CELEBRATING 20 YEARS

Automate Positive Pay
file exchanges with banks

What is Positive Pay?

Positive Pay is a fraud protection service offered by financial institutions to safeguard against check fraud. Because businesses are vulnerable to scams like forgery and counterfeiting, check washing, and theft, many banks — including large institutions like JPMorgan Chase, Bank of America, Wells Fargo, and Citi Bank — offer Positive Pay services to safeguard funds and protect their customers. Customers that use Positive Pay services include information about the checks they have written, including details about the check number, account number, and amount. The bank then confirms authenticity against that data before making payments for the checks. If there are inconsistencies, the bank will decline to remit payment for the check and return it to the customer to determine if there was a fraud attempt or if simple human error was involved.

How can Diplomat MFT support Positive Pay?

Although financial institutions offer online portals to manually enter records of completed checks for Positive Pay, most also offer automated services for direct transmission of files containing corroborating information. Because of the sensitive nature of this data, and the complexities involved with manual encryption, it is vital that transactions handled using Positive Pay be automated and secured using SFTP transport and PGP encryption. This keeps the data safe, provides a means of authentication, and minimizes the risk of human error. PGP Encryption is really easy to action with Diplomat MFT, as it is built-in to the solution, providing automated encryption for each file transfer with just a click of a button.

Diplomat MFT users can manage Positive Pay securely and automatically, giving customers assurance that their financial transactions are protected. That is because Diplomat MFT automates PGP encryption and supports the SFTP protocol (among others) to send and receive each file and any resulting reports. You can transfer files usingDiplomat MFT from your preferred accounts payable system (QuickBooks, PeopleSoft, Sage, Xero, and others) to automate the transfer of the Positive Pay files to the right destination. Diplomat MFT also captures all process data and immediately notifies if there are any errors encountered.

How our Customers Use Diplomat MFT for Positive Pay?

A well-known Telecommunications Customer uses Diplomat MFT to automate transfers of its Positive Pay files to Wells Fargo. These files include sensitive information such as check numbers, account numbers, and monetary values that need to be encrypted with PGP and transferred over SFTP in order to maintain confidentiality and prevent check fraud.  

CHALLENGES:

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Automation: Customer used their own scripts to export files from their ERP system to their Windows Server, then the files were manually encrypted using Open PGP and pushed to the Wells Fargo Positive Pay portal. Maintaining and updating the scripts was a time-intensive task, requiring constant updates, and error prone.
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Encryption: Because file encryption was a manual process, success was dependent on employee accuracy and competence. Furthermore, the Customer’s Open PGP tool only provided partial encryption, resulting in risky transactions.

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Integration: The Customer’s scripts were written in-house, and so integration and interoperability with their ERP and Wells Fargo was not always smooth. Errors were common, and troubleshooting delayed their process, straining the digital supply chain.

SOLUTION:

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Our Customer now uses Diplomat MFT to automatically fetch files from their ERP, fully encrypt the files with built-in PGP management, and transfer the files to the Wells Fargo payment portal. Manual processes are no longer necessary, and IT doesn’t waste time updating and troubleshooting their in-house scripts.
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Job automation and scheduling ensures files are shared reliably and on-time, with end-to-end security via PGP and SFTP.
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Diplomat MFT easily integrates with ERP platforms (and any business application), conforms to common industry standards, and supports full process data capture for forensic investigation and auditability. Staff are also alerted automatically in the event of any incidents with data needed to resolve issues quickly.

RESULTS:

Time savings …
de-risking manual processes …
Compliance and security standards satisfied with one solution.
On-time delivery and reduced human error
Diplomat MFT Enterprise Edition offers unlimited workflows and scheduling to any end point.

Diplomat MFT works with Positive Pay … and just about every other business software and service available.

For more information about how Diplomat MFT can automate the processes and improve the security of transferring files to and from other products, click here. And if you don’t see your favorite software listed, just ask.

What our customers say: “Diplomat MFT integrated easily with our ERP system and conformed to the file transfer standards of our bank. It also supports more than 150 other tech integrations, really increasing its value proposition for us.”

IT Manager

June 2024

Customer Testimonial

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Choose any available time for a live, personalized session. We will take the time to understand your specific requirements and goals–from simple tasks to enterprise-level workflow management. 

