Positive Pay Customer Guide by Nomad Press

Positive Pay Customer User Guide

POSITIVE PAY CUSTOMER USER GUIDE This document is intended to provide the reader with information related to Check Positive Pay (PRO-CHEX) Standard, Optional and upgrade features available through Check Positive Pay (PRO-CHEX) Enterprise. These features are differentiated in this document as follows: ■ ■

Standard features will appear in regular font, as shown here. Optional features will appear in italic font, as shown here.

NOTICE: This document contains confidential proprietary information published by Alkami (formerly ACH Alert). The information in this document is intended solely for the use of Alkami’s employees and clients. All rights reserved. This information may not be disclosed to any third party without the express written permission of Alkami. NOTE: All screenshots used in this User Guide were obtained using Check Positive Pay (PRO-CHEX) in the Chrome browser. If a Client user uses Check Positive Pay (PRO-CHEX) in a different browser, certain screens may display differently than shown in this guide. However, even though screens may appear different, the functionality remains the same across browsers. NOTE: As of 09/15/2023, the FPHQ platform and all modules thereon are supported for the following modern browsers only: Chrome: Last 4 versions Firefox: Last 4 versions Firefox Extended Support Release: Latest Edge: Last 4 versions

Positive Pay Customer User Guide I. WELCOME TO POSITIVE PAY A. Alerting B. Issue Items C. Exception Items II. CHECK POSITIVE PAY (PRO-CHEX) DASHBOARD BOX A. Using the Dashboard B. Creating Client Users III. USER ACCOUNTS AND PRIVILEGES A. User Privilege Dependencies B. Client User Privileges IV. MANAGING ISSUE ITEMS A. Test Mode B. Status Values C. Manual Entry D. Issue Templates F. Loading Issue Files G. Issue File Status H. Issuance Dual Approval I. Issue Warehouse J. Item Lookup K. Other Options Prior to Item Presentment V. EXCEPTION IDENTIFICATION VI. MANAGING CHECK PRESENTMENT A. Transaction History B. Optional Actions C. Review Payee D. Notes VII. MATCH PAID ITEMS A. Paid No Issue Match VIII. DECISION DUAL APPROVAL IX. REPORTS A. Adjusted Items Report B. Issue Item Status Report C. Scheduled Reports D. Reconciliation Reports and Reconciliation Periods X. PAYEE POSITIVE PAY TIPS & BEST PRACTICES A. Payee Name Comparison: “Scoring” B. Ideal Check Formatting C. Other Common Check Formatting Problems D. Custom Payee Boxing E. Multiple Payee Handling F. Visually Inspect Non-Exceptions using Payee Review Feature XI. PREFERENCES A. Preferences APPENDIX A – CHECK POSITIVE PAY (PRO-CHEX) MESSAGE ALERTS APPENDIX B – QUICKBOOKS ISSUE FILE EXPORT B. Exporting from QuickBook Reports C. Loading the QuickBooks Issue File APPENDIX D – CLIENT USER TRAINING VIDEOS 2

3 4 5 6 7 7 9 13 13 14 19 20 21 22 28 38 46 57 62 70 72 75 76 76 90 92 97 100 100 106 111 111 115 122 126 132 132 133 139 141 142 148 149 149 151 163 179 199 202

Positive Pay Customer User Guide

I. WELCOME TO POSITIVE PAY Check Positive Pay (PRO-CHEX) is a check positive pay service designed to prevent financial loss due to check fraud. The table below lists the Positive Pay types available for each account enrolled in PRO-CHEX, along with a description of expected behavior. Check Positive Pay (PRO-CHEX) relies on clients to make daily decisions, when required, for the check activity occurring on their accounts. When accounts are enrolled, a default setting is established for the system to return or pay a transaction by the established endof-day cut-off time. The last column in the table defines the default settings available for each type of positive pay service. Positive Pay Type

Service Description

Standard Positive Pay

This service requires the Client to provide a list of checks issued or voided on an account (Issue Items). The issue items for each account must include, at a minimum, a check serial number, amount, and status (Issued, Voided, Stopped). The FI compares each check presented for payment (Item) against the list of issue items. If an exception is identified, designated users are alerted to make a pay or return decision.

Default Setting Options Pay or Return

Note: This is the only form of positive pay allowed to be included in Item Cleanup. Reverse Positive Pay

This service does NOT require clients to provide a list of issued items. Clients should log in every day to view checks presented for payment and select the checks to return because the concept of an exception does not exist, since no list of issue items is present to compare items against. However, clients may request the FI establish a maximum check amount per account (Exception Limit). If this optional setting is enabled, an alert is sent to designated users ONLY when a check is presented exceeding the maximum amount established.

Pay

Positive Pay Customer User Guide

A. Alerting

Check Positive Pay (PRO-CHEX) notifies designated users to take action when required. PRO-CHEX is designed to ensure notifications are relevant, and each client can advise the FI of their desired notification levels. The table below outlines a list of events that trigger an alert to a client and includes a description of the triggering event.

Alert Type

Description

Exception Alert

Issuance File Load Alert

Occurs when a check is presented for payment that does not match the issue information provided or occurs when an exception limit is exceeded on an account enrolled in Reverse Positive Pay. Occurs when an issue file is loaded. The alert contains status information to indicate if the issue file loaded properly or failed to load due to errors.

Issue File Pending Approval

Occurs when the issue file is loaded and the file is being held in “Suspended” status until approved by a secondary user.

Decision Approval Required

Occurs when check transaction decisions require a secondary approval.

When an account is enrolled for Positive Pay, one of three levels of notification can be established for exception alerts. The notification level options and descriptions are provided in the table below. Email alerts are standard. Clients can also elect to receive text alerts. Notification Level

Description

Transaction Alerts

One alert sent for each exception identified.

Account Alerts

The client does not use Standard or Reverse Positive Pay, but does use the Enterprise features Active Reconciliation or Scheduled Reports.

Service Alerts

One alert sent per user when one or more exceptions are identified on one or more enrolled accounts.

Positive Pay Customer User Guide

B. Issue Items

Certain types of positive pay service require clients to maintain a list of issued items for the FI to compare presented items against for exception identification. While issue items can be added after a check has been presented for payment, we recommend clients enter or load issue items prior to disbursing paper checks to payees, as failure to do so could result in denial of payments if the check is presented at the teller line for deposit or to be cashed. When an issued item is entered or loaded into Check Positive Pay (PRO-CHEX), the status and disposition of the issued item is tracked. The table below describes the status and disposition labels associated with issue item management.w Labels

Description

Issued

A status defined by the client that indicates a check was issued.

Voided

A status defined by a client that a check was issued but later voided and not distributed.

Stopped

A status defined by a client or designated by the FI, if the FI chooses to control this status.

Available for Matching

A status assigned by the Check Positive Pay (PRO-CHEX) system when an issue item is entered or loaded by a client.

Used in Matching

A status assigned by the Check Positive Pay (PRO-CHEX) system when a check is presented for payment with a serial number matching a serial number for an issued item.

Outstanding

A status displayed in the issue warehouse indicating a check has not been presented for the issued item, and the check is still available for matching. A status displayed in the issue warehouse indicating a check has been presented against an issue item, and the check was paid by the system, Client, or FI.

Paid

Returned

A status displayed in the issue warehouse indicating a check has been presented against an issue item, and the check was returned by the system, Client, or FI.

Purged

Positive Pay Customer User Guide Labels

Description

Deleted

A status value displayed in Issue File Status indicating a loaded file was deleted by the client or FI user. A history of the file load and delete actions is retained, but the issue items are removed as if they were never introduced to the system.

Updated

If an issue item is updated after loading, history is available in the issue item warehouse when the drop-down for an issue item is expanded.

C. Exception Items

When a financial institution cannot process and clear a check normally, the payment becomes an exception item requiring special handling. If Payee Positive Pay is enabled, the check image is scored through payee name comparison. Examples of reasons a check can be flagged as an exception include Payee Mismatch, Amount Mismatch, Voided or Stopped Status, Early Presentment, and other causes . The client can prevent the likelihood of some issues with presented items by following industry best practices. For more information about best practices, please refer to Section X. Payee Positive Pay Tips & Best Practices within this document. When an item is marked as an exception, the Check Positive Pay (PRO-CHEX) system will follow the default exception action configured in the account regarding whether to pay or return the presented item, if no action is taken by the client. When an item is matched successfully and no exceptions are identified, the presented item is paid.

Positive Pay Customer User Guide

II. CHECK POSITIVE PAY (PRO-CHEX) DASHBOARD BOX A. Using the Dashboard 1. The Dashboard is the default landing page within the Client portal. If Check Positive Pay (PRO-CHEX) is enabled, a PRO-CHEX box will be displayed. Summary information on current check transactions and status will be displayed for accounts the user has been granted access. Active links are embedded within the PRO-CHEX box to permit users to navigate from the dashboard landing page into the PRO-CHEX service module or directly to transactions in the status selected. Dashboard totals are updated in real time as transaction status values are changed by a user. The content displayed in the Check Positive Pay (PRO-CHEX) summary box includes the following:

Service Name

In the example provided, clicking Check Positive Pay (PRO-CHEX) on the left in the title bar will direct the user to the main menu. End of Day Cut-Off Displayed in the second bar, the time of day indicates when Time transactions that require decisions will no longer be eligible for user decisions. Exceptions Clicking on the dollar amount hyperlink on the Exceptions line will direct the user to a filtered view of Transaction History that will display only exceptions that require a decision. Pending Approval

If Dual Decision Approval has been enabled, the Pending Approval hyperlink will appear in the Dashboard. Clicking on the dollar amount hyperlink on the Pending Approval line will direct the user to the Check Transaction Approval screen, where the user can approve or reject any transactions that are pending approval by the user. For more information about Decisioning Dual Approval, please refer to Section VIII, Decision Dual Approval.

Positive Pay Customer User Guide

Set to Pay / Set to Return

Transaction History

Clicking on the dollar amount hyperlinks on the Set to Pay or Set to Return lines will expand the view to display a breakdown of the total for each category. System Pay or Return indicate transactions that will pay or return if no action is taken due to the default status. User pay or return indicate a Client user decision has occurred. FI pay or return indicate an FI decision has occurred on behalf of the FI.

The user can click on the dollar amount link for any category to be directed to a filtered view of the Transaction History. In the above example, the user has clicked on the dollar value of Exceptions on the Dashboard and is directed to a view of exception transactions that require decision. Please refer to Section VI, Subsection A, Transaction History, for more information on this function.

Positive Pay Customer User Guide 2. From the Client Dashboard, a user can navigate to the Check Positive Pay (PRO-CHEX) Module by clicking Change Module > PRO-CHEX.

B. Creating Client Users NOTE: ■ The Admin user privilege must be enabled. ■ This feature is only available if 1) the FI is allowing Clients to manage their own users, and 2) it will only display for Client users who have been designated with Client Admin status.

A Client User with Admin user privilege can add additional Client users who will then be authorized to use Check Positive Pay (PRO-CHEX). 1. From Client Dashboard > Click Manage Users.

2. The Client Users page appears. Click the “Create New User” button.

Positive Pay Customer User Guide 3. The New User page appears. Fill out all fields available, the click “Create User” button.

4. If the user is configured for standard security login, the New User interface will display these fields.

Positive Pay Customer User Guide 5. If the user is configured for single sign-on, the New User interface will display these fields. Please note that the SSO ID field can have different labels and formats based on the online banking provider being used. The maximum number of allowable characters in the SSO ID field is limited to 50.

NOTE: ■ SSO ID must match the customer’s Mascoma Bank digital banking user ID.

Positive Pay Customer User Guide 6. The User profile page appears. Scroll down to the “System Roles” section of the page to select what roles should be enabled for the user. For more information on managing user entitlements, please refer to the Fraud Prevention HQ Client User Guide, Sections II and III.

7. Within the Check Positive Pay (PRO-CHEX) settings box, the alert method can be chosen. Use the drop-down to select the alert method desired.

8. Choose from the list of available accounts enrolled in Check Positive Pay (PRO-CHEX) the user is entitled to work with and move them to the Selected Accounts box. > and < move individual accounts between Available and Selected Accounts. >> and << move all accounts between Available and Selected Accounts.

Positive Pay Customer User Guide 9. For more information regarding Client User Privileges, please refer to Section III. User Accounts and Privileges.

III. USER ACCOUNTS AND PRIVILEGES Additional information about creating and editing Client users can be found in the Fraud Prevention HQ User Guide, Sections II and III. This section covers Client user privileges and alerting methods for the Check Positive Pay (PRO-CHEX) module.

A. User Privilege Dependencies Some user privileges are standard, and some are dependent upon features that are enabled by your financial institution. If you see a privilege below and it does not appear in the Client user interface, the feature has not been enabled. Privilege

User

Feature Dependencies

Adjusted Items Report

Client

FI Enabled

Approve Issue File

Client

FI Enabled

Cancel Issue Item

Client

FI Enabled

Change Transaction Status

Client

Standard

Client Additional Issue Fields DDA Balance Entry

Client

FI Enabled

Client

FI Enabled

Decision Dual Approval

Client

FI Enabled

Edit Issue Item

Client

Standard

Issue Item Status Report

Client

FI Enabled

Issue Load Alerts

Client

FI Enabled

Issue Templates

Client

FI Enabled

Issue Warehouse

Client

Standard

Item Lookup

Client

Standard

Load Issue File

Client

Standard

Manage Issue File Status

Client

Standard

Positive Pay Customer User Guide Privilege

User

Feature Dependencies

Manual Issue Entry

Client

Standard

Paid No Issue Matching

Client

Standard

Pay and Adjust

Client

FI Enabled

Pay and Issue

Client

FI Enabled

Reconcile Accounts

Client

FI Enabled

Scheduled Reports

Client

FI Enabled

Transaction History

Client

Standard

View Issue File Status

Client

Standard

View Issue Reconciliation Reports

Client

FI Enabled

B. Client User Privileges NOTE: ■ he Admin user privilege must be enabled.

1. On the Client User page, scroll to Check Positive Pay (PRO-CHEX) service station. 2. Choose from the list of available accounts enrolled in Check Positive Pay (PRO-CHEX) the user is entitled to work with and move them to the Selected Accounts box. > and < move individual accounts between Available and Selected Accounts. >> and << move all accounts between Available and Selected Accounts.

Positive Pay Customer User Guide 3. Selecting Check Positive Pay (PRO-CHEX) Client User Privileges a. Selecting all | none i.

By selecting all, the user is assigned all user privileges.

ii. By selecting none, previously assigned user privileges are removed.

