The Positive Pay is an enhancement to Accounts Payable check payment process for Sage 500. This enhancement will give users the ability to extract check information onto a file. The system generated file extract can be submitted to a bank institution as a form of verification to eliminate check fraud. The file will contain information specifically needed for Positive Pay such as check number, account number, issue date, and dollar amount. When a check is presented to a bank for payment, the bank reviews the Positive Pay transmission to see if the check is valid. A check will only be honored if the Positive Pay transmission matches the payment details.
Positive Pay VS. ACH/EFT
Positive Pay is not to be confused with the term ‘ACH’ or ‘EFT’. Although both entities generate check information onto a file, the Positive Pay extract file is only used as a form of check verification in Sage 500. It does not create an actual payment to the bank.
The Positive Pay enhancement is available in the AP system and manual check batch process. The batch screen will function as follows:
- Click on either ‘Process Invoices for Payment’ batch screen or ‘Process Manual Checks’ batch screen. (Accounts Payable | Activities folder)
- Select a payment method of ‘Checks’. This enhancement will not function if the payment method is ‘EFT’. (See Figure 1)
- Create payment records.