In the real estate industry, checks continue to be one of the prominent modes of transaction. They cover nearly 21% of the B2B transactions in the industry. This can be due to checks’ wide acceptance, reliability, and convenience. However, the rise in check fraud is also the biggest challenge these industries face as they involve large volumes of transactions. To combat frauds or scams, real estate firms can use Positive Pay. Let us see the positive pay definition to understand it more.
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What is Positive Pay?
Positive pay is a feature to detect and prevent any fraud during check transactions. This feature allows you to inform your financial institution about your issued checks before it processes the payment. Your financial institution will cross-reference the outgoing checks with the cleared checks. The payment is only made when the outgoing checks match the cleared checks. If they do not match, the checks are returned to the issuer. This service is very helpful in identifying and preventing fraudulent payments.
In this blog, let us see more about the Positive Pay feature and how it helps the real estate industry.
The Challenges of the Real-Estate Industry Using Check Payments
- Checks have sensitive financial information like account number, routing number, payee details, etc. With the advancements in technology, it is very easy for scammers to forge or tamper with checks.
- When you still use manual check processing methods, it will be very difficult to detect any sort of fraudulent activity.
- Real estate industries usually process large volumes of transactions. So, it will be difficult for them to ensure safety for check payments when processing large payments manually.
- As multiple parties are involved in real estate deals, there is a higher risk of fraudulent checks. A single case of check fraud can easily damage your relationship with your vendors, clients, and partners.
All of these can result in heavy financial losses for a real estate firm affecting their business operations.
Pay Your Checks Securely with the Cloud-Based Platform
With OnlineCheckWriter.com – Powered by Zil Money, real estate firms can make check payments securely. The platform offers an automated Positive Pay feature to detect check scams. A list of your company’s issued checks is transmitted to your financial institution by the platform. This list is uploaded via API, FTP, and Excel sheet. When you cancel or void the checks, the platform will inform your financial institution immediately. This can help you avoid the hassle of visiting your financial institution just to notify them when you cancel or issue checks.
Advantages of Using the Positive Pay Feature for Real Estate Businesses
Secure High-Value Transactions:
Real estate businesses usually deal with large volumes of transactions. This can include payments for purchasing properties, mortgages, or contractors. As they involve large transactions, they are often targeted to check fraud. With the positive pay feature of OnlineCheckWriter.com – Powered by Zil Money, real estate firm owners can feel secure. This is because positive pay ensures that all high-value transactions are legitimate. Thereby, the platform adds an extra layer of security when dealing with large transactions.
Minimizes Financial Losses:
The real estate business involves payments with multiple parties. This can include buyers, sellers, brokers, contractors, etc. As many stakeholders are involved in transactions there is a high risk of mistakes in checks, leading to financial losses. With the cloud-based platform’s positive pay feature, you can easily detect any mistakes as it verifies the details of each check payment.
Improves Cash Flow Management:
The positive pay feature of the platform prevents any unauthorized or incorrect check payments from being made. This can help real estate businesses to reduce overdrawing their accounts or cash flow issues, giving them better control in managing finances.
Protects Business Reputation:
The key to business success in the real estate industry is trust and reputation. A single check fraud case is enough to damage the business’s reputation and its relationship with contractors or investors. With the positive pay feature, real estate firms can ensure secure transactions with their contractors or investors, and enhance their relationships.
Early Fraud Detection:
The positive pay feature of the platform notifies its users immediately of any suspicious or unauthorized checks presented. This timely notification can help real estate firms to act at once and stop any financial damage. Also, it helps to reduce the administrative burden of reviewing checks manually. With this, businesses can focus on other important tasks.
Easy Integration with Financial Institutions and Accounting Software
OnlineCheckWriter.com – Powered by Zil Money is connected with more than 22,000 financial institutions in the USA and Canada. With this integration, businesses can easily link multiple financial accounts. It can help you protect against any check fraud as the financial data is matched with the software. You can also print or mail checks easily with the platform. For this, you may create checks or import them from your accounting software. Importing checks from the accounting software is simple as the cloud-based platform is integrated with top accounting software.
The Conclusion
By understanding the positive pay definition and its working, real estate firms can conduct transactions securely. With OnlineCheckWriter.com – Powered by Zil Money’s automated positive pay feature, businesses can eliminate the hassle of check fraud or incorrect payments. You can peacefully conduct check payments on time and maintain good relationships with your stakeholders.
