Which statement correctly describes positive pay for ACH?

Which statement correctly describes positive pay for ACH?

• A. The bank verifies ACH payments against a list of legitimate and expected payments provided by the account holder.
• B. It blocks all ACH debits from the account.
• C. It notifies the account holder after every ACH payment is processed.
• D. It filters outgoing ACH payments based on a set of criteria.

Answer: (A)

Positive pay for ACH is a fraud-prevention measure where the bank checks each incoming ACH debit against a pre-approved list provided by the account holder. If the debit matches an item on the list, it’s posted; if it doesn’t, the item becomes an exception and may be blocked or require customer review. This is why stating that the bank verifies ACH payments against a list of legitimate and expected payments provided by the account holder is the best description. The other options describe actions that aren’t how positive pay works: it doesn’t block all debits by default, it isn’t defined by notifying after every payment, and it isn’t about filtering outgoing payments.

Positive pay for ACH is a fraud-prevention measure where the bank checks each incoming ACH debit against a pre-approved list provided by the account holder. If the debit matches an item on the list, it’s posted; if it doesn’t, the item becomes an exception and may be blocked or require customer review. This is why stating that the bank verifies ACH payments against a list of legitimate and expected payments provided by the account holder is the best description. The other options describe actions that aren’t how positive pay works: it doesn’t block all debits by default, it isn’t defined by notifying after every payment, and it isn’t about filtering outgoing payments.