Positive Pay Customer User Guide iii. Clicking in the box beside each user privilege adds or removes the checkmark from the box. Adding a checkmark gives the user that privilege, and removing the checkmark removes the privilege from the user. Privilege

Description Approve Issue File Allows the user to approve issue files loaded by other users when a client is configured for issuance dual approval. NOTE: Approve/Reject Issue Files must be enabled. Tansaction History Allows the user to view check transactions presented for payment. If this privilege is enabled, the user will also have access to an item lookup sub-menu option. Decision Dual Approval Allows the user to approve transactions awaiting an Approve or Deny decision. NOTE: Client Decision Dual Approval must be enabled. View Issue File Status Allows the user to view the status of issue files loaded into the system. Load Issue File Allows the user to load issue files via the Client Portal. Item Lookup Ability to look up all recorded data on individual issued items. Change Transaction Status Requires Transaction History user privilege. Allows a user to change the status of a transaction from return to pay or pay to return. Cancel Issue Item Can cancel issue items from the Issue Warehouse. NOTE: Cancel Issue Item must be enabled. Edit Issue Item Allows a client user to modify issue items. NOTE: Issue Warehouse privilege must be enabled 16

Positive Pay Customer User Guide Privilege

Description Manage Issue File Status Ability to edit parse errors in the file or delete issue files. Issue Load Alerts Will receive success or failure alerts when Clients load issue files. NOTE: Issue Load Alerts must be enabled. Manual Issue Entry Allows the user to manually create an issue item. NOTE: Manual Issue Entry must be enabled. Issue Item Status Report Allows the user to view issued items by status for a specific date or date range. NOTE: Issue Item Status Report must be enabled. Adjusted Items Report Can view items adjusted during the cleanup process or during client decisioning. NOTE: Adjusted Items Report must be enabled. Client Additional Issue Fields Allows the user to create Additional Issue Fields within Issuance File Templates. NOTE: Additional Issue Fields must be enabled. Issue Templates Allows a user to create a template defining the format of the issue file they will load, including the format and location for the data elements to be provided in the file. If this privilege is enabled for a user, the user can to manage additional issue fields. NOTE: Issue File Mapping must be enabled.

Positive Pay Customer User Guide Privilege

Description Issue Warehouse Allows the user to view issue items and history. Paid No Issue Matching Ability to match issue items loaded to the system after cleanup has been performed to Pay No Issue exception items.

4. Select Save User. a. Success message appears.

Positive Pay Customer User Guide

IV. MANAGING ISSUE ITEMS Certain types of positive pay services require Clients to maintain a list of issued items for the financial institution to compare presented items against so exceptions can be identified. While issue items can be added after a check has been presented for payment, it is highly recommended that Clients enter or load issue items prior to disbursing paper checks to payees, as failure to do so could result in denial of payment if the check is presented at the teller line for deposit or to be cashed. If issue items are entered or loaded on accounts configured for positive pay types that do not require a list, Check Positive Pay (PRO-CHEX) will ignore them. When an issued item is entered or loaded into Check Positive Pay (PRO-CHEX), the status and disposition of the issued item is tracked. The table below describes the status and disposition labels associated with issue item management. Labels

Description

Issued

A status defined by the Client that indicates a check was issued.

Voided

A status defined by a client that a check was issued but later voided and not distributed.

Stopped

A status defined by a client or designated by the FI, if the FI chooses to control this status.

Cancelled

A status defined by a Client or FI user to indicate an issued check is to be cancelled and removed from the outstanding issue items in the Issue Warehouse. A status assigned by the Check Positive Pay (PRO-CHEX) system when an issue item is entered or loaded by a client.

Available for Matching Used in Matching

A status assigned by the Check Positive Pay (PRO-CHEX) system when a check is presented for payment with a serial number matching a serial number for an issued item.

Outstanding

A status displayed in the issue warehouse indicating a check has not been presented for the issued item, and the check is still available for matching.

Overwritten

A status displayed if a subsequent issuance file load contained an item which has overwritten this item with an update to either the Payee Name or Amount. A status displayed in the issue warehouse indicating a check has been presented against an issue item, and the check was paid by the system, Client user, or FI.

Paid

Positive Pay Customer User Guide Labels

Description

Returned

A status displayed in the issue warehouse indicating a check has been presented against an issue item, and the check was returned by the system, Client, or FI.

Purged

A status assigned by the Check Positive Pay (PRO-CHEX) system when an issue item not used in Matching (Outstanding) has been removed from the system after the purge period has ended. The purge period is defined by the FI. A status value displayed in Issue File Status indicating a loaded file was deleted by the client or FI user. A history of the file load and delete actions is retained, but the issue items are removed as if they were never introduced to the system. If an issue item is updated after loading, history is available in the issue item warehouse when the drop-down for an issue item is expanded.

Deleted

Updated

A. Test Mode Clients can request the FI enroll accounts with an inactive status and grant users’ access to the system to test issue file load. Issue items loaded while in test mode are marked as test issue items and will not be displayed in the issue warehouse or used for matching against presented checks. Clients must notify the FI when testing has been completed and they wish the account to be active.

Positive Pay Customer User Guide

B. Status Values Issued items can have a status of Issued, Voided or Stopped. 1. Issued: The check has been issued and distributed for payment. 2. Voided: The check has been voided by the maker. A check is usually voided prior to disbursement. A voided check cannot be used to make a payment or withdraw money from the account. 3. Stopped: A check that has a stop payment placed on it. A stop payment is placed by a financial institution to cancel a check that has not yet been processed. 4. Cancelled: A check that has been issued and a client user or FI user has opted to cancel the item. The outstanding issue item will be removed from the Issue Warehouse. 5. Disable Stop Payments: The FI may choose to Disable Stop Payments in their configuration settings. The FI may choose to do this because they prefer to update those items in their core banking system.

If stop payments are enabled, the client user can: ■

Load issue files with stopped status items

■

Overwrite via Manual Issue Entry to change an item from Stopped to Issued or Voided

■

Change a previously Stopped item to Issued or Voided via Issue Warehouse

If stop payments are disabled, the client cannot: ■

Load issue files with stopped status items

■

Overwrite via Manual Issue Entry to change an item from Stopped to Issued or Voided

■

Change a previously Stopped item to Issued or Voided via Issue Warehouse.

Positive Pay Customer User Guide

C. Manual Entry NOTE: ■ The Manual Issue File user privilege must be enabled. If the FI enables this feature, Clients can manually enter a list of checks that have been issued. To manually enter an issue item, the user must be granted the manual issue entry user privilege. The table below describes a list of fields that may be displayed in the manual entry screen, the criteria for the field to display and how the information entered will be used to identify exceptions when matching issue items to checks presented for payment. Field

Criteria

Use

Serial #

The check number/serial # is always required.

Amount

A dollar value is always required.

Payee Name

The person(s) or entities to whom the check was intended to pay. The field will support entry of multiple payee names (maximum of 4 allowed) by clicking “Enter” to input another name on the next line.

To identify if the check was issued or presented more than once. Used to identify if the amount of a check has been altered. Used to identify if the name in the “Pay to the order of” line has been altered.

This feature is optional, and the field will only appear for accounts configured for payee positive pay. If this feature is enabled, when a payee is required in an issuance file, values consisting of only white space (ex., all spaces) will be considered the same as an empty value and will not be accepted. This field supports both alphabetic and numeric characters. Status

Each check should be accounted for, even checks that have been voided or have had a stop payment issued. The status value advises the FI if a check has been issued and distributed, issued, later voided and not distributed or issued, distributed and stop payment order was requested later. The issued and void status values will always be available for selection. The stopped status will only appear if the FI has enabled this option for Client designation. 22

Used to determine if a check should be analyzed for matching (issued) or if a check was presented for payment that was previously voided or stopped.

Positive Pay Customer User Guide Field

Criteria

Use

Issuance Date

A date the check was issued and valid for payment is always required. The issuance date will always default to the current date, but the user can assign a back or future date. Additional Only available if the Issue Templates user privilege is Issue Fields turned on for a user. Additional issue fields are typically used if a Client requires Check Positive Pay (PROCHEX) to retain information related to the issued item for reconciliation purposes.

Used to determine if a check is presented earlier than intended or later than allowed. Used for account reconciliation purposes. Example: An invoice # associated with a check.

1. From the Check Positive Pay (PRO-CHEX) module, click Perform > Manual Issue Entry.

2. The Manual Issue File Entry screen appears.

Positive Pay Customer User Guide Account

Select appropriate Account Number from the drop-down menu.

Auto populate When checked, the next check number will auto-populate in the following next check number row. This feature is designed to eliminate serial number entry when checks are issued in sequential order. When unchecked, the next check number will remain blank until it is filled in by the user. Row

Each issue item will be numbered in the order they are entered. Once the cursor is placed in the current row, an additional row will appear for the next entry.

Serial Number

Type the item serial number for this manual issuance file in the Serial Number field.

Amount

Type the dollar amount for this manual issuance file in the Amount field. Or use the up and down arrows in the Amount field to select a dollar amount.

Payee Name

Type the payee name for this manual issuance file in the Payee Name field. The Payee Name field supports the entry of a single payee, or multiple payees. This field supports both alphabetic and numeric characters. Please see Step #3 below for in-depth information about the Payee Name field and Multiple Payee Names.

Row

Each issue item will be numbered in the order they are entered. Once the cursor is placed in the current row, an additional row will appear for the next entry.

Status

Issued The check has been issued Voided The check has been voided by the maker. Stopped The check has had a stop payment placed on it. If the FI has disabled stop payments, the Stopped status option will not appear in the drop-down menu.

Issuance Date

Click on the Issuance Date field and select a date from the calendar that this item was issued. On accounts configured for Active Account Reconciliation, the Manual Issue Entry screen will not permit selecting a date prior to the start date of the current reconciliation period.

Positive Pay Customer User Guide 3. Payee Names: The Payee Name field supports up to four Payees. a. Click within the Payee name field to enter Payee Name(s).

b. The view size on the Payee Name field can be enlarged by dragging bottom right corner of field box. The feature may not be available based upon the browser used.

c. Input the Payee Name in the field. If there are multiple payees, an Enter (carriage return) must be used to input a second, third or fourth payee on separate lines in the field for it to be distinguished as different payees.

This functionality will not be available if the FI has enabled Custom Payee Boxing for an account. If multiple payees are listed on a single line of the check, putting them on separate lines is not applicable.

d. The Payee Name field currently supports 500 alphanumeric characters in total. This count will include the carriage returns separating multiple payees. The 500-character limit is for the entire field, and not per payee. Although 500 characters are allowed in this field, names might be truncated if using a fixed width template and the number of characters allowed in that column are less than 500.

Positive Pay Customer User Guide e. If Payee Positive Pay is enabled, the Payee Name field will not accept blank entries for items with Issued status, and will give an error message if an entry is attempted to be saved without a Payee Name.

4. To edit any row, click in the fields to be edited and make changes. 5. When all manual issuance files have been entered, click Save button. 6. The Manual Issuance File Status detail page appears.

Load Date

Date and time the file was loaded.

Account Number The account number on each issue item. Serial Number

The serial number of the issue item.

Amount

The amount of the issue item.

Payee Name

Name of the payee(s) from the issue item.

Status

Available_For_Matching

The issued item is available for exception matching against an incoming check.

Duplicate Issuance

This issued item is a duplicate and has already been issued. This issued item has been used in the exception matching against an incoming check.

Used in Matching

Issuance Date

Date the item was issued. 26

Positive Pay Customer User Guide 7. Click the Back to Status button to view the Issuance File Status page. For more information, please refer to Subsection G, Issue File Status. 8. Issuance Dual Approval: Some clients may have the optional Issuance Dual Approval feature enabled, if offered by the FI. In this circumstance, manual entry files must be approved by a second client user or, if no second user is available to approve the file, the client can request the FI approve the issue file. Please refer to Subsection H. Issuance Dual Approval for more information about the Issuance Dual Approval process. 9. Disable Stop Payments: When the FI has disabled stop payments, client users cannot create new stopped issue items or modify previously stopped issue items. The FI can, however, feed stop pay items from the core banking system. a. If a user attempts to create a manual entry item with a serial number the FI has loaded a stop pay on, the system will not accept the item.

Positive Pay Customer User Guide

D. Issue Templates The purpose of issue templates is to make it easy to load issue items into Check Positive Pay (PRO-CHEX) using files that can be generated out of most accounting systems. PRO-CHEX provides organizations a variety of flexible options for providing a list of checks that have been issued or voided. Issue templates allow users to select from a list of file formats supported and identify where the required data elements are located within the file. Once a template has been set up, the template can be selected when loading a file to tell Check Positive Pay (PRO-CHEX) how to use the data contained in the file. Multiple file templates can be set up, displayed, and used. FIs can create templates for Clients to use, or the FI can allow Clients to create their own templates. NOTE: ■ The Issue Template user privilege must be enabled. 1. From within the Check Positive Pay (PRO-CHEX) module, click Manage > Issue Templates.

2. The system displays a list of any existing templates available for view or edit, and a button to Create New Template. NOTE: Templates created by the FI cannot be modified by a Client. Templates created by the Client can be modified by the Client and the FI. Templates created by the FI can be viewed by clicking the eye icon in the Edit/View column.

Positive Pay Customer User Guide 3. To view or edit an existing template, click the pencil icon for the appropriate template. The template displays with the date the template was last updated.

4. To delete an existing template, click the checkbox next to the Templates to be deleted and click Delete Selected. Templates that have the Delete option were built by the Client and can be deleted/edited by the Client user. Templates without the Delete option were built by the FI and cannot be deleted/edited by the Client user. 5. To create a new template, click the Create New Template button

The upper portion of the template screen will not change, regardless of the file type selected. The template name, file type, and template status values are required. The header and footer fields are optional. Template Name

Name of the template being created.

File Type

Select the appropriate file type. Check Positive Pay (PRO-CHEX) accepts Issuance File uploads with the following formats:

Comma Separated (.csv) ■ Fixed Width (.txt) ■ Excel Workbook (.xlsx) ■ Excel 97-2003 Workbook (.xls) ■ Pipe Separated (.csv) ■ Semi-colon Separated (.csv) ■ Tab Separated (.txt) ■

File types other than the ones listed above are not accepted. 29

Positive Pay Customer User Guide Once File Type is selected, specific instructions for each file type will appear, based on the selection. Examples of each file type are shown below. Comma Separated (.csv): A delimited text file that uses a comma to separate values. Each line of the file is a data record. Each record consists of one or more fields, separated by commas. Excel 97-2003 Workbook / Excel Workbook (xls, .xlsx): A file created using the Excel program. Each line of the file is a data record. Each record consists of one or more fields separated into columns. Fixed Width (.txt): Data in a fixedwidth text file is arranged in rows and columns, with one entry per row. Each column has a fixed width, specified in characters, which determines the maximum amount of data it can contain. No delimiters are used to separate the fields in the file. Pipe Separated (.csv): A delimited text file that uses a pipe character ( | ) to separate values. Each line of the file is a data record. Each record consists of one or more fields, separated by pipes. Semi-colon Separated (.csv): A delimited text file that uses a semi-colon to separate values. Each line of the file is a data record. Each record consists of one or more fields, separated by semi-colons. Tab Separated (.txt): A simple text format that uses a tabular structure to separate values. Each line of the file is a data record. Each record consists of one or more field, separated by tabs.

Positive Pay Customer User Guide Template Status

Can be set to Active or Inactive. Active templates are used for loading issue files; inactive templates cannot be used for issue file loading.

