According to stopcheckfraud.com: “71% of organizations experienced attempted or actual payments fraud in 2010.” Because of this statistic, and many similar statistics, The McGovern Consulting Group has been working hard to develop a Fraud Protection Plan for nonprofit clients, by developing an application called the Positive Pay Tool.
Generally speaking, the Positive Pay Tool works like this:
1. A positive pay file is created, which includes a record of each check’s issue date, amount, check number/account and payee name.
2. When a check reaches the bank for payment, the bank compares the check against the positive pay file. Any discrepancies in a check’s information trigger a flag that the check in question may have been altered.
3. The bank notifies its corporate customer that the discrepancy has been noted and asks the company to verify the authenticity of that check.
This process benefits nonprofits by stream lining the check deposit process, while protecting your organizations assets. This tool works with:
- Accounts Payable System Generated Checks
- Write Checks
- Cash Disbursements
- Manual Accounts Payable Checks