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How does a purchasing card (P-card) program change AP payment processing? What is a virtual card and why do companies use it for payments? How are payment holds and blocks managed within the run process? How do payment runs support cash flow and working capital management? How are cross-border/foreign-currency payments handled in a payment run? How do you reconcile a payment run to the bank and the ledger? How does AP interact with treasury and cash forecasting around payment runs? How do you prevent and detect duplicate payments across payment runs?
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Accounts Payable & Receivable › Payment Runs

What is positive pay and how does it prevent payment fraud?

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Answer

Positive pay is a bank service where you send the bank a list of issued payments (check numbers, amounts, payees); the bank pays only items matching the list and flags exceptions for your review. Payee positive pay also verifies the payee name. It stops altered or counterfeit checks and unauthorized items from clearing.
Real-world example The bank flags a check presented for $9,500 that was issued for $950, catching an alteration via positive pay.

Common follow-ups: What does payee positive pay add? | How are exceptions handled?

Payment Runs Reconciliations Vendor Management
All 21 Payment Runs questions