Positive Pay
What is Positive Pay?
Midstates Bank's Positive Pay service is an automated check matching process, which is run out of our online Cash Management service. Your issued check list is matched to the daily paid items and exception items (i.e. items that are not contained in the check issued file you have supplied us and therefore may be fraudulent) are identified. They are then captured on a daily report and referred to you for pay/no pay instructions.
Why Use Positive Pay?
- May reduce potential exposure related to check fraud
- Identifies exception items at the time of presentment, rather than during subsequent statement reconciliation
- Copies of specific exception items can be viewed online for your review
Service Features
- Electronic matching is based on check serial number and the encoded amount
- Checks matching information on the issued check file you provide us are automatically paid
- By accessing Midstates Online, you can view the exception items report, which details the check serial number, amount and an image of the item. This information is available immediately following our nightly processing and you are required to provide the Bank with your pay/no pay instructions by 2:30 p.m.
Delivery Methods
- Your check file can be uploaded via our online Cash Management service. Items may be keyed in manually or uploaded from your accounts payable system.
- The checks issued file must be received by Midstates Bank no later than 3:00 p.m. on the day before the checks begin to clear.
Service Hours - Pay/No Pay Instructions
- Midstates Bank requires advice of your pay/no pay instructions by email by 2:30 p.m., if instructions have not been received by 3:00 p.m., the exception items will automatically be paid.
Bottom Line
Positive Pay will help you to more quickly identify potentially fraudulent and other exception items, such as an encoding error on the amount of the check, and allow you to promptly instruct Midstates Bank to return any such item(s) to the negotiating financial institution if necessary.