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Benefits of using Positive Pay with Diplomat MFT

JPMorgan File Transfer and Automation

Secure Transfers:

Send files to financial institutions with encrypted communication protocols using the industry’s strongest cryptography. Diplomat MFT automatically sends files securely with the SFTP, PGP, and SSH Client Key Authentication.

Automate File Delivery:

Diplomat MFT’s automated processes enable team members to use their talents in more valuable ways. The automation can be scheduled, set to watch a hot folder, or triggered by the financial application or an existing job management platform, providing tremendous flexibility to go with its powerful automation. Diplomat MFT scales with you, supporting virtually unlimited concurrent and queued jobs, sending files when and where you need them automatically, with no manual intervention required even under heavy loads.

PGP Encryption:

Diplomat MFT manages the complexity of PGP encryption automatically and easily, ensuring files are secure when at rest, on-premises or in the cloud when transferring to your financial institution.

Easy to use:

Simple, no code interface that automates manual processes with complete workflow visibility, including full audit trials, file archiving and notifications.

If you have questions, please reach out to schedule a discussion and quick demonstration of Diplomat MFT. Or you can take Diplomat MFT for a free 15-day test drive with no obligations.

While Diplomat MFT (Managed File Transfer) doesn’t directly manage Positive Pay Automation, it can be a valuable asset if your Positive Pay process involves manually exchanging check data with your bank.

Imagine you need to send a file containing check information to your bank electronically. Diplomat MFT can act as a secure channel for this transfer, ensuring the data reaches its destination encrypted and protected from unauthorized access. This adds an extra layer of security to your Positive Pay workflow, especially if you’re concerned about the safety of sensitive check data during transfer.

Employs SFTP and OpenPGP encryption for highest security
Calendar exclusions prevent transfers on bank holidays
Reducing risk of human error by automating transfers
Robust scheduler for easy configuration of transfer times
Full audit trails, file archiving, and notifications
Integrates with various protocols (SFTP, FTPS, AS2, HTTPS)

FREQUENTLY ASKED QUESTIONS

What is Positive Pay automation?

Positive Pay Automation is a service offered by banks to help businesses fight check fraud. It works by electronically comparing information about issued checks with checks presented for payment.

Here’s the breakdown:

  • Companies provide a list of authorized checks to their bank, including details like check number, amount, and payee.
  • Positive Pay software at the bank then automatically verifies each check presented against this list.
  • Any discrepancy (e.g., wrong amount, payee mismatch) flags the check for review, preventing fraudulent payments.

Main benefits of Positive Pay Automation:

  • Reduced fraud risk: The biggest advantage is the significant decrease in the chances of fraudulent checks being cashed.
  • Improved cash flow management: Ensures only authorized checks are paid, leading to better control over finances.
  • Increased efficiency: Automates the check verification process, saving time and resources.
  • Reduced errors: Eliminates the possibility of human error in manually comparing checks.

Positive Pay Automation offers a strong layer of security for businesses that still rely on checks.

Is Positive Pay right for our business?

Positive Pay Automation offers a powerful shield against check fraud, but navigating its intricacies can be confusing. Here’s a breakdown to answer your questions and help you decide if it’s the right fit for your business.

Implementation and Cost: A Clear Picture

  • Getting Started: Setting up Positive Pay Automation typically takes 1-2 weeks, depending on your bank’s process and your company’s complexity. Most banks will provide training to familiarize you with the system.
  • Integration: Integration costs with your accounting software vary. Some banks offer built-in integration, while others might require a third-party solution. It’s best to inquire about integration options and associated fees with your bank.
  • The Price Tag: Positive Pay fees typically depend on your check volume. Banks often have tiered pricing structures, with higher volume leading to lower per-check costs. Be sure to get a clear quote based on your specific needs.

Functionality and Security: Taking Control

  • What’s Included?: Positive Pay files usually include data fields like check number, amount, payee name, and date. Adding information like payee address might be possible, but it depends on your bank’s system.
  • Exception Alert! When a check triggers an exception, you’ll be notified electronically, usually via email or within the Positive Pay platform. You’ll then be able to log in to a secure platform to review the flagged check and decide whether to approve or reject it.
  • False Positives? No Problem! If a legitimate check gets flagged, you can typically resolve it quickly through the platform. Most systems allow you to mark the check as authorized and prevent future flags for similar checks.
  • Beyond Checks: Positive Pay focuses on paper checks. For protection against ACH fraud, you might need a separate service specifically designed for electronic transfers.

