Fraud Protection

ACH Filter: Allows businesses to specify which ACH transactions are permitted by setting predefined criteria, such as approved vendors or payment amounts. Any transaction that does not meet the criteria is flagged or blocked. This is useful for businesses that need to allow specific ACH transactions while preventing unauthorized ones.

ACH Block: It is a stricter control that completely prevents all ACH transactions from being processed on an account. It is typically used for accounts that should not have any ACH activity, such as savings or payroll accounts, to prevent unauthorized withdrawals or fraud.

Whether Reverse Positive Pay is better than Check or Payee Positive Pay depends on a business’s fraud prevention needs and operational preferences.

• Reverse Positive Pay requires the business to review checks only when they are presented for payment. The bank does not automatically verify issued checks against a provided list but instead alerts the business about potential discrepancies, leaving the responsibility of reviewing transactions to the account holder.

• Check Positive Pay is a more proactive approach where businesses send the bank a list of issued checks, including check numbers and amounts. The bank then compares incoming checks against this list and flags discrepancies before processing.

• Payee Positive Pay adds an extra layer of security by verifying not only the check number and amount but also the payee name, reducing the risk of payee name alterations.

Fraud mitigation tools are essential for small businesses, just as they are for larger companies. Small businesses are often prime targets for fraud because they may have fewer security measures in place compared to larger organizations. Fraudulent activities such as check fraud, ACH fraud, credit card fraud, and phishing attacks can lead to significant financial losses and reputational damage.

By implementing CUTX's fraud mitigation tools—such as ACH filters and blocks, Positive Pay, multi-factor authentication, and transaction monitoring—you can protect your business from unauthorized transactions and cyber threats. These tools help detect and prevent suspicious activity in real time, reducing financial risk and ensuring secure operations.

If your business fails to catch an unauthorized ACH transaction, the consequences can be serious, including financial loss, operational disruption, and potential legal issues. Unlike credit card fraud, where liability protections are stronger, businesses have a limited window—typically two business days—to report unauthorized ACH debits under NACHA (National Automated Clearing House Association) rules. If you miss this deadline, recovering the lost funds can be difficult or even impossible.

Without CUTX's fraud mitigation tools like ACH blocks, filters, or Positive Pay, unauthorized transactions may go unnoticed, leading to ongoing fraud exposure.