Positive pay: frequently asked questions
Common questions about positive pay and about using a browser-based check issue file generator. These answers explain how positive pay works, what banks expect, and how this free tool builds the file your bank needs.
What is positive pay?
Positive pay is a fraud control service offered by banks. You send the bank a list of checks you have issued, usually the check number, dollar amount, account number, and sometimes the payee name. When a check is presented for payment, the bank matches it against your list and flags anything that does not match so you can decide whether to pay it. For a fuller explanation, see our guide to what positive pay is.
What is a check issue file?
A check issue file is the data file you upload to your bank that lists the checks you have written. It is the input to positive pay. Each row describes one check, typically with the account number, check number, issue date, amount, and payee. Banks accept these as either fixed-width text files or CSV files, and the exact column order is set by the bank. See what a check issue file is for more.
Does my bank require positive pay?
Most banks offer positive pay as an optional service rather than a requirement, though some commercial accounts include it or strongly encourage it. If your account has positive pay enabled, the bank will not honor checks unless they match an issue file you submitted, so you do have to send the file for checks to clear. Whether it makes sense for you depends on how many checks you write and your fraud exposure. Our do I need positive pay page walks through the decision.
Can QuickBooks export a positive pay file?
No. QuickBooks Online and QuickBooks Desktop do not produce a bank-ready positive pay file on their own. You can run a check report and export it to CSV, but that CSV is not in your bank's required layout, so it usually needs reformatting before upload. You can paste your QuickBooks check data into this tool and map it to your bank's format. See our QuickBooks positive pay guide for the steps.
How much does positive pay cost?
Pricing is set by each bank and varies. Many banks charge a monthly fee in the range of $25 to $100, and some add a small per-item charge of a few cents per check. Payee positive pay and ACH positive pay are often priced as add-ons. A few banks offer the service free to qualifying business accounts, so it is worth asking yours directly. See positive pay cost for a breakdown.
What is payee positive pay?
Payee positive pay adds the payee name to the match. In addition to checking the check number and amount, the bank compares the payee printed on the presented check against the payee you listed in your issue file. This helps catch altered or washed checks where a fraudster changes the name but keeps the original amount. It usually requires you to include a payee column in your file. See payee positive pay for details.
What is reverse positive pay and how is it different?
With reverse positive pay, you do not send an issue file in advance. Instead, the bank sends you a daily list of checks that have been presented, and you review it and tell the bank which to pay or return. The work shifts from sending data ahead of time to reviewing presented items every day, and items you do not act on default to the bank's standard decision. Standard positive pay is generally safer because the bank matches against your list automatically. See positive pay vs reverse positive pay.
What file formats do banks use, fixed-width or CSV?
Both are common. A fixed-width file places each field at a set character position, so column order and padding matter exactly. A CSV file separates fields with commas and is more forgiving, but the column order still has to match what the bank expects. The right choice is whatever your bank specifies. This tool exports both fixed-width and CSV, and you can compare them on our fixed-width vs CSV page.
How are void checks handled in a positive pay file?
Most bank formats include a void or transaction-type field so each row is marked as either an issued check or a void. Listing a void tells the bank not to honor that check number if it is presented. The exact code differs by bank, often a single character like V for void and I for issue. This tool lets you mark rows as void and outputs the code your format uses. See handling void checks in positive pay.
What are submission cutoff times?
Banks set a daily cutoff time for two things: uploading your issue file and deciding on exceptions. Issue files are usually expected before the business day so checks presented that day can be matched, and exception decisions often have a same-day deadline somewhere between late morning and mid-afternoon, which varies by bank. If you miss the exception cutoff, the bank applies its default decision, which is commonly to return the item. Confirm your bank's exact times, and see positive pay cutoff times.
What happens when a check does not match the file?
A check that does not match becomes an exception. The bank holds it and notifies you, and you decide whether to pay or return it before the cutoff. Mismatches can be genuine fraud, but they are often innocent, such as a check you forgot to include, a wrong amount, or a payee spelling difference. If you do not respond in time, the bank applies its default. See positive pay exceptions for how to handle them.
Why was my positive pay file rejected?
Files are usually rejected for formatting reasons, not bad data. Common causes are wrong column order, a header row the bank does not expect, dates in the wrong style, amounts with a decimal point where the bank wants implied decimals, or a row length that does not match a fixed-width spec. Check the amount format first, since many banks expect 12345 to mean $123.45. Our file rejected page lists fixes, and you can test output in the built-in validator.
What are implied decimal amounts?
An implied decimal amount drops the decimal point and assumes the last two digits are cents. So $123.45 is written as 12345 and $50.00 is written as 5000. Many fixed-width bank formats require this, and sending an amount with a literal period can cause a rejection. This tool converts amounts to whichever style your format uses. See implied decimal amounts.
Is positive pay worth it for a small business?
It depends on your check volume and risk. Check fraud remains one of the most common forms of payment fraud against businesses, and a single forged or altered check can cost more than a year of positive pay fees. If you write checks regularly, the protection usually justifies the monthly cost. If you write very few, reverse positive pay or simply moving payments to ACH may be enough. See positive pay for small business.
Is this tool safe and private with my check data?
Yes. PositivePayMaker runs entirely in your browser. Your check data is processed on your own device and is never uploaded to a server, so there is no account to create and nothing for us to store. When you generate a file, it downloads straight to your computer. You can confirm this by loading the page and then disconnecting from the internet; the generator still works.
What if my bank uses a format that is not listed?
Bank layouts are account-specific, and field positions can differ even between two customers of the same bank, so we do not guess an exact spec. If your bank's format is not one of the presets, use the custom format builder to define your own columns, order, widths, date style, and amount style from your bank's specification sheet. You can then save that layout and reuse it. The file format reference explains each field.