Positive Pay Implementation Checklist: 8 Steps Before You Turn It On

Last reviewed October 2, 2026.

Your bank asked you to turn on positive pay, or a bad check just cleared your account. Positive pay means you send your bank a list of the checks you issue, and the bank flags any check that does not match before it pays.

Setup is mostly a handful of decisions made ahead of time. The one that surprises people is the default: what happens to a flagged check if nobody answers by the bank’s cutoff. This checklist covers eight steps in order.

Checks are a real target. In the Association for Financial Professionals’ 2026 survey, 58% of organizations said checks were subject to fraud in 2025, and checks were the most targeted payment method.

The 8-Step Checklist

1. Ask your bank what it offers. Find out which accounts can be enrolled, what it costs, and which type of positive pay it supports. One credit union’s guide lists the enrollment choices as file format, cutoff times, and user access.
2. Pick the type. Standard positive pay compares the check number and amount, and some banks add the issue date. Payee positive pay adds a check on the payee name. Some banks also offer reverse positive pay, where you review the checks the bank received. Ask which one fits, and whether checks cashed at a teller window are checked against the list too.
3. Get the file layout from your bank. Ask for the file format and the fields it requires, and who to call if a file is rejected.
4. Confirm the cutoff, the default, and who has access. Cutoffs differ by bank. Ask yours for the exact time and time zone. If nobody answers, the bank’s default decision applies instead of yours. That default is usually pay or return. Return protects you from fraud but can bounce a good check. Pay does the opposite. Ask your bank which applies and whether you can choose.
5. Make sure the bank gets your list every time you issue checks. It has to arrive before the checks leave the building. Update it when you void or reissue a check, so the bank does not flag the old one.
6. Plan for checks already out. Ask your bank how to handle checks you issued before go-live, and how to tell it about voids and stop payments.
7. Name an approver and a backup. Flagged checks need an answer before the cutoff, including on days your usual person is out.
8. Test it, then keep reviewing. Run one small real check, confirm it matches, and look at the first exceptions. Keep reading your statements. UCC 4-406 says a customer must examine statements with reasonable promptness. Your account agreement may set shorter deadlines for reporting problems.

What Does Positive Pay Not Cover?

Positive pay covers checks only. Ask your bank separately about ACH and wire controls. Your account agreement matters too. UCC 4-103 lets a bank and its customer change the effect of the rules by agreement, though a bank cannot disclaim its own lack of good faith or ordinary care, so read yours before you decide who bears a loss.

How Does OnlineCheckWriter Fit?

OnlineCheckWriter’s positive pay page says it sends the check number, dollar amount, payee name, and issue date to your bank automatically, and that a rejected check is returned unpaid. The page lists the price per account. It does not name the banks or file formats it supports, so ask OnlineCheckWriter support to confirm your bank is supported before you rely on it.

More reading: check fraud prevention guide, stop payment on a check, and the check register.

Quick Answers About Positive Pay