Enhancing Fraud Prevention with Check and ACH Positive Pay

Jamie was invited to share her valuable insights on the Wrestling Payments podcast, speaking to retail, commercial, and business banking professionals, where she emphasized the critical role of Positive Pay & ACH Reporting solutions in combating fraud. In this blog, we’ll cover Jamie’s key points, highlighting how Check and ACH Positive Pay solutions are pivotal in securing financial transactions. 

“Positive Pay is designed to be a seamless solution,” Jamie stated. “It integrates backend and frontend processes, allowing financial institutions to efficiently block unauthorized transactions while providing a user-friendly experience for their account holders.”

Challenges and Solutions in Fraud Prevention

In the banking industry, there is a particular challenge around the need for better education and training in banking operations and Positive Pay solutions. Financial institutions must invest in comprehensive fraud prevention strategies to protect themselves and their clients in an increasingly digital world.

Positive Pay solutions are vital, due to their ability to automate the validation process for transactions, including ACH Notifications of Change (ACH NOCs), significantly reducing the workload for financial institution staff and minimizing human error. This not only streamlines operations but also enhances security, making it a vital tool for banking professionals.

“It’s essential to ensure that bank [and credit union] staff and their account holders understand the protections these solutions offer. This knowledge helps in making informed decisions that safeguard financial transactions.”

Financial institutions must prioritize training programs that cover the intricacies of fraud prevention tools, ensuring that their teams are well-equipped to handle the complexities of modern banking operations.

The Future of Fraud Prevention

Jamie’s insights also touched on the future of payments and fraud prevention. She noted that as consumer and business owner demands evolve, so too must the tools and strategies employed by financial institutions.

Financial institutions are not seeking solutions to offer their commercial entities – but the people behind the scenes in their back offices. The consumerization we’re seeing in other industries also is showing up in financial services for business, too.

This consumerization translates to faster, cloud-based solutions with user experience (UX) and feature functionality that is intuitive for today’s largely digital-native workforce. In fact, Generation Z, represents 40% of U.S. consumers and 25% of the U.S. workforce (and growing) making it imperative for every financial institution to pay attention to their needs and wants. This plus the fact that every day 10,000+ baby boomers reach the age of retirement, means user experience needs to be in sharp focus for financial institutions and banking service providers.

“Consumers always want the best and newest technologies. Businesses, on the other hand, are focused on making and moving money efficiently, which is why solutions like ACH Positive Pay are indispensable—they provide the necessary security without compromising on operational efficiency.”

Positive pay, as articulated by Jamie Berg, represents a crucial advancement in the fight against fraud. By integrating these solutions, financial institutions can not only protect themselves and their account holders but also build a foundation of trust and reliability in an ever-evolving digital landscape.

Get more information about how banks and credit unions can fight active fraud and prevent future fraud.

Real-World Applications of Positive Pay

Many banks and credit unions have successfully implemented these solutions, leading to a significant reduction in fraudulent transactions.

In 2023, Alkami monitored $501B in transactions with these solutions and stopped/returned $2.65B in transactions. The automated nature of ACH Positive Pay allows for real-time monitoring and immediate response to suspicious activities, making it a crucial component of treasury management solutions.

Jamie shared success stories from various clients who have benefitted from Check and ACH Positive Pay.

For instance, a mid-sized commercial bank reported a drastic drop in fraudulent transactions within the first few months of adopting the solution. Another client, a retail bank, praised the system’s user-friendly interface and how it empowered their customers to take control of their financial security.

“Check Positive Pay and ACH Positive Pay are not just tools; they’re strategic assets for any financial institution looking to enhance their fraud prevention measures.”

Attention-to-Detail Delivers Benefits

Despite the clear benefits, some financial institutions hesitate to adopt Check and ACH Positive Pay solutions due to perceived complexities. Jamie addressed these concerns by explaining that while the initial setup requires attention-to-detail, the long-term benefits far outweigh the initial efforts.

Alkami’s Positive Pay solution is also digital banking and core-agnostic.

She highlighted that Alkami provides comprehensive support during the implementation phase, including a marketing starter kit to help Positive Pay customers hit the ground running, ensuring that financial institution staff are well-trained and confident in using the system.

“Our team at Alkami is dedicated to making the transition as smooth as possible.”

Future Innovations in Fraud Prevention

Looking ahead to the potential for further innovations at Alkami, Jamie hinted at ongoing developments that aim to integrate advanced artificial intelligence in banking capabilities to predict and prevent fraudulent activities even before they occur.

These advancements promise to bring even greater efficiency and security to the banking sector.

“As technology evolves, so do the tactics of fraudsters,” Jamie said. “We are continuously innovating to stay ahead of these threats. Our goal is to provide financial institutions with cutting-edge tools that not only respond to fraud but anticipate and prevent it.”

Jamie Berg’s insights on the Wrestling Payments podcast shed light on the indispensable role of Check and ACH Positive Pay in business banking solutions.

For commercial professionals, these solutions strengthen their defenses against fraud, ensuring secure and efficient financial operations. By investing in Positive Pay solutions like those offered by Alkami, financial institutions can safeguard their assets and build lasting trust with their account holders.

As the financial industry and its technologies continue to evolve, staying ahead of fraud with innovative solutions like Positive Pay is essential. Embracing these tools not only protects against losses but also enhances operational efficiency, allowing businesses to focus on growth and success.

The Top 3 Facts Banks and Credit Unions Needs to Know About Positive Pay

1. Positive Pay Offers Seamless Fraud Prevention

Taking Action: The seamless integration of Positive Pay solutions in banking operations automates the detection of unauthorized transactions, providing a significant layer of protection against fraud.

This leads to fewer manual checks and less room for human error, making fraud prevention more reliable and efficient. Financial institutions can reassure their clients that their accounts are under constant, automated surveillance, thus building stronger customer and member relationships based on trust and security.

2. Education and Training are Essential for Effective Use

Taking Action: Comprehensive education and training programs are crucial for the successful implementation of Positive Pay. Banks and credit unions should prioritize training sessions for their staff to ensure they understand how to use Positive Pay tools effectively.

Additionally, educating customers and members on how these solutions work will help them appreciate the value of Positive Pay, leading to higher adoption rates and more proactive fraud prevention measures. Well-informed staff and account holders can respond swiftly and appropriately to potential threats, further minimizing the risk of fraud.

3. Layered Fraud Prevention is Imperative

Taking Action: Embracing innovations, such as AI-driven fraud detection, will be vital for financial institutions aiming to stay ahead of increasingly sophisticated fraud tactics. AI can analyze transaction patterns and predict potential fraud before it occurs, providing a proactive approach to fraud prevention.

Institutions that integrate these advanced technologies with a layered approach to fraud prevention will not only enhance their security measures but also improve operational efficiency.

By investing in the latest treasury management solutions, banks and credit unions can offer more enhanced protection and maintain their reputation as leaders in financial security.

Additional Resources from Alkami

• Watch Jamie Berg’s NEACH Wrestling Payments Podcast Episode on YouTube
• Download this special report from BAI, sponsored by and with contribution by Alkami “Combating the latest security and fraud threats”
• Case Study: Trustmark National Bank – turned to long-term partner, Alkami ACH Alert, to develop a replacement system for positive pay services using modern, comprehensive technology. Learn more here
• Case Study: Heartland Bank – Transforming Customer Experience with Alkami: Heartland Bank’s Positive Pay Success Story