What is positive pay in SAP FS-LOC - Localization of Banking?

SAP Term: positive pay

• Component: FS-LOC

• Component Name: Localization of Banking

• Description: An anti-fraud service offered by banks to companies, which matches the checks presented for payment against a list of checks previously registered by the company. If there are any mismatches, banks refer checks to the check issuer for examination before making the payment.

Smart SAP Assistant

• Key Concepts: 
  Positive Pay is a feature of the FS-LOC Localization of Banking component in SAP. It is a fraud prevention tool that helps to protect businesses from check fraud. It works by comparing the checks issued by the company to the checks presented for payment. If there is a discrepancy between the two, the payment is not made and the company is alerted. 
  
  How to use it: 
  To use Positive Pay, companies must first set up a list of checks that have been issued. This list should include information such as check number, payee name, and amount. The company then sends this list to their bank. When a check is presented for payment, the bank compares it to the list provided by the company. If there is a discrepancy between the two, the payment is not made and the company is alerted. 
  
  Tips & Tricks: 
  It is important to keep your Positive Pay list up-to-date. Make sure to update it regularly with any new checks that have been issued. Additionally, make sure to review any discrepancies that are flagged by your bank and take appropriate action if necessary. 
  
  Related Information: 
  Positive Pay is just one of many fraud prevention tools available in SAP FS-LOC Localization of Banking component. Other features include Payment Blocking, Payment Authorization, and Payment Reconciliation.