Number of Header/ Footer Rows

Many accounting systems can export excel or fixed width files. Sometimes those files have header (beginning) rows or footer (ending) rows containing data not required by Check Positive Pay (PRO-CHEX). When setting up a template, the Client can define the number of rows Check Positive Pay (PRO-CHEX) should ignore at the beginning and end of the file. If the values are entered incorrectly, an issue file may load with errors or no items.

Multi-Line Payee Name Separator

This feature allows the user to enter a character to be used to separate Multiple Payee Names on separate lines of an issued item. Acceptable and allowed characters are limited to the following: ; | , - _ / Do not use a Multi-Line Payee Name Separator character that will ever be present in a Payee Name, or that will be a character used in a specific file type (i.e., Comma Separated files). Payee Name Separators are only necessary when payee names are listed on two or more separate lines of a check. Please Refer to Section X, Payee Positive Pay Tips & Best Practices, for more information about Multiple Payee Handling and Multi-Line Payee Separators.

Positive Pay Customer User Guide

About Multi-Line Payee Name Separator: The Multi-Line Payee Name Separator field is optional. This feature allows the FI to enter a character to be used to separate Multiple Payee Names on separate lines of an issued check. Currently, the system restricts the allowed characters to the following: ; | , - _ / . The user must be aware that using a separator character appearing elsewhere in the payee name might conflict with the file itself. Examples of scenarios where problems might arise are listed below. Within a Comma Separated file (.csv), different data fields are separated by a comma. Therefore, a comma cannot be used in the data field itself, or the .csv will read the comma as a separator before the next field. Therefore, listing two payees for an item in this way: “Elain Archeron,Nesta Archeron” will cause issues reading the .csv file. In this scenario, the user should select a multi-line payee name separator character that will not cause an issue, such as a semicolon. “Elain Archeron;Nesta Archeron” in the Payee Name field of the .csv file will process correctly. If the user selects a separator character that would ever appear in a payee name field, such as a dash (-), the system would then separate the data before and after the character as separate payees. For instance, if the user has selected a dash (-) as the Multi-Line Payee Name Separator, and a common payee used is “In-and-Out Burger”, the system will interpret four payees (e.g., In, and, Out, Burger). In this case, the user should select a multi-line payee name separator that will not cause such issues, such as a pipe (|) or a semicolon (;) for cases of multiple payee names. Please refer to Section X. Payee Positive Pay Tips & Best Practices for more information about multiple payee name handling.

Positive Pay Customer User Guide The mapping section below displays based on the file type selected. Not all fields/ options seen in these graphics may be available for your organization based on settings configured by your financial institution. Excel and separated files require Clients to define the column data elements that will be found.

Positive Pay Customer User Guide Fixed Width files require the Client to define the start and end position in which the data element is located.

Positive Pay Customer User Guide The mapping section on the lower part of the screen displays the required fields. The Check Serial # and Amount fields are always required. The Client must specify whether the amount data in the imported file will or will not contain decimal points. For example, if the Amount value is set to Fractional Dollars, then 100, 100.0 and 100.00 are all processed the same. If the Amount value is set to Whole numbers of cents, the system divides by 100 and saves it as a dollar value. For example, a value of 100 would be saved as $1.00 in the system. The Client can import additional data by checking the Add box next to the desired data element. If the Status box is not checked (as shown below), Check Positive Pay (PRO-CHEX) will load all issue items with a status of Issued. If the Client file represents Voided items as a negative number, the Client can check the box Treat Negative Amount as Void and PRO-CHEX will status any item in the file with a negative value as Voided. Issuance with a $0 amount will also be treated as void.

Positive Pay Customer User Guide

If the Client checks the Status box additional fields displays as shown below. If the Client’s accounting system exports issue items with an Issued or Voided status, no additional action is required. If the Status box is checked for a template, and this information is not provided in the issue file loaded,

the system will give each record an ISSUED status. In addition, the STOPPED status may not appear in the Template configuration screen if the FI has disabled stop payments. If the accounting system used exports issued items with a value of X and voided items with a value of Y, the user can identify the values as shown below so Check Positive Pay (PROCHEX) can translate the data appropriately when importing the data.

Positive Pay Customer User Guide A description has been provided below to define system behavior if additional data elements are included. Account #

If the account box is selected, the user can import one file that contains issue items for multiple accounts. If the account box is NOT selected, when a Client user loads a file through the Client portal, Check Positive Pay (PRO-CHEX) will require the user to select the account the checks were issued on.

Issuance Date

If the issuance date box is NOT checked, Check Positive Pay (PROCHEX) will default the issue date to date the file was loaded. If the issuance date box is checked, the file must contain an issuance date for each item. For Excel files, PRO-CHEX translates the data format used in the file. For separated and fixed width files, the Client must define the date format being used as shown in the screenshot below. The formats displayed are examples only. A complete list of date formats can be found at: https://docs.oracle.com/javase/8/docs/api/java/time/format/ DateTimeFormatter.html#patterns

Payee Name

The Payee Name box appears if one or more accounts are configured for payee positive pay. If the payee name box is checked, Check Positive Pay (PRO-CHEX) requires the payee name for accounts configured for payee positive pay. If payee name is provided for accounts not enrolled in payee positive pay, the payee name data will be ignored when the file is loaded. For Excel or delimited files, the complete and single payee name is expected in a single column. For fixed width files, the complete and single payee name must be contained in the file between the starting and ending position. This field supports both alphabetic and numeric characters. When a payee name is required in an issuance file, values consisting of only white space (i.e., all spaces) will be considered the same as an empty value and will not be accepted. If the Multiple Payee Names feature is enabled, the Issuance Payee name may display more than one payee. However, Multi-Line Payee Names cannot be used on accounts that have a Custom Payee Box enabled. 37

Positive Pay Customer User Guide

F. Loading Issue Files NOTE: ■ The Load Issuance File user privilege must be enabled. ■ If Multiple Payee Names feature is enabled, Check Positive Pay (PRO-CHEX) supports more than one payee name in the Payee Name field of issuance files. Please see Step #2 below for more information. ■ Multi-Line Payee Names cannot be used on accounts that have a Custom Payee Box enabled. ■ If Payee Name is a required field in the issuance template used, issuance files in which the payee name field contains values consisting only of white space (ex, all spaces) will be considered the same as an empty value and will not be accepted. ■ Issue file loading will strip and ignore dollar signs on dollar amounts, and double and single quotations around data fields. ■ For best results, users should not load issue files with mixed account numbers unless they have access to all the listed accounts. Loading issue files with account numbers for which the user has no access will cause errors. ■ There is a 100-character limit on issuance file names. ■ In the case of an issuance file containing Voids or Stops which are being loaded to overwrite previously issued (outstanding) items, the system will update the status of the issued items but will keep the original amount of the issued item, even if the Void/ Stop amounts are listed in the issuance file.

Check Positive Pay (PRO-CHEX) allows Client users to load issue files into the system for use in matching. PRO-CHEX accepts these files in a variety of formats, used in conjunction with file templates (covered in the previous subsection). 1. From the Client Portal: a. Check Positive Pay (PRO-CHEX) module, click Perform > Issue File Load.

Positive Pay Customer User Guide b. The Load Check Issuance File page appears.

c. Select the Template drop-down box to select from a list of existing templates. Select one of the available templates listed. If only one template is available for a client, the drop-down box selects that template by default.

d. If the template selected was created without the Account field enabled, a drop-down box will display so that an Account can be selected. Select from the list of accounts. If only one account is available for a client, the drop-down box will select that account by default.

Positive Pay Customer User Guide e. The file upload interface appears. Click the Browse button to select the appropriate file.

Once the file is selected, it displays in the upload interface.

Remove

The file is removed from the page.

Browse

Use Browse to locate the file you want to load.

Upload

The file will be uploaded.

Positive Pay Customer User Guide g. The Status Bar displays the Current Status of the file.

h. If errors are encountered during the initial processing of the issuance file, the Parse Errors display appears, allowing the user to view the error detail within the file. The most common reason this error would appear is because the file contains improper formatting. At this point, the user will have the option to: Correct those errors. Delete individual errors. This feature only displays if there are errors in the file and is only available until errors have been corrected and the file is saved. ■ Delete all errors. This feature only displays if there are errors in the file and is only available until errors have been corrected and the file is saved. ● This will retain the totals and counts for audit history. ■ Discard the file. This feature appears when there is an error in the file. This option is not available after corrections have been made and saved. This will remove the file and its contents from the system. ■ ■

Positive Pay Customer User Guide In this case, the account numbers in the issuance file were entered incorrectly and need to be corrected before the file can be fully processed and loaded. i.

Click on any fields highlighted in red to make updates or changes.

In this example, the user is presented with an account number drop-down so they can choose the correct account number for the issuance item. j.

Once all errors are corrected, the red highlights are no longer visible, and the file can be reprocessed by clicking the Save and Submit button. This feature is only available until all errors are corrected, deleted, or discarded.

k. The file will be returned to processing.

Positive Pay Customer User Guide l.

If the file processes successfully, the user can view the details on all the items in the file.

If there are no errors in the file during the initial load, the file will automatically display as approved and complete. If an issuance file needs to be deleted for any reason, click on the Delete button and the file will be removed. Deleting a file will retain item counts and totals as audit history. NOTE: Files are only eligible for deletion if every item in the file is still in an available for matching status. If just one item in the file has been paid, the file cannot be deleted.

Positive Pay Customer User Guide 2. Multiple Payees: Check Positive Pay (PRO-CHEX) can support customers with multiple payee names on issued items. The system scores multiple names on a check against information provided in the issuance file. a. When the Client user loads an issue file into the system, the loaded file is processed using the Issue Template set up within Check Positive Pay (PRO-CHEX). The Issue Template allows for selection of a Multi-Line Payee Separator, a character chosen to separate the names of multiple payees in the issue file. b. If multiple payees are listed on a single line of a check, no action needs to be taken. c. If multiple payees are listed on two or more separate lines on a check, the multiple payee separator character (which should match the one designated in the template), must be used between each name. In the example below, the Multi-Line Payee Name Separator designated in the Issue Template is a pipe (|). The issue items shown are entered with the pipe separator between each name, with no spaces.

When the issue file is loaded, the system then separates the data before and after the character as separate payees. Please refer to Subsection D of this Section, Issue Templates, for more information about Multi-Line Payee Name Separators and how best to use this feature. Multi-Line Payee Names cannot be utilized on accounts that have a Custom Payee Box enabled.

Positive Pay Customer User Guide 3. Issuance Dual Approval: Some clients may have the optional Issuance Dual Approval feature enabled, if offered by the FI. In this circumstance, loaded issue files must be approved by a second client user or, if no second user is available to approve the file, the client can request the FI approve the issue file. Please refer to Subsection H. Issuance Dual Approval for more information about the Dual Approval process. 4. Disable Stop Payments: When the FI has disabled stop payments, client users cannot create new stopped issue items or modify previously stopped issue items. The FI can, however, feed stop pay items from the core banking system. a. If a user loads an issue file with serial numbers the FI has loaded a stop pay on, the system will not accept the file.

G. Issue File Status

Positive Pay Customer User Guide

G. Issue File Status The Issue File Status feature provides Client users the ability to view and/or manage issue files loaded or manually entered by the client. The disposition or status of the file is available. If enabled by the FI, Check Positive Pay (PRO-CHEX) also offers an option for FI and/or Client users to receive issue load alerts when an issue file is loaded successfully or loaded with errors. (Please refer to Appendix A – PRO-CHEX Message Alerts to see examples of these alerts.) Authorized client users can also manage these files as outlined in the next section. 1. View Issue File Status NOTE: ■ The View Issuance File Status user privilege must be enabled. a. Within the Check Positive Pay (PRO-CHEX) module, click View > Issue File Status.

b. The Issuance Files Status page appears.

c. To filter the date range of files shown, click on the Date Range drop-down.

Positive Pay Customer User Guide d. To narrow the search results, click Filters and a window containing additional search criteria will appear.

Issuance Load ID The ID number associated with the specific file. Status

Client_Approved

The file was approved by the client.

Client_Discarded

Client discarded means a client user decided to discard the issue file before it was fully processed into the database.

Client_Rejected

If Issuance Dual Approval is configured for a client, Client Rejected means a client user rejected the issue file during the dual approval process.

Deleted

A deleted file has been processed into the system but was removed by an FI or Client user. The file information will still be in the system and can be found in the Issue warehouse.

Edit_Pending

A file in this status was loaded with errors. Before the file can be processed into the database and be displayed in the issue warehouse or be used in matching, the errors will need to be cleaned up or removed from the file. When a file is loaded with errors, the file will be purged after 3 business days. The date that the file will be purged will be shown in the Issue File Status screen.

Failed

The file failed to load.

FI_Approved

The file was approved by the FI.

Positive Pay Customer User Guide FI_Rejected

If Issuance Dual Approval is configured for a client, FI rejected means an FI user rejected the issue file during the dual approval process.

Ineligible_Items

The file contains ineligible items. Ineligible items can include issued items with the same serial number as an existing issuance item that has been paid, an existing issuance found in a stopped status where stop editing has been disabled, or the issuance item in the file is in a STOPPED status, and stops are disabled by the FI. These items will not be processed but will not prevent the other items in the Issue file from being loaded.

The file is loading.

Processing

The file is processing.

Queued

The file is in line awaiting a status change.

Suspended

The file has been suspended. “Suspended” status can be related to the Issuance Dual Approval feature. Please refer to Subsection H. Issuance Dual Approval, for more information about this feature.

Amount

System_Approved

The system is set to default approve the file.

System_Discarded

Discarded files are files a client user loaded to Check Positive Pay (PRO-CHEX) and had errors to be cleaned up. If the errors are not cleaned up by the deadline displayed under the progress bar, which is three days, the system will discard the file and will not maintain a record of the file.

Test_Approved

In test mode a client user can load issue files to make sure the issue template was created correctly and the file loaded correctly. This function informs the user if the file will process in the regular user interface, but items are not available for matching in test mode.

Enter a specific amount for the transaction. Amount Range

Click the hyperlink above the Amount field to enter an amount range or a maximum or minimum amount of transaction.

Min Amount

Minimum dollar amount of transaction.

Max Amount

Maximum dollar amount of transaction. 48

Positive Pay Customer User Guide e. Once search criteria are selected, click Apply to narrow your search results. f.

Search results are displayed in pages of 25 items. If the search contains more than 25 issue files, the results are displayed on multiple pages. Use the navigation buttons at the top of the search results to review all results.

Issuance Load ID The ID number assigned by Check Positive Pay (PRO-CHEX) when a file is loaded. The FI uses this value when contacting Alkami (formerly ACH Alert) regarding an issuance file loading problem they cannot troubleshoot themselves. These pieces of information should be provided in any helpdesk ticket opened. File Name

The file name assigned by the Client at load time. If the transactions were manually entered the file name will appear with a prefix of MANUAL followed by a system generated number sequence for ease of differentiation.

Status

Please see #4 in this section for a list of possible Status codes.

Load Date/Time The date (MM/DD/YYYY) and time (HH:MM:SS) this file was loaded.

