what is positive pay 
the term positive pay refers to an automated cash management service used by financial institutions to deter check fraud banks use positive pay to match checks issued by companies with those it presents for payment checks that are considered suspicious are sent back to the issuer for examination the system acts as a form of insurance against fraud losses and other liabilities to the bank there is generally a charge incurred for using the positive pay system although some banks now offer the service for a reduced fee or free 