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#2180419 - 06/01/18 01:53 PM Positive Pay and Returning Checks
iLovetheVols, CRCM Offline
Member
Joined: Sep 2014
Posts: 66
Texas
I am trying to get an idea of the process by which other FIs return checks with positive pay...

1. If your customer doesn't approve (or disapprove) exception items by the deadline, do you return the exception checks?
a. If so, what return code do you use?
2. If you do not return exception items because the customer did not review by the deadline, are you contacting individual customers to remind them to review? (We are currently engaging in this practice and it is time consuming.)
3. How often are you obtaining affidavits of forgery and under what circumstances?

Feel free to address only part of my post- All feedback is appreciated.Thanks!

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#2180640 - 06/04/18 06:22 PM Re: Positive Pay and Returning Checks iLovetheVols, CRCM
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I don't work in a bank (haven't since 2004), but can offer some thoughts --

1. Your PP agreement should spell out what you do when the customer hasn't acted by your deadline. Your PP agreement might say you require a "Pay" response for each item the customer approves, or it might say you will pay any item for which you haven't received a "Don't pay" response. I've had customers on both sides of the question -- some who wanted us to bounce everything without a confirming "Pay" and some who wanted us to pay everything except the ones they said "No" to. Usually the customers that routinely issued a lot of checks were in the latter camp.

2. It makes sense to start calling non-responding customers before the cutoff hour if they are new to the game. But for others, I think it only makes sense if a regularly on-time customer slips, and perhaps call at the deadline to see if something's wrong.

3. On the forgery question, it makes sense to get an affidavit if you return an item code L (signature irregular, suspected forgery) in case the check comes back again for payment. Then you can return it a second time code Z (forgery, affidavit available on request).
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#2181158 - 06/08/18 07:16 PM Re: Positive Pay and Returning Checks iLovetheVols, CRCM
iLovetheVols, CRCM Offline
Member
Joined: Sep 2014
Posts: 66
Texas
Thanks John!

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#2181323 - 06/11/18 08:45 PM Re: Positive Pay and Returning Checks iLovetheVols, CRCM
madukes Online
Diamond Poster
madukes
Joined: Jul 2009
Posts: 1,463
Flyers Country
If a customer does not respond to their exceptions we return as "refer to maker". if they mark an item to return, we check the return reason they chose and then use that same (or close) reason on our return report.

The system we use generates an email to all customers just before the marking window. approximately a half hour before the window closes I "reply all" and send the a reminder.

If any items are not marked when the window closes they are returned.

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#2181375 - 06/12/18 01:46 PM Re: Positive Pay and Returning Checks iLovetheVols, CRCM
Dog Lady Offline
Member
Joined: Dec 2015
Posts: 74
We used to have the same processes and frustrations as you addressed in 1 and 2, but we recently moved to a new solution which allows more customization. Each business is set up with a default Pay/Return decision if they fail to decision. I believe we also return "Refer to Maker" but don't quote me. Email reminders are automated and how many are sent when and who they are sent to is also customized to the business. I beleive typically they get a 9 AM one saying there are items to decision, and if they do not go in to decision, they get another one later that reminds them before cutoff.

If it's in the budget, it saves a TON of staff time and headache.

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