Positive Pay Customer User Guide

Transaction Count Transaction Total View

The number of transactions in the file.

Manage

Displays Manage button if the file contains errors that can be edited. See below for more information.

The total dollar amount of the transaction. Displays the View button if a file has no errors or is ineligible to be edited. Authorized FI users can click View to get to the Delete button to delete a file. See below for more information.

Positive Pay Customer User Guide

2. Click the arrow (>) next to the Client Code to view more useful detail on each issuance file.

File ID

The ID number assigned by Check Positive Pay (PRO-CHEX) once an issuance file is processed and committed to the database. If an Issuance Load ID is present but a File ID is not, the file was received but did not load properly or has not been processed all the way to the database. The File ID is useful when contacting Alkami (formerly ACH Alert) Help Desk about a problem with a file.

Template Name

Issue Template used to load the issue file.

Status Message

Displays error messages, approval or rejection data, or indicates if an issue file has been deleted.

Click View button to view the individual issue files. The [File Name] page appears.

Positive Pay Customer User Guide File Status Bar

Displays progress of issue file. This feature automatically refreshes and keeps the user informed on the status of the file’s progress as it goes from Queued to Approved or Failed.

Load Date

The date and time loaded of each item within the file.

Account Number The Account Number of each item within the file. Serial Number

The serial number of each item within the file.

Amount

The dollar amount of each item within the file.

Payee Name

If Applicable, the name of the payee of each item within the file.

Status

Available for Matching Items marked as Available for Matching are issue items that have loaded to the system but have not been matched to a presented item.

Issuance Date

Used in Matching

Items marked as Used in Matching are issue items that a presented item has been matched to.

New Issuance Item

This status will only display in a file not loaded to the database for processing.

Ineligible for Modification

Items ineligible for modification are items matched to presented items and are either in a Current Status of paid or returned and can therefore no longer be modified.

Duplicate Issuance

Duplicate issuance items are issue items that duplicate previously loaded issue items exactly.

The date of the issued item.

Positive Pay Customer User Guide 3. Manage Issue File Status NOTE: ■ The Load Issuance File user privilege must be enabled. ■ The View Issuance File Status user privilege must be enabled. ■ The Delete Issue File Status user privilege must be enabled. ■ The Manual Issue Entry user privilege must be enabled.

a. Click the Manage button to edit errors within an issue file. The [File Name] page appears. i. Correct Items. 1) Fields highlighted in red have an error and are blocking the issue file from loading all the way to the system. 2) When a highlighted field is clicked, the user can either select the correct data from a dropdown or enter it in directly in the field. 3) Once all errors have been corrected, the user can click Save and Submit at the bottom, so the file is reprocessed.

Positive Pay Customer User Guide ii. Delete Items 1) Individual items can be deleted from the errors screen if the option is available. 2) Click the trashcan in the Delete column to delete any individual items. 3) Once items have been deleted, click Save and Submit at the bottom, so the file is reprocessed. a) The user can also click Delete All Errors at the top of the delete column. 4) This will allow the rest of the file to process into the system.

Positive Pay Customer User Guide iii. Discard a File 1) An entire issue file can also be discarded. a) Click the discard button at the bottom of the screen. b) Another option is to allow the system to discard the file automatically after three (3) business days. In both instances, the system will act as if the file never existed and any issue information from the file will not appear in any reporting or view.

Positive Pay Customer User Guide iv. Delete a File 1) Users are also able to delete an issue file if none of the items in the file have been used in matching by clicking on the Delete button. a) When a file is deleted, the items will appear in issue views and reporting.

4. Issuance Dual Approval: Some clients may have the optional Issuance Dual Approval feature enabled, if offered by the FI. In this circumstance, manual issue entry files or loaded issue files must be approved by a second client user or, if no second user is available to approve the file, the client can request the FI approve the issue file. Please refer to Subsection H. Issuance Dual Approval for more information about the Dual Approval process. 56

Positive Pay Customer User Guide

H. Issuance Dual Approval Check Positive Pay (PRO-CHEX) offers the ability to support dual approval for issuance file loads, including manual issue entries and updates to issue items within the Issue Warehouse. If enabled by the FI and configured for a client, manual issue entry files or issue files loaded by the client are held in “suspended” status until approved or rejected by a secondary user.

NOTE: ■ Approve/Reject Issue Files permission must be enabled by the FI. ■ The Approve Issue File user privilege must be enabled.

1. If a Client User has manually entered issue items or loaded an issue file requiring dual approval, another client user must approve the issue file or manual entry file. Once the file is loaded and pending approval, a message is sent via email or SMS within 30 seconds to client users with the Approve Issue File user privilege to alert them of files pending approval. 2. Within the Check Positive Pay (PRO-CHEX) module, click View > Issue File Status.

3. The Issuance Files Status page appears. Files requiring dual approval will show a status of “Suspended”. Click the Manage button to review the file.

Positive Pay Customer User Guide 4. The Issue File review page displays a File Status box at the top of the screen which outlines the Current Status of the file. The status bar will highlight “Approved/Rejected,” and will note if the file is pending approval. Approve and Reject buttons display in the File Status box.

5. A list of each issue item contained in the file displays below the File Status box. Each status displays as “New Issuance Item.” The client user can review the entries to determine if the file should be approved or rejected. The client user can also delete the file prior to and after approval by clicking the Delete button at the bottom of the screen.

Positive Pay Customer User Guide 6. If the file is to be approved, click the Approve Button. Once the file is approved, the file status displays that the file processing is complete.

a. After the approval is complete, the issue items display the status “Available for Matching.” The Delete button will still be available to delete a file after approval.

Positive Pay Customer User Guide b. Returning to the Issuance Files Status page, the file now displays a status of “Client Approved.”

7. If the file is to be rejected, click the Reject Button. a. Once the file is rejected, the file status displays that the file has been rejected by [client username]. The individual issue items no longer display in the issuance file status.

Positive Pay Customer User Guide b. Returning to the Issuance File Status page, the file now displays a status of “Client Rejected.”

NOTE: ■ If Issuance Dual Approval is enabled for a client, any updates made to issue items through file loading, manual issue entry, or modifying issue items in the Issue Warehouse will be passed through Issuance Dual Approval to be reviewed and approved by a secondary user. ■ If an issuance file is currently in “Suspended” status, the file is not released at EOD; but rather, the file remains in this status indefinitely until approved or rejected. ■ If an issuance file is currently in “Suspended” status, and the client level setting for Issuance Dual Approval is disabled, or client user privileges are removed before the affected issuance files are approved or rejected, the file remains in the Suspended status.

Positive Pay Customer User Guide

I. Issue Warehouse Check Positive Pay (PRO-CHEX) allows FI and Clients to see the status of all issued items. Authorized Client users can modify items in the Issue Warehouse. Clients can use the Issue Warehouse to search for issued items for a Client or specific account using the filtering options available.

NOTE: ■ The View Issuance Status user privilege must be enabled.

1. Within the Check Positive Pay (PRO-CHEX) module, click View > Issue Warehouse.

2. The Issue Warehouse page appears.

Positive Pay Customer User Guide 3. To filter the date range of items shown, click on the Date Range drop-down.

4. To narrow the search results, click Filters and a window containing additional search criteria will appear.

Positive Pay Customer User Guide Account

Type an account name or the last 4 digits of the account number.

Serial Number

Type the item serial number for a specific issued item.

Amount

Enter a specific amount for the transaction.

Serial Number

Issue Type

Match Status

Amount Range

Click the hyperlink above the Amount field to enter an amount range or a maximum or minimum amount of transaction.

Min Amount

Minimum dollar amount of transaction.

Max Amount

Maximum dollar amount of transaction.

Type the item serial number for a specific issued item. Serial Number Range

Click the hyperlink above the Serial Number field to enter a serial number range or a maximum or minimum serial number.

Min Serial #

Minimum serial number

Max Serial #

Maximum serial number

Issued

The check has been issued for payment.

Voided

The check has been voided by maker.

Stopped

The check has a stop payment placed on it.

Paid

There was a presented item for the issued item, and it has been paid.

Returned

There was a presented item for the issued item, and it has been returned.

Outstanding

There has been no presented item for the issued item, and it remains outstanding.

NOTE: ■ Issuance data is available for 1 year as the default setting, but this can be configured differently by the FI. ■ If Additional Issue Fields are being used, a section to filter by that data will display.

5. Once search criteria are selected, click Apply to narrow your search results.

Positive Pay Customer User Guide 6. Search results are displayed in pages of 25 items. If the search contains more than 25 issue items, the results are displayed on multiple pages. Use the navigation buttons at the top of the search results to review all results.

Item ID

Account Number

The ID number assigned by Check Positive Pay (PRO-CHEX) when a file is loaded. The FI uses this value when contacting Alkami (formerly ACH Alert) regarding an issuance file loading problem they cannot troubleshoot themselves. Displays the Account Number for the item.

Serial Number

Displays the issued item’s serial number.

Positive Pay Customer User Guide

Payee Name

Displays the name of the payee for the item.

Issue Type

Issued

The check has been issued for payment.

Voided

The check has been voided by maker.

Stopped

The check has a stop payment placed on it.

Paid

There was a presented item for the issued item, and it has been paid. There was a presented item for the issued item, and it has been returned. There has been no presented item for the issued item, it remains outstanding.

Match Status

Returned Outstanding

Amount

Displays the dollar amount for the issued item.

Load Date/Time

Date (MM/DD/YYYY) and time (HH:MM:SS) the item was loaded.

Issuance Date

The date of the issued item. Click the pencil icon to update the item’s Amount, Status, or Issuance Date.

Update

If Issuance Dual Approval is enabled for a client, any updates made to issue items through file loading, manual issue entry, or modifying issue items in the Issue Warehouse will be passed through Issuance Dual Approval to be reviewed and approved by a secondary user.

Positive Pay Customer User Guide 7. Click the arrow (>) next to the Client Code to view more detail on each issued item. The information shown in this drop-down is an audit history of all the activity that has occurred on the issue item.

Status

Issued

The check has been issued for payment.

Voided

The check has been voided by maker.

Stopped

The check has a stop payment placed on it.

Payee

Displays the payee name of the issue item.

Amount

Displays the dollar amount for the issued item.

Issue Date

The date of the issued item.

Updated By

The user who updated the issue item.

Updated Date/Time

The date and time this issued item was updated.

8. Modifying Issue Items. a. Issue items can be modified by users with a Load Issue File or Manual Issue Entry privilege. Issue items can only be modified if the Match Status = Outstanding. Click the edit pencil button under the Update column to update the issued item.

Positive Pay Customer User Guide 9. The Update Issue Item pop-up window appears.

Serial Number Amount

Check serial number. This cannot be updated on an existing issued item. Amount of the issued item. The amount can be updated.

Payee Name

The name of the Payee associated with the specific issued item. The payee name can be updated.

Status

Issued

The check has been issued for payment.

Voided

The check has been voided by maker.

Stopped

The check has a stop payment placed on it. If the FI has disabled stop payments in their configuration, Stopped may not be an option in the drop-down menu on this pop-up screen.

Cancelled

Issuance Date

The check is being cancelled by the maker. Please see next paragraph below.

The date of the issued item. The issuance date can be updated.

Positive Pay Customer User Guide 10. Issue Item Cancel: An outstanding issue item can be updated to Cancelled status. Only outstanding issue items have the option to be changed to Cancelled. Once the issue item is updated to Cancelled, the cancelled item disappears from all views except Item Lookup, Active Reconciliation (if enabled), and Audit Report for historical purposes.

11. Click Save.

12. A copy of the Issue Warehouse can be downloaded by clicking the Download As CSV button at the bottom of the Issue Warehouse screen.

Positive Pay Customer User Guide

J. Item Lookup Check Positive Pay (PRO-CHEX) provides Clients with the ability to look up all recorded data on individual issued items with the Item Lookup feature. 1. Within the Check Positive Pay (PRO-CHEX) module, click View > Item Lookup.

2. The Item Lookup page appears. All fields are mandatory.

Account

Select the Account drop-down to display a list of the Client’s Accounts.

Serial Number

Enter the serial number of the item.

3. Once search criteria are selected, click Apply to complete the item lookup.

Positive Pay Customer User Guide 4. Search results for the item are displayed. Within this screen, the lifecycle of the issued item is displayed.

Positive Pay Customer User Guide

K. Other Options Prior to Item Presentment If a Client needs to make changes to an item prior to item presentment, there are three options for doing so within Check Positive Pay (PRO-CHEX). Examples of changes that would fall under this category would be when items originally Issued are updated to Voided or Stopped status, or to overwrite existing item information such as changes in amount and/or payee. If the FI has disabled stop payments, it will affect whether a client user can perform these functions in some instances. Please see Subsection B. Status Values within this Section for more information. 1. Modifying Issue Items Issue items can be modified in the Issue Warehouse. Please refer to previous Subsection I. Issue Warehouse, for more information. 2. Manual Re-Entry To change individual items previously submitted, a Client user can overwrite the previous item as follows: a. Within the Check Positive Pay (PRO-CHEX) Module, click Perform > Manual Issue Entry.

Positive Pay Customer User Guide b. The Manual Issuance File Entry page appears. For definitions of the fields available on this screen, please refer to Subsection C of the current Section.

c. Create a Manual Entry for the item to be changed. The serial number must match the previously submitted item. Fill out all fields, updating the fields to be overwritten with the correct information. d. When all pertinent manual issuance items have been re-entered, click Save button. e. The Manual Issuance File detail page appears. For definitions of the fields shown on this screen, please refer to Subsection C of the current Section.

Positive Pay Customer User Guide 3. File Reloads To change multiple items that were previously submitted, a Client can use the Issue File Load function to reload and overwrite previous items in an Issue File. a. Once you have prepared your Issue File with all items to be overwritten, including the corrected information in the appropriate fields, upload the Issue File. Refer to Subsection F. Loading Issue Files, for more information. 4. Prior to item presentment, these changed/overwritten items can be seen in the Issue Warehouse (please refer to Subsection I within this Section for information on how to access the Issue Warehouse). Once within the Issue Warehouse screen, click the arrow (>) next to the Client Code to view more detail on each issued item. The information shown in this drop-down is an audit history of all activity that has occurred on the issue item. As you can see in the figure below, three issue items that have been updated/changed. The updates/changes from the most recent entries will overwrite the previously loaded issue item.

Positive Pay Customer User Guide

V. EXCEPTION IDENTIFICATION Check Positive Pay (PRO-CHEX) is configured to identify exceptions on issue items in a specific order. Once the first exception is triggered on an issue item, the system does not evaluate the item further. If an item is flagged with an exception and is deferred to the Client user for decision, further analysis will not be performed. Client users should be conscious when paying an exception that other validations may not have been performed, so they should examine the item. Listed below are the possible Exceptions and the order in which they are flagged by Check Positive Pay (PRO-CHEX). The Exception Code and Reason below can be customized by financial institution so the example below may vary slightly from exception codes or reasons that appear in the Client interface. Exception Order Exception Code

Reason

Issuance not found

Issuance already used

Check presented where no issue item is found to match against. Check presented with a serial number previously presented.

