Preparing for Payee Positive Pay
Implementation Headaches Can Be Eased by Knowing Your Client
Written by Donovan Perkins, AP Technology
Payee verification is quickly being adopted by large financial institutions around the country in their efforts to more effectively reduce check fraud. In addition to the check data verified by standard positive pay, such as date, amount, and check number, payee verification allows a bank to also match the payee information. Payee verification is the key defense against check fraud resulting from alteration of a check's payee information. However, implementing payee verification also presents challenges for both the bank and the corporation. Bank professionals should know their customer's level of knowledge of positive pay technology and their specific concerns in order to overcome technology adoption challenges.
Banks who bring customers into the world of payee positive pay should categorize their customers so they can effectively meet their needs during the implementation process.
The three basic categories:
Expert:
Experts use a custom-designed system. Usually they have spent a large amount of money on this system and are very proud of the system they have in place. Examples include custom-designed systems for AS 400 or specific accounting package add-ons.
Amateur:
Existing positive pay customers of yours or from another bank. They did their research but were not willing to spend a lot of money implementing their system. Their system is usually efficient and effective, although not custom designed. Examples include report writers such as Crystal, macros in Excel, or possibly an out-of-the-box software specifically formatted for a bank.
Beginner:
New positive pay customer who is extracting data for the first time.
Using these categories will allow the bank professional to make basic assumptions that help them to organize their customer's technology choices when implementing payee positive pay.
Expert
The Challenge
Although experts, these customers will face the most challenges when implementing payee positive pay. Custom-designed programs leave little room for changes to the output file. Experts spend a significant amount of money implementing positive pay, so changing the output file will likely require going through an approval process again. Chances are, experts will challenge the need to add payee verification to their file. They know that bringing a custom programmer back in could cost thousands of dollars.
The Solution
Bank professionals will need to effectively meet the objections that experts will have to payee verification. Easing their headache includes providing detailed documentation about the changes to their file format as well as a specific time frame for conversion to the payee positive pay format. Approval is easier when the correct documentation and timeline is provided. Suggest that the expert implement a strategy that allows for manipulation of the file in the future.
Amateur
The Challenge
Amateurs are easier to convince of the need for payee positive pay. They carefully decided on their solution, and although they did not select custom programming, they selected a solution that was easier and faster for implementation purposes. Amateurs also need to go through approval, but their changes will likely prove more cost effective. Amateurs take their time implementing new solutions and should be treated carefully. Watch out for solutions that do not capture payee information.
The Solution
Help the amateur to understand the changes needed to implement payee positive pay. The amateur's solution is easier to manipulate than the expert's because it is less expensive and usually more flexible. The solution the amateur originally selected could easily be manipulated to capture payee information.
Beginner
The Challenge
Beginners are the most difficult to convince of the need for positive pay. Beginners can be classified this way because of their inexperience in dealing with positive pay in general. The beginner is willing to listen to multiple solutions and is naive to the cost and time of implementation.
The Solution
The beginner will be more accepting of payee verification because of their lack of knowledge. It is important to assist them in the selection of a solution. The solution you help the user select should be scaleable and flexible to meet the demands of the business and the growing demands of the financial institution. Look to your bank's product group for solution suggestions, learn that solution, and be able to discuss it effectively.
Knowing your customer and the issues they face can make the difference in succeeding with payee positive pay adoption. And the headaches eased during technology selection and implementation will help establish a long-lasting relationship.
SecurePay positive pay software from AP Technology provides for payee positive pay. SecurePay provides the fastest and easiest way to implement positive pay file creation and transmission per bank specifications.
