in your Tools menu, or if you would like to activate this service for your account, please contact Client Services for assistance.

Navigating Positive Pay 

Reviewing Exceptions

Exceptions are pending check or ACH transactions that require review by an authorized user and a "Pay" or "Return" decision.

1. Select Exceptions in the navigation bar on the Positive Pay dashboard
2. Select a pending check or ACH exception that needs review
   • Check: Review the check number, presented amount, issue date, payee name, check image, and the specific mismatch reason.
   • ACH: Review the originating company, company ID, amount, SEC code, transaction code, frequency, and exception reason.
3. Select Pay or Return
   • Select a return reason, if prompted.
   • Enter a note, if required.
4. Select Submit.

⚠️ Important Note: If enabled by your company, entering a memo or reason may be required when making decisions. To prevent future exceptions from a trusted originator, simply establish an ACH rule in your settings.

Approving Decisions

If an approval rule applies to a decision, the decision is sent for approval by an authorized user. Otherwise, the decision is final. 

1. Select Exceptions in the navigation bar on the Positive Pay dashboard
   • You can also click the link in the approval alert.
2.  Select a pending check or ACH decision awaiting approval
3. Review the check image or the ACH transaction details
   • Check: Review the check number, presented amount, issue date, payee name, check image, and the specific mismatch reason.
   • ACH: Review the originating company, company ID, amount, SEC code, transaction code, frequency, and exception reason.
4.  Select Approve or change the decision
5. Confirm the decision shows as final.

⚠️ Important Note: You must submit all decisions and approvals before our daily transaction cutoff times. 

Alerts & Notifications

Authorized users can receive alerts when an exception is created or a decision needs approval.

Setting Your Preferences

• Login to Online Banking or the Business Banking app
• Navigate to the Positive Pay dashboard
• Select your profile in the far right of the navigation bar 
• Select My Info
• Choose your preferences.

Reporting & Logs

Authorized users can view detailed Positive Pay transaction history and audit logs.

Types of Reports

Types of Logs

Data Dictionaries

Notificaton Log Data Dictionary

Default Decision Log Data Dictionary

System Log Data Dictionary

Troubleshooting

Support

If you encounter any issues or need further assistance, you contact Client Services Monday-Friday 9am-9pm ET by dialing 888.895.9685 or emailing support@grasshopper.bank.

For your convenience, we also offer support via secure message or chat.