Issuance voided

Check presented with a serial number of an issue item marked with a void status.

Issuance stopped

Check presented with a serial number of an issue item marked with a stop status.

Issuance amount mismatch

Check presented where amount of check differs from issue amount.

Amount over limit

Transaction amount is over the limit.

Issuance date in future

Check presented with a date that is before the issuance date on the issued item.

Issuance stale dated

Issuance payee mismatch

Check presented with a date that exceeds the specified number of stale days for the account. Check presented where payee name differs from issue payee name.

Exception reason missing

This message will only appear to customers of FI’s that are in FI or Hybrid Matching mode. This exception reason is only used if the reason that is coming into Check Positive Pay (PRO-CHEX) has not been mapped in PROCHEX. 75

Positive Pay Customer User Guide

VI. MANAGING CHECK PRESENTMENT The primary objective of Check Positive Pay (PRO-CHEX) is to give users the opportunity to make pay and/or return decisions on checks presented for payment on accounts enrolled for the service. The decision function is performed in the Transaction History screen.

A. Transaction History NOTE: ■ Transactions are stored for 12 months. ■ The Transaction History user privilege must be enabled to access this screen. ■ If the user has been granted the Change Status user privilege and the transaction is available to decision, the Pay and Return buttons will be available for use. ■ Transactions that will be paid will have green shading as a background. ■ Transactions that will be returned will have yellow shading as a background. ■ Transaction status cannot be changed after the EOD cut-off time.

Check Positive Pay (PRO-CHEX) provides a function for Clients to search and view the status of checks presented on enrolled accounts, and to make decisions on presented items. Client users can use Transaction History to search for presented check items for a specific account using the filtering options available. The default filter setting is Exceptions Only. Additional transactions may be available to view and decision (such as reverse positive pay items); however, they will not be displayed unless the Exception filters option is set to Show All Transactions.

Positive Pay Customer User Guide 1. View Transaction History Within the Check Positive Pay (PRO-CHEX) module, click View > Transaction History. The Transaction History page displays all current-day transactions for all accounts to which the user has access.

Payee Review

The Review Payee button directs the user to the Payee Review screen to allow users to visually inspect presented items to ensure fraudulent transactions that may not have triggered any exceptions are identified. Please refer to subsection C. Review Payee in this section for more information.

Transaction ID

Unique ID assigned by the Check Positive Pay (PRO-CHEX) system when transactions are loaded.

Account Number

Account number the check was presented against.

Serial Number

The check number presented for payment. Clicking on the serial number displays the front and back images of the check. If an eye icon appears in the serial number column, this denotes an item processed with no serial number. Clicking on the eye icon displays the check image, if available.

Credit

This column will display if deposit information has been entered into the system.

Debit

This column displays checks.

Positive Pay Customer User Guide Current Status

Pay

Pay-System

The system is set to default pay this check.

Pay-FI

The check was paid by the FI. In the case of payment items loaded by the FI considered in a “Force Pay” status using the Standard Force Pay template, these items display with the FI-Pay status and are ineligible for changes to the transaction status.

Return

Pay-User

The check was paid by the Client User.

Pending-Pay

The check was paid by the Client User but awaits approval or rejection because the Client is enrolled in Decision Dual Approval.

Return-System

The system is set to default return this check.

Return-FI

The check was returned by the FI.

Return-User

The check was returned by the Client User.

Date

Date the check was presented for payment or loaded to Check Positive Pay (PRO-CHEX).

Change Status

If the user has been granted the Change Status user privilege and the transaction is eligible for a decision, a Pay or Return button will appear for use. If the transaction is not eligible for a decision, the button will display as Ineligible.

Exception

Various Icons inform the user of the item exception(s). Hovering over the icon gives the user a quick glance at the exception reason. Likewise, users can click the drop down arrow to the left of the transaction to see what the specific exception is for the transaction.

Positive Pay Customer User Guide Icon

Exception Code

Exception Reason

Issuance Not Found

Check presented where no issue item is found to match against.

Issuance Already Used

Check presented with a serial number previously presented.

Issuance Voided

Check presented with a serial number of an issue itemmarked with a void status.

Issuance Stopped

Check presented with a serial number of an issue itemmarked with a stop status.

Issuance Amount Mismatch

Check presented where amount of check differs from issue amount.

Amount Over Limit

Transaction amount is over the limit.

Early Presentment

Check presented with a date that is before the issuance date on the issued item.

Issuance Stale Dated

Check presented with a date that exceeds the specifiednumber of stale days for the account.

Issuance Payee Mismatch

Check presented where payee name differs from issue payee name.

Exception Reason Missing

This message will only appear to customers of Fl’s that are in Flor Hybrid Matching mode. This exception reason is only used if the reason that is coming into Check Positive Pay (PRO-CHEX) has not been mapped in PRO-CHEX.

a. To filter the date range of items shown, click on the Date Range drop-down.

Positive Pay Customer User Guide b. To narrow the search results, click Filters and a window containing additional search criteria will appear.

Account

Type an account name or the last 4 digits of the account number into the field to view transactions for one specific account or select an account from the drop-down menu.

Amount

Enter a specific amount for the transaction. Amount Range

Click the hyperlink above the Amount field to enter an amount range or a maximum or minimum amount of transaction.

Min Amount

Minimum dollar amount of transaction.

Max Amount

Maximum dollar amount of transaction.

Serial Number Type the item serial number for a specific issued item. Serial Number Range Min Serial #

Click the hyperlink above the Serial Number field to enter a serial number range or a maximum or minimum serial number. Minimum serial number

Max Serial #

Maximum serial number

Positive Pay Customer User Guide Positive Pay Type

This filter defaults to Any. Select the Positive Pay Type drop-down to filter by: Standard: Transactions on accounts set up for Standard Positive Pay Reverse: Transactions on accounts set up for Reverse Positive Pay Blocked: Transactions on accounts set up for Block Positive Pay None: Transactions on accounts set up for No Positive Pay

Exceptions

This defaults to viewing Exceptions only. Select the Exceptions drop-down to filter by: Exceptions Only: Only exceptions are displayed. Show all Transactions: Exceptions and non-exceptions are displayed. No Exceptions: Only non-exceptions are displayed. The user can opt to set an option to be the default for future filtering by clicking the Default checkbox once the selection has been made.

Exception Type

This user documentation displays the standard exception reason labels; however, each FI can customize these during implementation, so what is seen in the documentation may differ from what users see in the service if their FI has customized the labels.

Pending Dual Approval

If the FI has enabled Decision Dual Approval, this field may be available in the filter window. The user may select from the drop-down to filter transactions based on whether or not they are pending approval. • •

Yes – will display only transactions that are pending approval. No – will display only transactions that are not pending approval

The default will be set to “Show All”. For more information regarding Decision Dual Approval, please see Section VIII, Decision Dual Approval. Transaction Type

This filter defaults to Any. Select the Transaction Type drop-down to filter by: Check: Check transactions only Deposit: Deposits only

Transaction ID A unique number assigned to the transaction when loaded. Items

Defaults to Any Items. Select the drop-down to select one of the following: • Any Items: This includes all items, including client pay and adjust items. • Adjusted Items: Checks that were paid by a client user and either the amount and/or serial number was adjusted. 81

Positive Pay Customer User Guide Transaction Status

Pay

Pay-System

Pay-FI

The system is set to default pay this check. If a user takes no action before EOD, the check will pay. The check was paid by the FI. In the case of payment items loaded by the FI in a “Force Pay” status using the Standard Force Pay template, these items display with the FI-Pay status and are ineligible for changes to the transaction status.

Return

Pay-User

A user changed the transaction status from a Return to a Pay status.

Pending-Pay

The check was paid by the Client User but awaits approval or rejection because the Client is enrolled in Decision Dual Approval.

Return-System The system is set to default return this check. If the user takes no action before EOD, the check will be returned. Return-FI The check was returned by the FI. Return-User

A user changed the transaction status from a Pay to a Return status.

c. Once search criteria are selected, click Apply to narrow your search results. d. Search results are displayed in pages of 25 items. If the search contains more than 25 issue items, the results are displayed on multiple pages. Use the navigation buttons at the top of the search results to review all results.

e. Summary Debit and/or Credit transaction totals are also displayed at the top of the screen above the navigation buttons.

Positive Pay Customer User Guide f.

Click the arrow (>) next to the Client Code to view more detail on each issued item. The information shown in this drop-down is an audit history of the activity on the issue item.

Positive Pay Type

This indicates the type of positive pay that the account is set for: Standard, Reverse, and Payee are the different types that could display here.

Issuance Payee Name of payee submitted with the transaction presented for payment. Name Issuance Serial Serial number on the issued item uploaded by the client. Number Issuance Amount Amount on the issued item uploaded by the client. Issuance Date

Date the issued item uploaded by the client.

Original Serial Number

Serial number submitted with the transaction presented for payment.

Original Amount

Amount submitted with the transaction presented for payment. This number may be different than displayed in the top line. For instance, if an item was adjusted in pre-scrub by the FI or if the FI is allowing Clients to adjust.

Return Date

Date the item was returned.

Payment Date

Date listed within the transaction file.

Positive Pay Customer User Guide Return Reason Reason for return. Client users can click on the Return Reason hyperlink to open a pop-up window to select a different return reason as needed.

When an item is in Pending-Pay status and awaiting approval or rejection because the account is set up for Decision Dual Approval, the Return Reason hyperlink will be disabled. Loaded Exception Reason

This user documentation displays the standard exception reason labels; however, each FI can customize these during implementation so what is seen in the documentation may differ from what the User may see in the service if their FI has customized the labels. Please refer to Section V. Exception Identification to view a list of all standard exception labels.

Originally Cleared Date

In the case of Duplicate Presentment exceptions, the Originally Cleared Date will display the cleared date of the originally presented item.

Originally Cleared Amount

In the case of Duplicate Presentment exceptions, the Originally Cleared Amount will display the cleared amount of the originally presented item.

Originally Cleared Status Payee Match Score

In the case of Duplicate Presentment exceptions, the Originally Cleared Status will display the status of the originally presented item.

Payee Analysis

Will display as Pass or Fail based on payee scoring.

Adjust

This button will allow users to adjust a serial number from the value presented to a new value and/or the amount from the amount presented to a new value. Please see subsection B. Optional Actions for more information on this function.

Notes

This feature allows FI and Client users to make notes regarding a transaction in Pay or Return status. The Note button displays how many Note entries have been made on a transaction. Click on the Notes button to enter in pertinent information regarding a transaction.

Payee scoring is addressed in the account configuration screen. The score displayed here is the score assigned by the payee analysis engine when the payee name on the check was compared to the payee name provided on the issue item file.

Positive Pay Customer User Guide 2. Change Transaction Status a. If the user has been granted the Change Status user privilege and the transaction is eligible for a decision, a Pay or Return button appears for use. If the transaction is not eligible for a decision, the button will display as Ineligible. Reasons for the “Ineligible” message could include the item being a deposit, the item already being decisioned or left at the system default, or the item being a Force Pay item loaded by the FI using the Standard Force Pay template. 3. Change Status – Pay a. a. If the Current Status on an issued item is set to Return, the Client can opt to change the status to Pay if the Client determines the check should be paid. b. b. Click the Pay button under the Change Status column.

The Change Status button will then change to Return, and the Current Status column will update to “Pay-User.” 4. Change Status – Return a. If the Current Status on an issued item is set to Pay, the Client can opt to change the status to Return if the Client determines the check should not be paid. b. Click the Return button under the Change Status column.

Positive Pay Customer User Guide c. Check Return Reason pop-up window appears. Select the appropriate reason for the Check Return. Please note that the list of return reasons displayed are the system default but may vary depending on the way the financial institution defines them.

Amount Incorrect

The dollar amount is incorrect.

Duplicate

This item has already been presented.

Fraudulent

Fraudulent item.

Prior Stopped

This item has a stop payment placed on it.

Prior Void

The item was previously voided.

Refer to Maker

Refer to the maker of the check.

Serial # Incorrect

The serial number on the item is incorrect.

Signature Irregular

The signature does not match.

Signature Missing

The item is missing a signature.

Stale Date

The presented item has a date greater than the number of stale days allowed on the corresponding issued item.

Suspect Item – Review Required

The item is suspicious and possibly fraud – please review further.

Positive Pay Customer User Guide d. Click Save. The system displays a success message.

e. The Change Status button will then change to Pay, and the Current Status column will update to Return-User.” 5. For transactions that list the Duplicate Presentment exception reason, the user can view the duplicate and previously presented check items to visually inspect the checks. Click on the Duplicate Presentment hyperlink to open the Check Image window.

Positive Pay Customer User Guide 6. The Check Image window opens, with the Duplicate Exception item and Previously Presented item displaying so that the user can visually inspect both items. Click the Show Back button to view the back of the checks.

Positive Pay Customer User Guide 7. The backs of the Duplicate Exception item and the Previously Presented item appear. The user can visually inspect the images. Click the Show Front button to return to the front view of the checks. Click the Close button to return to the Transaction Warehouse view.

8. In the expanded transaction view, both the current and previously presented check data displays for comparison.

9. A copy of the Transaction History can be downloaded by clicking the Download As CSV button at the bottom of the Transaction History screen.

Positive Pay Customer User Guide

B. Optional Actions 1. Confirm Paying Exceptions (May or may not be implemented by the FI) a. When the first exception is triggered on a presented item, additional validations are not performed. If the system detects a user pay decision on a check that additional validations were not performed (such as payee name analysis which is the last validation to occur), an image of the check is presented to allow the user to visually inspect the check. The user must click the confirm button to finalize the pay decision. b. If the user decides to pay an item that is set to return, a pop-up window appears to confirm that this is the action they wish to take. The window displays an image of the check and other details for the user to review before confirming that they want to pay the item.

Positive Pay Customer User Guide i.

Click Pay to pay a check.

1. A pop-up window with check information displays for the user’s review. 2. Once the user has reviewed the information presented, they can decide to Confirm so that the check will be paid or to Cancel so that the check will be returned.

Positive Pay Customer User Guide

C. Review Payee Although payee analysis is a good technology, it is not a perfect technology. The Review Payee functionality has been introduced to allow users to visually inspect presented items to ensure fraudulent transactions that may not have triggered any exceptions are identified. 1. If Payee Positive Pay is configured by the FI, the Review Payee feature may be available in Transaction History. Review Payee allows users to easily view non-exception items for transactions on accounts enrolled in Payee Positive Pay. 2. From within Transaction History, the Payee Review button appears at the top of the screen with the total number of non-exception items available for review in parentheses. Click the Review Payee button to proceed.

Positive Pay Customer User Guide 3. The Payee Review screen appears. The Payee Review page displays all current day non-exception transactions for all accounts to which the user has access.

Transaction ID

Unique ID assigned by the Check Positive Pay (PRO-CHEX) system when transactions are loaded.

Account Number Account number the check was presented against. Serial Number

The check number presented for payment.

Amount

The amount of the check.