Security and Control: Keeping Your Data Safe

  • Fort Knox for Checks: Banks use robust security measures to safeguard your check data within Positive Pay systems. These measures typically include encryption and access controls.
  • Who’s in Charge? You get to decide who in your company has access to manage Positive Pay settings. This ensures only authorized personnel can make changes to the system.
  • Granular Control: Many Positive Pay systems allow you to set specific rules for certain vendors or check amounts. For example, you might require approval for all checks exceeding a certain amount.

Positive Pay and Diplomat MFT: A Secure Connection

While Diplomat MFT (Managed File Transfer) doesn’t directly manage Positive Pay Automation, it can be a valuable asset if your Positive Pay process involves manually exchanging check data with your bank.

Imagine you need to send a file containing check information to your bank electronically. Diplomat MFT can act as a secure channel for this transfer, ensuring the data reaches its destination encrypted and protected from unauthorized access. This adds an extra layer of security to your Positive Pay workflow, especially if you’re concerned about the safety of sensitive check data during transfer.

How does Diplomat MFT integrate with accounting software?

Diplomat MFT (Managed File Transfer) can integrate with accounting software through a variety of methods. One common way to integrate with accounting software is through the use of file-based integration. In this method, Diplomat MFT can automatically transfer files between the accounting software and other systems, such as a bank’s Positive Pay system.

For example, Diplomat MFT can automatically transfer Positive Pay files generated by your accounting software (like Quickbooks, Microsoft D365, SAP, Freshbooks, Xero, JD Edwards, and more) based on the checks that are issued. These files are automatically and securely transferred to the bank for validation and processing, and Diplomat MFT can automate the download of response files generated by the bank when they are done processing.  This workflow can help to prevent check fraud and improve the overall efficiency of the payment process.

WHAT OUR CUSTOMERS SAY

G2 is the largest and most trusted software marketplace. More than 90 million people annually—including employees at all Fortune 500 companies—use G2 to make smarter software decisions based on authentic peer reviews.

Scott J.

Senior Application Engineer

Diplomat MFT has been a powerful workhorse for all of our enterprise file exchange for many years. No other enterprise application we use comes with the same level of support we receive from Coviant.

Adah B.

Senior Programmer Analyst

Extremely robust platform for managing our enterprise file transactions. Every upgrade provides us with additional useful tools to streamline our business processes.

Stephen H.

IT BI Analyst SE

I find the sftp file transfers to be the most helpful tool of Diplomat MFT. No need for programming, the interface is customized already and users only need to fill in the boxes.

Eric D.

Director of Information Technology

The support is fantastic. I had to contact them on a few occasions – as it turns out, not for issues with Diplomat MFT but issues with one of the FTP partners. Coviant support stuck with me and went above and beyond to troubleshoot and figure out the issue.

Jeff M.

IT Software Application Director

The interface and GUI are very straightforward. The options are simple and labeled so anyone can understand how to set up and configure. The ability to test something without actually sending something is also beneficial.

 
Dave L.

Manager of Information & Technology

Diplomat MFT is a solid data transfer product, its easy to set up, and easy to use. I like the way the transaction builder is laid out. It’s so easy to understand what values it wants.
Igor V.

IT Manager

I implemented Diplomat Manager File transfer as a way to enable SFTP communications with business partners. It was a year ago. I did not know anything about Diplomat MFT. However, a very knowledgeable colleague suggested I try it as a lot of his customers are using this software. I like the simplicity of setup, excellent reporting capabilities.

Mukesh C.

Head of IT

We love the seamless user experience, streamlining diplomatic tasks and enhancing efficiency. Diplomat Managed File Transfer is generally praised for its secure and efficient file transfer capabilities, user-friendly interface, and robust features that cater to the needs of businesses requiring reliable data exchange.

 
Mark K.

IT Administrator (Civic & Social Organization)

Diplomat MFT is excellent at automating SFTP and PGP and comes at a great price! Diplomat MFT is easy to learn and quite powerful in setting up automated file transfer workflows. But it is not complex at all. And the price cannot be beat! We do not have a lot of transfer jobs, but they are very important to our business and I trust Diplomat MFT to get the job done right.