What Is a Positive Pay Vendor?

A Positive Pay vendor provides technology that helps financial institutions prevent check and ACH fraud by verifying every transaction against a list of authorized payments. When a check or ACH debit is presented for payment, the Positive Pay system automatically matches its details—such as account number, check number, and amount—against a list of issued items provided by your institution. If there’s a mismatch or an unauthorized transaction, the system flags it for review before any funds are released. This process is a frontline defense against fraud and a critical component of treasury management for business accounts.

 

Why Fraud Prevention Is a Growing Challenge for Credit Unions

Credit unions and community banks face unique fraud risks:

• Resource Constraints: Credit unions often have fewer financial resources than large banks, limiting their ability to invest in advanced fraud detection tools.

• Community Ties: The personal relationships that define credit unions can sometimes lead to less stringent enforcement of security protocols, making them more vulnerable to sophisticated fraud schemes.

• Rising Losses: In 2023, 79% of credit union and community bank leaders reported fraud losses exceeding $500,000—higher than their larger counterparts.

• Targeted Attacks: Fraudsters increasingly target credit unions, exploiting both technological gaps and trust-based cultures.

 

The Strategic Role of a Positive Pay Vendor

Most financial institutions treat Positive Pay as a checkbox feature. Tru Treasury takes a different view: the right Positive Pay vendor is a strategic lever for growth. Here’s why:

• Deposit Retention: Businesses stay with institutions that protect their assets. Positive Pay solutions reduce account churn by building trust.

• Competitive Differentiation: Offering advanced check fraud tools and ACH fraud prevention positions your institution as a proactive, business-friendly partner.

• Operational Efficiency: Automated fraud detection reduces manual reviews, freeing staff for higher-value activities.

• Regulatory Compliance: Positive Pay solutions help meet compliance requirements for fraud monitoring and reporting.

 

Basic vs. Advanced Positive Pay: What’s the Difference?

 

Why it matters:
Basic Positive Pay may catch simple check fraud, but advanced solutions, like those offered by Tru Treasury, detect complex fraud patterns, cover both checks and ACH transactions, and offer real-time alerts and analytics for smarter decision-making.

 

Evaluation Criteria: How to Choose a Positive Pay Vendor

When evaluating Positive Pay vendors, credit unions and community banks should consider:

• Comprehensive Coverage: Does the vendor support both check and ACH fraud prevention?

• Payee Match Functionality: Does the solution verify payee names, not just amounts and check numbers?

• Ease of Integration: Will the Positive Pay solution integrate with your existing core and treasury management systems?

• User Experience: Is the interface intuitive for both staff and businesses?

• Real-Time Alerts & Controls: Are you notified instantly of suspicious activity? Can you set custom approval workflows?

• Vendor Support & Training: Does the vendor offer ongoing support, fraud education, and onboarding for your team?

• Reputation & Security: Is the Positive Pay vendor recognized as a trusted authority in business banking tools and fraud prevention for credit unions?

 

Strategic Benefits for Credit Unions Offering Positive Pay

1. Reduce Fraud Losses
Automated fraud detection and real-time alerts mean fewer unauthorized transactions slip through, saving your institution and your clients from costly losses.

2. Increase Deposit Retention
Businesses are more likely to keep their funds with institutions that offer robust fraud prevention tools, reducing churn and boosting long-term relationships.

3. Enhance Brand Trust
Position your credit union as a leader in treasury management for business accounts by offering advanced Positive Pay solutions.

4. Empower Your Clients
Give business members peace of mind with tools that let them monitor and approve transactions, set custom controls, and receive instant alerts5.

5. Streamline Operations
Reduce manual reviews and investigations, freeing staff to focus on growth and member service.

 

Why Tru Treasury? The Positive Pay Partner for Credit Unions or Community Bank.

Tru Treasury partners with industry-leading Positive Pay vendors to deliver robust fraud prevention for credit unions and community banks. We’re your advocate, ensuring you get the right Positive Pay solution, seamless integration, and ongoing strategic support. We don’t just help you check the box on fraud prevention, we help you turn it into a competitive advantage.

With Tru Treasury, you get:

• Advanced check and ACH fraud prevention

• Seamless integration with your core banking and treasury systems

• Real-time alerts and customizable controls

• Dedicated support and ongoing fraud education

• A partner who understands the unique challenges of your institution

 

Ready to Transform Your Fraud Prevention Strategy?

Don’t let fraudsters put your institution or your businesses at risk. Schedule a discovery call or demo with Tru Treasury today and see how the right Positive Pay vendor can help you retain deposits, reduce fraud, and position your institution as a trusted business partner. Learn more at by visiting our fraud solutions webpage here.