What provides the insurance company with the ability to electronically send the bank daily listings of issued checks?

Question

Options

• Awire transfers
• Bpay pal
• CPositive pay
• Dstructuring transfers

• A
  8% (2)
• B
  4% (1)
• C
  85% (22)
• D
  4% (1)

Explanation

Positive Pay (C) is a fraud-prevention service where an insurance company or other account holder electronically transmits a daily file of issued check details (check number, amount, payee) to their bank, allowing the bank to match and verify checks before clearing them - any discrepancy flags the item for review.

Why the distractors are wrong:

• Wire transfers (A) move funds electronically between accounts; they don't involve check verification or issuance lists.
• PayPal (B) is a consumer/business payment platform, not a banking control mechanism for check reconciliation.
• Structuring transfers (D) refers to illegally breaking up transactions to avoid reporting thresholds - it's a crime, not a legitimate banking service.

Memory tip: Think of "Positive Pay" as the bank acting as a positive ID bouncer - it only lets a check through if it positively matches what the account holder said it issued.

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