Issuance Payee

Name of payee submitted with the issuance presented for payment.

Image View

The front image of the check will display for review

Change Status

The Return button is available for the user to change the status of the transaction to Return.

Positive Pay Customer User Guide 4. To narrow the review screen results, click Filters and a window containing filter criteria will appear.

Account

Amount

Type an account name or the last 4 digits of the account number into the field to view transactions for one specific account, or select an account from the drop-down menu. Enter a specific amount for the transaction. Amount Range

Serial Number

Min Amount

Click the hyperlink above the Amount field to enter an amount range or a maximum or minimum amount of transaction. Minimum dollar amount of transaction.

Max Amount

Maximum dollar amount of transaction.

Type the item serial number for a specific issued item. Serial Number Range Min Serial #

Click the hyperlink above the Serial Number field to enter a serial number range or a maximum or minimum serial number. Minimum serial number

Max Serial #

Maximum serial number

5. Once search criteria are selected, click Apply to narrow your results. 6. Results are displayed in pages of 25 items. If the Review Payee screen contains more than 25 items, the results are displayed on multiple pages. Use the navigation buttons at the top of the review screen to review all results.

Positive Pay Customer User Guide 7. To change the transaction status to Return, click the Return button.

9. A pop-up window will display to select a check return reason. Select the appropriate return reason, and click the Save button to proceed.

Positive Pay Customer User Guide 10. Once the return reason is saved, the user will be returned to the Review Payee screen, and the Return button will be displayed as an Undo button. If the user determines that the Return should be undone, clicking the Undo button will change the status back to Pay, and the screen will revert the button to Return.

11. Click the Back button at the top of the screen to return to the Transaction History screen.

12. The user is returned to the Transaction History view and may see the following alert message:

Positive Pay Customer User Guide

13. Refresh the browser window to view the changes to the Transaction History screen. The user should see the previously changed item with the status of Return-User.

D. Notes 1. 1. If enabled, the Notes feature allows FI and Client users to make notes regarding a transaction. The Notes button displays the number of Note entries added to a transaction. Click the Notes button to enter in the information regarding the transaction.

2. The Transaction Notes screen appears. Users can enter notes within this interface, and a log of notes added to a transaction appears in the lower part of the screen.

Positive Pay Customer User Guide

3. The user can click the Cancel button to cancel without placing notes on the transaction.

4. Once a Notes entry is completed, the user must click Save to record the entry.

Positive Pay Customer User Guide 5. The created note will now display in the audit history log at the bottom of the screen, along with any other notes previously added to this transaction.

6. The user can enter up to 4,000 characters in the Transaction Notes window. Multiple notes can be added within the 4,000 character limit. 7. Click the X button at the top right of the Transaction Notes window to close the window.

NOTE: ■ Notes can be added to transaction after EOD processing. 99

Positive Pay Customer User Guide

VII. MATCH PAID ITEMS Check Positive Pay (PRO-CHEX) supports the ability for FI and Client Users to match issue items loaded to the system after cleanup has been performed to Paid No Issue exception items. NOTE: ■ The Paid No Issue Matching user privilege must be enabled. ■ If Reconciliation is enabled and both the issuance and payment date precede the period start date, matching is not allowed.

A. Paid No Issue Match 1. From the Check Positive Pay (PRO-CHEX) module, click Perform > Paid No Issue Match.

2. The Paid No Issue Match screen displays with the current month date range by default. To filter the date range, click on the Date Range drop-down, select the desired range, and click the Apply button.

100

Positive Pay Customer User Guide 3. In the Client portal, the Paid No Issue Match screen must be filtered by Account to display data. Type an account name or the last 4 digits of the account number to generate the SmartSearch filter.

4. Once the Account filters has been entered, the screen displays all outstanding issue items that can be matched to Paid No Issue items previously cleared. The first line in each row presents information on the outstanding issue item, and subsequent lines will be one or more paid no issue items that can be matched to the outstanding item.

Select [all | none] The user can opt to select individual transactions by clicking the checkbox at the left of the row. If an issue item has more than one matching incoming transaction, the radio button for the transaction the user wants to tie to the issue item must also be selected. The client can also select all transactions by clicking “all” in the Select column. The client can de-select all transactions by clicking “none”. Serial Number

The serial number of the item.

101

Positive Pay Customer User Guide Paid Amount

Amount of the paid no issue item. Clicking the eye icon next to the paid amount will allow the user to view the check image of the paid no issue item.

Issue Amount

The amount of the outstanding issue item.

Issue Date

The date of the outstanding issue item.

Issue Type

Issuance type of the outstanding issue item. Matching can be performed to Issued, Voided, or Stopped unmatched issuance items. The payee name listed on the outstanding issue item.

Payee Name

5. The user can view check images of the paid no issue items to compare to the outstanding issue item to determine if the items are indeed a match. Click the eye icon next to the paid amount for any paid item to view.

102

Positive Pay Customer User Guide 6. A pop-up window with images of the front and back of the check displays. If there is more than one paid items, examine both check images to confirm if either is a match. Click the Close button to close the check image view.

7. Once a match is found, click the checkbox at the left of the row to activate that row for matching. Click the radio button of the paid no issue item that matched the outstanding issue item. Single or multiple rows can be activated and selected for matching.

103

Positive Pay Customer User Guide 8. Once selections are made, click the Match Selected button at the bottom of the Paid No Issue Match screen to complete the match.

9. The Confirm Matching screen displays. Select Confirm to match any selected Issuance and Transaction items. Click the Cancel button to cancel without matching.

10. Once Confirm is clicked, the system displays a success message.

104

Positive Pay Customer User Guide 11. The paid transaction now shows the matched issue item data in Transaction History.

12. Viewing the check data in the Item Lookup interface shows the complete audit history of the transaction.

105

Positive Pay Customer User Guide

VIII. DECISION DUAL APPROVAL Check Positive Pay (PRO-CHEX) can support dual approval for client decisioning. If enabled by the FI and configured for a client, any transactions in a Return status that are decisioned by the client will be held in “Suspended” status until approved or rejected by a secondary user.

NOTE: ■ Client Decision Dual Approval permission must be enabled by the FI. ■ The Decision Dual Approval user privilege must be enabled.

If Decision Dual Approval is enabled and a Client User decisioned any transaction in the Transaction History to the status of User-Pay, or adjusted the serial number or amount of any transaction, approval is requested to approve the change of the transaction status. The secondary client user must approve the transaction decision. 1. Within the Check Positive Pay (PRO-CHEX) module, click Perform > Transaction Approval.

106

Positive Pay Customer User Guide 2. The Check Transaction Approval screen displays.

Select [all | none]

The client user can select individual transactions by clicking the checkbox at the left of each row. The client can also select all transactions by clicking “all” in the Select column. The client can de-select all transactions by clicking “none”.

Account Number

Displays the masked account number for the item.

Current Serial Number

The current serial number of the item. The client user can click the hyperlink in the serial number to view the check image. An eye icon denotes an item that has no serial number.

Requested Serial Number

The updated serial number, if changed by the client user performing the decisioning.

Current Amount

Original amount of the transaction.

Requested Amount

The updated amount, if changed by the client user performing the decisioning.

Date

Date of the transaction.

Current Status

Current Status of the transaction.

Requested Status

The status of the transaction, if approved.

Exception

If the transaction is an exception, an exception identifier appears in this column.

107

Positive Pay Customer User Guide

3. Clicking the arrow (>) at the far left of each row expands the view for more information about the transaction.

Transaction ID

Unique ID assigned by Check Positive Pay (PRO-CHEX) when transactions are loaded.

Requested By

The client user who requesting the change of transaction status.

Loaded Exception Reason

The exception identified when the transaction was loaded.

4. After examining the transactions pending approval, the client user can select items to approve or reject by clicking the Approve or Deny buttons at the bottom of the screen. 5. If a transaction is Approved, a Confirm Approval pop-up window appears. The user can click the Confirm button to confirm the approval of the transaction status change, or click the Cancel button to return to the Check Transaction Approval Screen.

108

Positive Pay Customer User Guide 6. If a transaction is Rejected, a Confirm Rejection pop-up window will appear. The user can click the Confirm button to confirm the rejection of the transaction status change, or click the Cancel button to return to the Check Transaction Approval Screen.

7. Updating Transactions in Pending-Pay Status: In the case of No Issue transactions that are in Pending-Pay status awaiting approval or rejection, the user may do the following: a. Add Issue: A transaction currently in Pending-Pay status can be updated in the Transaction History page by expanding the view on the transaction and clicking the Add Issue button. Before changes, the transaction appears without payee information as shown below.

In Transaction History, click the Add Issue button.

109

Positive Pay Customer User Guide ii. Complete the Add Issue pop-up screen by entering a Payee Name and clicking the Save button.

iii. The changes are then reflected in the Transaction Approval screen, as shown below.

b. Items currently in Pending-Pay status will not allow the user to adjust the serial number or amount.

NOTE: ■ If a transaction decision is currently awaiting approval from a secondary client user and the transaction is not approved or rejected by EOD, the transaction will revert to its original status. For instance, if a transaction is set to default return and a client user decisions the item to be paid, if that decision is not approved by EOD, the item will revert to the default return status.

110

Positive Pay Customer User Guide

IX. REPORTS NOTE: ■ Reports are available for one (1) year.

A. Adjusted Items Report NOTE: ■ The Adjusted Items Report user privilege must be enabled.

1. The Adjusted Items report allows the client user to view all transactions adjusted by the FI or client within the Check Positive Pay (PRO-CHEX) system. 2. From the Check Positive Pay (PRO-CHEX) module, click Reports > Adjusted Items.

111

Positive Pay Customer User Guide 3. The Adjusted Items page appears.

4. The Date Range field defaults to showing one day of transactions. To filter a longer date range of transactions shown, click on the Date Range drop-down.

112

Positive Pay Customer User Guide 5. To narrow search results, click Filters and a window containing additional search criteria appears.

Account

Type an account name or the last 4 digits of the account number.

Amount

Enter a specific amount for the transaction. Amount Range

Min Amount

Click the hyperlink above the Amount field to enter an amount range or a maximum or minimum amount of transaction. Minimum dollar amount of transaction.

Max Amount

Maximum dollar amount of transaction.

Serial Number Type the item serial number for a specific issued item. Serial Number Range

Adjustment Made By

Min Serial #

Click the hyperlink above the Serial Number field to enter a serial number range or a maximum or minimum serial number. Minimum serial number

Max Serial #

Maximum serial number

Select a user from the drop-down menu to filter to display only changes made by that user. Users can include FI or client users.

6. Once search criteria are selected, click Apply to narrow your search results.

113

Positive Pay Customer User Guide 7. Adjusted Items transactions are displayed in pages of 25 items. If the report contains more than 25 transactions, the results are displayed on multiple pages. Use the navigation buttons at the top of the report results to review all results.

Account Number

Displays the Account Number for the adjusted item.

R/T Number

Displays the routing number associated with the adjusted item.

Original Serial Number Displays the item’s original serial number. Serial Number Change Displays the serial number after the item was adjusted. Encoded Amount

Displays the original encoded amount of the item.

Amount Changed To Amount of Adjustment Needed Date

Displays the amount of the transaction after the item was adjusted. Displays the total dollar amount difference between the encoded amount and the adjusted amount. Displays the date the item was adjusted.

Adjustments Made By

Displays the name of the user who adjusted the item.

8. The entire Adjusted Items Report can be downloaded as a CSV file (Comma Separated Value). Click on the Download as CSV button at the bottom left of the Adjusted Items Report screen.

114

Positive Pay Customer User Guide

B. Issue Item Status Report NOTE: ■ The Issue Item Status Report user privilege must be enabled.

1. Within the Check Positive Pay (PRO-CHEX) Module, click Reports > Issue Item Status.

115

Positive Pay Customer User Guide 2. The Issue Item Status Report page appears. The page defaults to Outstanding items but can be changed to Paid items or Returned items.

Issuance Status

Outstanding

Any items that have not been matched and decisioned yet.

Paid

Any items that have been matched and paid.

Returned

Any items that have been matched and returned.

Stops

Any items that have a stopped status.

Voids

Any items that have a voided status.

Start Date

The start date is only applicable when filtering by Paid or Returned Issuance Status.

End Date

The end date will default to the current date.

Summary Information Only

Will show summary, rather than detailed, information on the displayed data.

Account

To further narrow down the results the report can be filtered by a specific account.

3. Once search criteria are selected, click Apply to narrow your search results. 4. Search results are displayed in pages of 25 items. If the search contains more than 25 transactions, the results are displayed on multiple pages. Use the navigation buttons at the top of the search results to review all results.

116

Positive Pay Customer User Guide 5. The Issue Item Status report will populate below the search window based on filters selected. a. Filtering for Outstanding Issuance Status:

Account Number

Displays the masked account number.

Serial Number

Displays the serial number for the item.

Payee Name

Displays the payee name, if applicable.

Amount

Displays the amount of the issuance item.

Issuance Date

Displays the date of the issuance item.

117

Positive Pay Customer User Guide b. Filtering for Paid Issuance Status:

Account Number

Displays the masked account number.

Serial Number

Displays the serial number for the item.

Payee Name

Displays the payee name, if applicable.

Issuance Amount

Displays the amount of the issuance item.

Issuance Date

Displays the date of the issuance item.

Transaction Amount

Displays the amount of the presented item.

Payment Date

Displays the payment date of the item.

118

Positive Pay Customer User Guide c. Filtering for Returned Issuance Status:

Account Number

Displays the masked account number.

Serial Number

Displays the serial number for the item.

Payee Name

Displays the payee name, if applicable.

Issuance Amount

Displays the amount of the issuance item.

Issuance Date

Displays the date of the issuance item.

Transaction Amount

Displays the amount of the presented item.

Return Date

Displays the return date of the item.

119

Positive Pay Customer User Guide d. Filtering for Stops:

Account Number

Displays the masked account number.

Serial Number

Displays the serial number for the item.

Payee Name

Displays the payee name, if applicable.

Issuance Amount

Displays the amount of the issuance item.

Issuance Date

Displays the date of the issuance item.

e. Filtering for Voids:

Account Number

Displays the masked account number.

Serial Number

Displays the serial number for the item.

Payee Name

Displays the payee name, if applicable.

Issuance Amount

Displays the amount of the issuance item.

Issuance Date

Displays the date of the issuance item.

120

Positive Pay Customer User Guide 6. If the Summary Information Only checkbox was selected, the Issue Item Status report populates with summary information as shown in the graphic below.

Account Number

Displays the masked account number.

Account Name

Displays the name of the account.

Check Status

Displays the status of the issued items.

Total Items

Displays the total amount of items with a particular check status for a specific account. Displays the total dollar amount of all items in the row.

Total Dollar Amount Grand Total

Displays the grand total dollar amount of all items displayed in the rows above.

7. The entire Issue Item Status Report can be downloaded as a CSV file (Comma Separated Value). Click on the Download as CSV button at the bottom left of the Issue Item Status Report screen.

