Having the right tools to manage your cash is critical. So is taking all necessary measures to protect your business from fraud. Threats to your business finances are seemingly everywhere as scammers continually develop new techniques to steal your business’s hard-earned money. There are tools for your business out there that can help you manage your cash more efficiently and protect your funds and your investors’ funds, while also minimizing the risk of fraud.
Protect Your Funds
According to the 2021 Association for Financial Professionals Payments Fraud and Control Survey Report, 74% of organizations were victims of payment fraud in 2020. While that is a notable decrease from 81% of organizations in 2019, that number still represents a vast majority of businesses in operation today.
Your bank may offer anti-fraud products to protect your business’s transactions. Two such products that can help provide the ultimate defense are ACH Positive Pay and Positive Pay.
ACH Positive Pay
ACH Positive Pay is a Positive Pay product that protects your business accounts from electronic payment fraud by ensuring only debits authorized by you post to your account. ACH Positive Pay allows account holders to review electronic transactions posted to your accounts to greater prevent electronic fraud. This puts you in complete control of your account. ACH Positive Pay gives you the power to decide what employees receive notifications about pending transactions, what transactions are paid, and what transactions are returned.
In 2020, checks continued to be the payment method most impacted by fraud activity, comprising 66% of all fraud.
Positive Pay is an automated payee positive pay defense tool built to allow you to detect and return fraudulent checks. Positive Pay compares the checks presented with the information you’ve provided to identify any discrepancies. Should a suspicious check trigger Positive Pay, you’ll receive an email notification prompting you to either pay or return the check.
These tools can be a key component in avoiding many modern business threats.
Protect Your Investors’ Funds
Just as important as protecting your own funds is protecting those who depend on your business, namely your investors. It is essential to ensure that the money being invested in your business is properly protected and FDIC-insured. However, that can be tricky for business owners when an investor’s deposit exceeds $250,000.
IntraFi Network Deposits
IntraFi Network Deposits (formerly known as Insured Cash Sweep or ICS) is a safe cash management solution that enables access to FDIC insurance beyond $250,000 on large deposits while still working directly with your bank.
When your deposit is placed through IntraFi Network Deposits, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000. The amounts are then placed into deposit accounts at multiple FDIC-insured banks. As a result, you can access FDIC coverage from many institutions while only working directly with your bank.
Some of the perks of IntraFi Network Deposits include:
- Multi-million-dollar FDIC insurance backed by the U.S. government
- Working with just one bank and receiving one regular statement
- Maintaining access to your funds
- Supporting your community by keeping your deposit with your local bank
Choice Bank offers a Positive Pay Package that includes ACH Positive Pay and Positive Pay. Ask your banker or contact Choice Bank to learn more about these products and begin utilizing them to protect your business and your investors.
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Cash Management Officer
Cash Management Officer
Commercial Loan Officer