In today's rapidly growing business markets, executives have began utilizing technological advancements to gain competitive advantages. Adaptation and innovation has long been a staple in facilitating the growth of a company, but more importantly it is the driving factor for updated high-level protection and security.
What are some of the threats to this protection and security? In recent studies, it has been determined that 74% of organizations were targets of payment scams. Of these payment scams, checks and wires were among the most impacted by fraudulent activity. Every year, half a million Americans fall victim to check scams, and even more people worldwide.
With this being said, fraudulent activity prevention is extremely important to consider when strategizing in everyday business.
How can we address the issue of fraudulent activity in our most common payment methods? This question can be answered with the introduction of Positive Pay functionality in SAP Business ByDesign.
Positive pay is a fraud prevention system offered by most commercial banks to protect against altered, forged, and counterfeit checks. It checks the accuracy of a check’s account number, date, and dollar amount when the check is presented for payment.
Stay compliant with the banks
Easy data entry methods (via excel upload templates)
Keep up with the latest exchange rates
The concept is as easy as closing a door and involves the following steps.
Bank customers send a check register file containing check numbers, dates, and amounts to their bank for checks the customer has written.
When a check is presented for payment, the bank compares the presented check against the customer’s previously transmitted check information for that account.
Where there’s a discrepancy between a presented check and check file information, the bank notifies their customer through an exceptions report and withholds payment until the customer tells the bank to accept or reject the check. Positive pay is a simple but effective way to prevent check fraud. It stops criminals from cashing fraudulent checks using stolen account numbers. It also catches bad checks where the check amount has been altered or the check has an invalid date.
The Positive Pay add-on solution in SAP Business ByDesign has been created as a cost-effective solution to achieve the process shown above. This solution ultimately ties together the need for fraud prevention systems in everyday business leading to large ROI for the SAP clientele.
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