121

Positive Pay Customer User Guide

C. Scheduled Reports The Scheduled Reports is an Enterprise level feature in Check Positive Pay (PRO-CHEX) designed to provide information related to outstanding issue items and paid items on a frequency. Scheduled reports can be configured to be delivered to the financial institution for forward deliver to the Client and/or they can be obtained through the Client portal.

Based on the report templates configured for each account, a client user can also choose to generate interim reports. Interim reports provide the information between the last frequency the report was generated through the current date the interim report is being generated.

122

Positive Pay Customer User Guide 1. To schedule a new report, click the Generate Interim Reports button.

2. The Interim Reports window appears.

123

Positive Pay Customer User Guide 3. Select the appropriate account from the Account drop-down menu.

4. Select the desired template from the Template drop-down menu. Template options are limited to scheduled report templates configured on the selected account and will vary based on what type of reports the client and the FI have agreed upon.

5. Select desired start and end dates for interim reports. Once all fields have been selected, click the Generate Report button. If the user is generating multiple reports, the user can click the Generate Another checkbox before clicking the Generate Reports button.

124

Positive Pay Customer User Guide 6. If the user is generating more reports, a success message appears at the bottom of the Interim Reports pop-up window, and the window stays open to add information for another Interim Report. Once the information for the last Interim Report has been entered, unselect the Generate Another checkbox and click Generate Reports to continue.

7. The Interim Reports pop-up screen automatically closes, and the Scheduled Reports screen displays. The Interim Reports requested by the user appear on the Scheduled Reports list.

NOTE: ■ Scheduled reports are generated within the configured report period, even when an account has no activity for the report period. In these cases, the system will produce a blank report.

125

Positive Pay Customer User Guide

D. Reconciliation Reports and Reconciliation Periods NOTE: ■ The Reconcile Accounts user privilege must be enabled. ■ The View Reconciliation Reports user privilege must be enabled.

Check Positive Pay (PRO-CHEX) provides the Active Reconcilement function, an Enterprise feature, designed for a user to compare the actions taken in PRO-CHEX against a company’s internal accounting system and bank account/statement. Reconciling accounts is a standard and good business practice. It is required to ensure company accounting records and bank account activity align and which issued checks have been paid and which remain outstanding. Since PRO-CHEX is the system of record for housing issued items, performing exception identification, and accepting pay/return decisions from the company, PRO-CHEX records should align with the company’s internal accounting records and the account activity shown in online banking or bank statements. For more information about the Active Reconciliation feature and the functions available to client users (if enabled), please refer to the Active Reconciliation Client User Guide. The client user can access Reconciliation reports or view past and present Reconciliation Period activity.

1. Reconciliation Reports a. Within the Check Positive Pay (PRO-CHEX) Module, click Reports > Reconciliation.

126

Positive Pay Customer User Guide b. The Reconciliation Reports page displays.

c. To filter the date range of the reports shown, click on the Date Range dropdown.

127

Positive Pay Customer User Guide d. To narrow the search results, click Filters and a window containing additional search criteria appears. The Reconciliation Reports list can be filtered by Account by entering the first few characters of the account number or account name to activate the SmartSearch filter.

e. The results can be further filtered by selecting a Report Status from the Report Status drop-down menu.

Report Status

Generated

This means that the report was created successfully and that it contains data based on the chosen report template.

Downloaded

Downloaded means that the report has been downloaded by a user.

Failed

Failed means that the report did not generate properly.

Empty

Empty means that the report ran, but there was no data to pull into the report for the given time period.

Once search criteria are selected, click Apply to narrow your search results.

g. Reconciliation Report items are displayed in pages of 25 items. If the report contains more than 25 items, the results are displayed on multiple pages. Use the navigation buttons at the top of the report results to view all results.

128

Positive Pay Customer User Guide

Report Name

The name of the report file.

Report Status Refer to paragraph d. within this section for Report Status definitions. Request Type

Download Report Button

The Request Type indicates whether the report was automatically generated by the system as part of the schedule setup for the report to run on. Click to download a copy of the Report in the designated format.

h. Click the arrow (>) button next to the Report name to view more detail on each Reconciliation Report. The information shown in this drop-down is an audit history of all the activity that has occurred on the Reconciliation Report.

Generated Date

Date the report was generated.

Downloaded Date

Date the report was downloaded.

Requested Date

Date and Time report was requested.

Requested By User or system who requested the report.

129

Positive Pay Customer User Guide 2. Viewing Reconciliation Periods: a. Within the Check Positive Pay (PRO-CHEX) Module, click View > Reconciliation Periods.

b. The Reconciliation Report Account Page displays a list of the accounts that have been provisioned with Account Reconciliation. The user can search by account number or name if a long list of accounts is displayed. Click the Select button on the appropriate account to proceed.

c. From the Reconciliation Report page for the specific account, the user can select to view any closed or active reconciliation period displayed in the list. Click Change Account to return to the list of Accounts or click the Select button to choose a reconciliation period.

130

Positive Pay Customer User Guide d. The Reconciliation statement for the chosen period displays. An example of the screen view is provided below. Depending on the type of reconciliation the account is set for, the user may see tabs at the top of the screen to view Check reconciliation, Deposit reconciliation and/or Statement reconciliation. For more information about the Active Reconciliation function, please refer to the Active Reconciliation Client User Guide.

131

Positive Pay Customer User Guide

X. PAYEE POSITIVE PAY TIPS & BEST PRACTICES For client users to have the best user experience possible, we have outlined some best practices to help make the onboarding process more efficient.

A. Payee Name Comparison: “Scoring” Check Positive Pay (PRO-CHEX) payee name scoring can handle a variety of check styles, fonts, and even hand-written names on a payee line. However, scoring does not indicate with 100% certainty whether the payee name on a check matches the payee name provided with the issue item. The technology scores on the likelihood of a match and fails or passes an item based on the scoring threshold set. The system supports a range of 0-1000. The lower the threshold is set, the more likely fraudulent items will pass. The higher the threshold is set, the less likely they are to pass, but the flipside is items where there is an exact match could trigger unnecessary exceptions. Check Positive Pay (PRO-CHEX) default threshold is set at 800. This is a system default each financial institution can have raised or lowered based on their risk tolerance. In addition to establishing a global scoring threshold, FIs can customize the default on an account-by-account basis. Each institution should consider incorporating language into their client agreements to explain that payee comparison is a scoring methodology that can be impacted by a variety of factors and therefore, as their financial institution, you make no representations or warranties that the technology is going to score items correctly each time. While Check Positive Pay (PRO-CHEX) does allow FI users to pre-scrub exceptions and override false exceptions after visually inspecting the check, FIs can help their clients reduce the number of false exceptions by recommending they use the best possible check design and formats as outlined in the best practices below.

132

Positive Pay Customer User Guide

B. Ideal Check Formatting Customers will find the most success following these suggestions in their check designs and format. ●

●

Paper weight should be 24” MICRBond (to ensure better image quality when physically captured with reader). Use check stock with no backgrounds or lighter colored backgrounds and no logos or marks in the payee field. Any background patterns, images or watermarks on the check stock that are within the area of the data to be recognized can interfere with recognition results. [Please refer to Figures 1.1 and 1.2 at the end of this subsection for good and bad examples]

●

Check stock should be consistent for each account.

●

Minimum 200 dpi resolution is required; 200 to 300 dpi is the recommended range.

●

Printing with an ink jet or laser printer produces best results.

●

Handwritten Items: Payee positive pay’s effectiveness may be reduced with handwritten checks due to observed variations in handwritten numbers and letters. Check printing should be consistent with the payee information in the same location per account. Checks should be fixed width (fixed spacing) 10-point font or higher for the Payee Block and Amount. Font size 12 or 14 will produce best results. [Please refer to Figures 1.3 and 1.4 at the end of this subsection for good and bad examples] Sans Serif fonts are preferred (no bold). For example, Courier New, Courier, Lucida Console, Terminal, Letter Gothic are all acceptable fonts. Courier New is preferable. [Please refer to Figures 1.3 and 1.4 at the end of this subsection for good and bad examples] “PAY TO THE ORDER OF” should not be italicized or underlined and must be printed horizontally at the same level to the left of the payee name. Payee Name should be printed to the right of “PAY TO THE ORDER OF” starting from the position of the keyboard “PAY” or lower. [Please refer to Figures 1.5 and 1.6 at the end of this subsection for good and bad examples] Payee name should be a maximum of 100 characters, left aligned and single line spacing should be used. [Please refer to Figures 1.7 and 1.8 at the end of this subsection for good and bad examples] Up to four payee names are permitted. [For more information about multiple payee handling, please refer to Subsection D, Multiple Payee Handling, within this section] 133

Positive Pay Customer User Guide ●

●

The payee name and amount should be surrounded by an area of white space with a minimum of 2 empty lines. This minimizes the interference of any irrelevant printed information on the item and allows for some shifting/offset of the data’s location during the scanning process. [Please refer to Figures 1.7 and 1.8 at the end of this subsection for good and bad examples] Payee name should not be italicized, bolded or underlined and words should be separated by one (1) single blank space. [Please refer to Figures 1.7 and 1.8 at the end of this subsection for good and bad examples] Payee Name should be printed only once on the check, within the Payee Block. Do not split the Payee Block into two non-adjacent parts (the Name and the Address). [Please refer to Figures 1.7 and 1.8 at the end of this subsection for good and bad examples] Uppercase characters produce the best results. [Please refer to Figures 1.7 and 1.8 at the end of this subsection for good and bad examples]

134

Positive Pay Customer User Guide Figure 1.1 Good Example: A check stock that is light colored, with no logos in the payee field.

Figure 1.2 Bad Example: A check with a background that is too dark and may cause issues when scanning.

135

Positive Pay Customer User Guide Figure 1.3 Good Example: Payee Block and Amount use fixed width spacing, 12-14 font size sans serif fonts.

Figure 1.4 Bad Example: Serif font, non-fixed-width spacing, and a 12-14 bolded font font size is used.

136

Positive Pay Customer User Guide Figure 1.5 Good Example: “Pay to the Order Of” is horizontally printed at the same level as the payee name. The font is not italicized or underlined.

Figure 1.6 Bad Example: “To The Order Of” appears instead of “Pay To The Order Of” and is not horizontally printed next to the Payee Block. The font is italicized.

137

Positive Pay Customer User Guide Figure 1.7 Good Example: Payee name and amount are surrounded by an area of white space. Payee name is left aligned and single spaced. Payee name is printed in uppercase letters, and the payee name is not italicized, bolded or underlined. The payee name is not split into non-adjacent parts and is printed only once on the check.

Figure 1.8 Bad Example: Payee name is not surrounded by white space. The font is bolded and upper and lowercase letters are used in the payee block. Payee name is in a separate area than the payee address and is not left aligned.

138

Positive Pay Customer User Guide

C. Other Common Check Formatting Problems Following are examples of check formats causing processing errors and issues with payee scoring. Bad Scans & Poor Image Quality Poor image quality can interfere with scans. It appears the check paper was inserted into the printer improperly, causing the payee name information to print in a blurred/slanted condition. This caused issues with scanning. [Payor name, Payee name, and bank name are partially removed for confidentiality]

Poor Image Quality. Payee area only states “To the Order of” and is not horizontally printed. The boxes around date and amount might cause issues with scanning.

139

Positive Pay Customer User Guide Poor image quality. Check fields are in non-serif fonts. Boxes around check fields may cause issues with interpreting fields on the check. Pay To The Order Of is not horizontally printed.

140

Positive Pay Customer User Guide

D. Custom Payee Boxing In certain circumstances, an FI may need to designate payee analysis focus on a specific portion of a client’s check stock. To assist with this, we have introduced a tool allowing Alkami (formerly ACH Alert) personnel to draw a custom box for those accounts. For more information about the Custom Payee Boxing functionality, please contact your Financial Institution.

When the custom box is saved, future payee analysis will focus only on that portion of the client’s check stock, and the payee scoring will be targeted to that area. This functionality cannot be utilized on an account using multi-line payee handling or custom DPI settings.

141

Positive Pay Customer User Guide

E. Multiple Payee Handling Check Positive Pay (PRO-CHEX) can support customers with multiple payee names on issued items. PRO-CHEX can score multiple names on a check against information provided in the issuance file. Multiple payees can be listed on a single line or on two separate lines on the check. Examples of correct formatting are shown below. NOTE: ■ Multi-Line Payee Handling cannot be utilized on accounts that have a custom payee box enabled.

142

Positive Pay Customer User Guide

143

Positive Pay Customer User Guide 1. This section is designed to explain how to handle multiple payee names appearing on two separate lines of the check. a. Multiple Payee Handling setup in Issue Templates. i.

The Multi-Line Payee Name Separator field is included in the Issue Template creation screen allowing for recognition and recording of multiple payees on a check.

ii. This feature allows the FI or Client user to enter a character into the field to separate Multiple Payee Names on separate lines of an issued item. Currently, the system restricts the allowed characters to the following: ; | , _ / . Using a separator character appearing elsewhere in the payee name can cause issues. Examples of scenarios where problems might arise are listed below. Within a Comma Separated file (.csv), different data fields are separated by a comma.A comma cannot be used in the data field itself, or the .csv will read the comma as a separator before the next field. Therefore, listing two payees for an item in this way: “Elain Archeron,Nesta Archeron” will cause issues reading the .csv file. In this scenario, the user should select a multi-line payee name separator character that will not cause an issue, such as a semicolon. “Elain Archeron;Nesta Archeron” in the Payee Name field of the .csv file will process correctly.

144

Positive Pay Customer User Guide If the user selects a separator character that would ever appear in a payee name field, such as a dash (-), the system would then separate the data before and after the character as separate payees. For instance, if the user has selected a dash (-) as the Multi-Line Payee Name Separator, and a common payee used is “In-and-Out Burger”, the system will flag this as having multiple payees (In, and, Out, Burger). In this case, the user should select a multi-line payee name separator that will not cause such issues, such as a pipe (|) or a semicolon for cases of multiple payee names. b. Multiple Payee Handling in Manual Issue Entry. i.

When the Client user performs Manual Issue Entry, the Payee Name field supports up to four Payees. When in the Manual Issue Entry screen, the names should be listed as shown below. An Enter (carriage return) must be used to input the second, third, or fourth payee on separate lines in the field for it to be distinguished as different payees. Example of Manual Issue Entry and corresponding issue item below:

145

Positive Pay Customer User Guide ii. If the multiple payees are listed on a single line of the check, putting the names on separate lines is not applicable. Example of Manual Issue Entry and corresponding issue item below:

iii. The Payee Name field currently supports 100 characters in total. This character limit includes the carriage returns separating multiple payees. The 100-character limit is for the entire field and not per payee. Manual Issue Entry is covered in depth in the Check Positive Pay (PRO-CHEX) Client User Guide. Please refer to this document for more general information about Manual Issue Entry. c. Multiple Payee Handling when Loading Issue Files. i.

When the Client user loads issue files to the system, the loaded file is processed with an Issue Template set up within Check Positive Pay (PRO-CHEX). The Issue Template allows for selection of a Multi-Line Payee Separator, a character chosen to separate the names of multiple payees in the issue file.

