Positive Pay Exceptions Sample Clauses
The Positive Pay Exceptions clause outlines procedures for handling discrepancies identified by a bank's positive pay system, which is designed to detect fraudulent or unauthorized checks. When a check presented for payment does not match the issuer's previously provided list of authorized checks, it is flagged as an exception. The clause typically specifies the notification process, timelines for the account holder to review and respond to exceptions, and the consequences of failing to act within the stipulated period. Its core function is to enhance security and reduce the risk of check fraud by ensuring that only authorized payments are processed.
Positive Pay Exceptions. The Positive Pay system reports to Customer any discrepancies relative to Customer’s acceptance criteria. An email is sent to the Customer daily for any presented checks that post to their account that may be termed a ‘discrepancy’ and need an exception decision. Exception Checks presented to the Bank that do not appear on or match to the Check Issue File are identified, presented to the Customer and must be “decisioned” each day. All presented checks for a Reverse Positive Pay account are treated as Exception Checks.