Question

Which of the following is included in the reverse positive pay service?

A) Verifying that issued checks match the payee's name

B) Confirming the authenticity of received checks

C) Monitoring the account for potential fraudulent activities

D) Issuing stop payments on all checks by default

Answer 1

Reverse positive pay service includes monitoring the account for potential fraudulent activities, which helps businesses detect and prevent check fraud.

Step-by-step explanation:

Reverse positive pay is a service provided by banks to help businesses detect and prevent check fraud. The service includes monitoring the account for potential fraudulent activities (C). Businesses are responsible for reviewing checks presented for payment against their issue records to confirm that the check number, payee name, and the amount match their records. If discrepancies are identified, the business can alert the bank to take appropriate actions, such as refusing the payment. Option A speaks to the process of verifying checks, which is related but not the direct responsibility of the bank in a reverse positive pay service. Option B concerns check authenticity verification, which is more aligned with positive pay services, and option D, issuing stop payments by default, is not part of any standard reverse positive pay or positive pay services. Therefore, option C is the correct answer to the question about what is included in the reverse positive pay service.