146

Positive Pay Customer User Guide ii. If multiple payees are listed on a single line of a check, no action needs to be taken. iii. If multiple payees are listed on two or more separate lines on a check, the multiple payee separator character (which should match the one designated in the template), must be used between each name. Example of an issue file and corresponding issue item below:

Loading Issue Files is covered in depth in the Check Positive Pay (PRO-CHEX) Client User Guide. Please refer to this document for more general information about Loading Issue Files.

147

Positive Pay Customer User Guide d. Things to Remember: Multiple Payee Name Separators. To recap the information covered above, remember: i.

The Multi-Line Payee Name Separator character designated in the Issue Template must match what is used in the Issue Files loaded to the system. The system will recognize that character and when encountered in an Issue File, the system will record the data appearing after that character as a separate payee.

ii. The allowable characters are: ; | , - _ / . iii. Some characters may cause problems when used as a separator. Do not use a character as a separator if that character will ever be present in a Payee Name, or is a character used in a specific file type (i.e., Comma Separated files). iv. Payee Name Separators are only necessary when payee names are listed on two or more separate lines of a check.

F. Visually Inspect Non-Exceptions using Payee Review Feature Payee analysis is not a perfect technology. The Review Payee functionality in the Client portal has been introduced to allow users to visually inspect presented items to ensure fraudulent transactions that may not have triggered any exceptions are identified. For more information on the Payee Review feature, please refer to the Section VI, Managing Check Presentment.

148

Positive Pay Customer User Guide

XI. PREFERENCES A. Preferences 1. From within the Dashboard or Check Positive Pay (PRO-CHEX) Module, click User’s Name > Preferences.

2. The Preferences page appears.

3. Default Module gives the User the ability to choose the default landing page.

149

Positive Pay Customer User Guide 4. Default Check Positive Pay (PRO-CHEX) Page allows the user to select the default landing page within PRO-CHEX.

5. Default Dashboard Page allows the user to select the default landing page within the Client Dashboard.

6. Once any preferences have been selected, click Save to update the settings.

150

Positive Pay Customer User Guide

APPENDIX A – CHECK POSITIVE PAY (PRO-CHEX) MESSAGE ALERTS This Appendix illustrates the different types of alerts users may receive while using Check Positive Pay (PRO-CHEX). Please note the following: ●

●

If a cell phone number is entered in the Cell Phone Number field in the user’s setup (FI or Client user), the user may receive SMS/Text Alerts if the user is set up for Check Positive Pay (PRO-CHEX) and/or ACH Credit Origination Protection (C.O.P.S.). Service Level Alerts are not included in this list, since they apply only to Check Positive Pay (PRO-CHEX), ACH Positive Pay (PRO-TECH, PRO-TECH CR), and EDI Translation (EDI TransAlert). If a user is set to receive Service Level Alerts, the user will receive a service level alert for all the client’s accounts, which may include accounts a user is not assigned to work with. Alkami (formerly ACH Alert) uses a 10-digit long code (10DLC) number for generating SMS/Text Alerts. The long code number, which will appear in any SMS/Text Alerts received, is 12029808159. This phone number may appear formatted as a ten-digit phone number (1-202-980-8159).

151

Positive Pay Customer User Guide

152

Positive Pay Customer User Guide

153

Positive Pay Customer User Guide

154

Positive Pay Customer User Guide

155

Positive Pay Customer User Guide

156

Positive Pay Customer User Guide

157

Positive Pay Customer User Guide

158

Positive Pay Customer User Guide

159

Positive Pay Customer User Guide

160

Positive Pay Customer User Guide

161

Positive Pay Customer User Guide

162

Positive Pay Customer User Guide

APPENDIX B – QUICKBOOKS ISSUE FILE EXPORT This guide is meant to aid client users in exporting check file data from QuickBooks. There are two methods of exporting the check file data from QuickBooks. Both options are outlined below. These examples are from the QuickBooks desktop version. The first option is using a Quick Report from the checking account. The second method is using the Check Detail Report, which requires more actions for the user to take.

A. Exporting from QuickBooks Account Register 1. From QuickBooks, use Ctrl+A to open the account listing from any screen. 2. Click once to select the appropriate account to pull the Check File.

3. Once the Check Report has been populated, use Ctrl+Q to create a Quick Report from the selected account.

163

Positive Pay Customer User Guide a. Select the Date drop-down menu to choose a specific date or date range for the transactions to display in the report. Based on the range that is selected, check items that can be displayed can be for a specific date, a specific quarter, month or even a date range that the user selects.

b. Click Customize Report button. The Modify Report screen displays. By using the Customize Report feature, the user will be able to manage the amount of information contained in the report prior to exporting the report to Excel. The user can select and/or remove items that are not needed in the report.

164

Positive Pay Customer User Guide c. Click the Filters tab. In the listing of Filters, select Transaction Type. This will allow the user to remove the transaction types that are needed for the check file.

165

Positive Pay Customer User Guide d. From the Transaction Type drop-down menu, select Multiple Transaction Types. This will allow the user to select multiple check types within QuickBooks. For this example, we have used Check and Bill Payment. Click OK to confirm the transaction types.

166

Positive Pay Customer User Guide e. From the Modify Report screen, select OK to proceed. The requested changes to the report will display.

From the QuickBooks toolbar, click the Excel drop-down menu and select Create New Worksheet.

167

Positive Pay Customer User Guide g. The Send Report to Excel pop-up window appears. Select Create New Worksheet > In New Worksheet and click the Export button to continue.

h. Excel will open and the Excel file will populate. Within the Excel file, remove all rows that are blank under the column header “Num”. By removing these items from the check file, items that do not have a serial number assigned to them will not be uploaded into the Check Positive Pay (PRO-CHEX) System.

168

Positive Pay Customer User Guide i.

Remove the “Balance” column. This information is not needed for the Check File upload to Check Positive Pay (PRO-CHEX).

169

Positive Pay Customer User Guide j.

Select File > Save As and save the workbook. i.

Choose the File Name.

ii. Choose the Format. The file format for this file must be Comma Separated, Excel 97-2003 Workbook or Excel Workbook.

k. Click Save and close the workbook.

170

Positive Pay Customer User Guide 4. Sign into the Alkami (formerly ACH Alert) Client Portal.

5. Select the Check Positive Pay (PRO-CHEX) Service Module.

6. From the Check Positive Pay (PRO-CHEX) module, select Manage > Issue Templates to create an issue template. This will allow the user to map the exported information from QuickBooks so that the file is read correctly when uploaded to PRO-CHEX. The user will also be able to save this template for use in future issuance file uploads.

171

Positive Pay Customer User Guide 7. The Issuance File Templates page displays. This page lists the saved Issue File Templates available for the Client to use and allows the user to create a new template for use. Select Create New Template.

8. The Create New Template screen appears.

172

Positive Pay Customer User Guide 9. Creating the Issuance Template to the Exported Information from QuickBooks: a. Template Name Create a name for the template using information that will allow the user to easily identify this template in the future. For this example, the template name is QuickBooks Export Type 1.

b. File Type Select the appropriate file type based on the file type used to save the Excel document. For this example, the file type will be Excel Workbook.

c. Template Status The Template Status drop-down menu defaults to Active status. Leave the status as Active.

173

Positive Pay Customer User Guide d. Number of Header Rows Refer to the Excel file that was created. A Header Row will be any row above the check information that does not contain actual check information for presentment in the Check Positive Pay (PRO-CHEX) Module. For this example, the header rows have been highlighted yellow. The number of header rows should be 2 in the template.

e. Number of Footer Rows Refer to the Excel file that was created. A Footer Row will be any row below the check information that does not contain actual check information for presentment in the Check Positive Pay (PRO-CHEX) Module. For this example, the footer rows have been highlighted yellow. The number of footer rows should be 2 in the template.

174

Positive Pay Customer User Guide f.

Template Level The default value of Client will be presented and will not allow a different selection to be made.

g. Multi-Line Payee Name Separator. This feature is not currently available for items exported out of QuickBooks.

h. File Mapping i.

Serial Number 1. Enter the column number that the check number/serial number is presented in the Excel document. For this example, the Num column is highlighted yellow. The column number for Num should be 9 in the template.

175

Positive Pay Customer User Guide ii. Amount 1. Enter the column number that the amount is presented in the Excel document. Select fractional dollars if the dollars and cents are separated by a decimal. If the dollars and cents are not separated by a decimal, select whole numbers of cents. For this example, the Amount column is highlighted yellow. The column number for Amount should be 17 in the template.

iii. Status 1. Remove the checkmark from this box. The export from QuickBooks does not contain this information. The user can add this information manually if they choose to. If the column is added, the box will need to remain checked and the column number will need to be entered for the Check Positive Pay (PRO-CHEX) system to accurately read it. For this example, the Status field is not being used.

If the Status box is unchecked, the user should be aware that any issuance loaded with negative amounts or a $0 amount will be treated as Void.

176

Positive Pay Customer User Guide iv. Account Number 1. The exported information from QuickBooks does not include an account number. Leave the box unchecked and the File Column field blank. For this example, the Account Number field is left blank.

v. Issuance Date 1. The Issuance Date is located in the “Date” column in the Excel document. The user must check the box and enter the column number for the system to read the issuance date correctly. For this example, the Date column is highlighted yellow. The column number for Issuance Date should be 7 in the template.

177

Positive Pay Customer User Guide vi. Payee Name 1. If the Client is set up to use Payee Positive Pay, the user will need to select the box and enter the column number for the column labeled “Name” in the Excel report. For this example, the Name column is highlighted yellow. The column number for Payee Name should be 11 in the template.

vii. Additional Issue Fields 1. Additional issue fields are available for client use to allow clients to record any additional information into an issuance file to be used for historical or reconciliation purposes. In the example below, the client has additional issue fields configured: Company Name, Invoice, and Address. For the purposes of Export from QuickBooks, the user should disregard these fields as they do not apply to the export process.

178

Positive Pay Customer User Guide viii. Click the Save button. A success message appears, and the user will be returned to the Issuance Templates page. The new issue template will display in the list of templates.

B. Exporting from QuickBook Reports 1. From QuickBooks, select Reports on the Tool Bar.

179

Positive Pay Customer User Guide 2. Select Banking from the drop-down menu and click Check Detail from the Banking sub-menu.

3. The Check Detail Report will display.

180

Positive Pay Customer User Guide a. Select the Date drop-down menu to choose a specific date or date range for the check items to display in the report. Based on the range that is selected, check items that can be displayed can be for a specific date, a specific quarter, month or even a date range that the user selects.

b. Click Customize Report button. The Modify Report screen displays.

181

Positive Pay Customer User Guide c. Select the Filters tab.

d. In the listing of Filters, select Account from the drop-down menu. i.

Select All Bank Accounts to pull all checks issued from all bank accounts for which the user has QuickBooks access.

182

Positive Pay Customer User Guide ii. Select a single Bank Account to pull checks issued from a single bank account.

iii. Under Include Split Detail?, click the button next to “No”.

183

Positive Pay Customer User Guide iv. Under Current Filter Choices, select Detail Level, and then click the Remove Selected Filter button.

v. Select Transaction Type from the Filter menu. Select Multiple Transaction Types from the Transaction Types submenu.

184

Positive Pay Customer User Guide vi. From the Select Transaction Type drop-down menu, select the check transactions to appear in the Check File. For this example, Check and Bill Payment options were selected. Click OK to confirm the transaction types.

e. From the Modify Report screen, select OK to proceed. The requested changes to the report will display. From the QuickBooks toolbar, click the Excel drop-down menu and select Create New Worksheet.

185

Positive Pay Customer User Guide f.

The Send Report to Excel pop-up window appears. Select Create New Worksheet > In New Worksheet and click the Export button to continue.

g. Excel will open and the Excel file will populate. Within the Excel file, remove all rows that are blank under the column headers “Type” and/or “Num”.

186

Positive Pay Customer User Guide h. Remove all blank columns.

187

Positive Pay Customer User Guide i.

Select File > Save As and save the workbook. i.

Choose the File Name.

ii. Choose the Format. The file format for this file must be Comma Separated, Excel 97-2003 Workbook or Excel Workbook.

After saving, close the Excel workbook.

188

Positive Pay Customer User Guide 4. Sign into the Alkami (formerly ACH Alert) Client Portal.

5. Select the Check Positive Pay (PRO-CHEX) Service Module.

189

8. The Create New Template screen appears.

190

b. File Type Select the appropriate file type based on the file type used to save the Excel document. For this example, the file type will be Excel Workbook.

c. Template Status The Template Status drop-down menu defaults to Active status. Leave the status as Active.

191

192

Positive Pay Customer User Guide f.

Template Level The default value of Client will be presented and will not allow a different selection to be made.

g. Multi-Line Payee Name Separator. This feature is not currently available for items exported out of QuickBooks.

h. File Mapping i.

193

iii. Status 1. Remove the checkmark from this box. The export from QuickBooks does not contain this information. The user can add this information manually if they choose to. If the column is added, the box will need to remain checked and the column number will need to be entered for the Check Positive Pay (PROCHEX) system to accurately read it. For this example, the Status field is not being used.

If the Status box is unchecked, the user should be aware that any issuance loaded with negative amounts or a $0 amount will be treated as Void. 194

195

196

Positive Pay Customer User Guide vii. Additional Issue Fields 1. Additional issue fields are available for client use to allow clients to record any additional information into an issuance file to be used for historical or reconciliation purposes. In the example below, the client has additional issue fields configured: Company Name, Invoice, and Address. For the purposes of Export from QuickBooks, the user should disregard these fields as they do not apply to the export process.

197

Positive Pay Customer User Guide i.

Click the Save button. A success message appears, and the user will be returned to the Issuance Templates page. The new issue template will display in the list of templates.

198

Positive Pay Customer User Guide

C. Loading the QuickBooks Issue File 1. From the Check Positive Pay (PRO-CHEX) Module, select Perform > Issue File Load.

2. The Load Check Issuance File page appears.

3. Select the Template drop-down box to select from a list of existing templates. Select the appropriate template. For this example, QuickBooks Export Type 2 will be used.

199

Positive Pay Customer User Guide 4. The template selected was created without the Account field enabled. A drop-down box will display so that the appropriate account can be selected. Select from the list of accounts. For this example, ABC Heating – xxxx1555 will be used.

5. The file upload interface will appear. Click the Browse button to select the appropriate file or drag and drop the file into the box indicated on the interface screen.

200

Positive Pay Customer User Guide 6. Once the file is selected, it will be displayed in the upload interface.

7. Click the Upload button to proceed. Once the file has loaded successfully, the Issuance File Status page will display and will be eligible for editing in the Issue Warehouse.

201

Positive Pay Customer User Guide

APPENDIX D – CLIENT USER TRAINING VIDEOS Client users can access the information contained in the Check Positive Pay (PRO-CHEX) Client User Guide, presented in training video form, by navigating to the following link. FPHQ Client Training Videos Main Page (Clicking on the PRO-CHEX button at the top of the screen will filter only PRO-CHEX videos):

202