Q: Why should property management companies, community associations and landlords be concerned about protection of bank balances?
A: Deposits of real estate owners and managers follow a predictable pattern attractive to thieves – rent deposits or maintenance fees are deposited at the beginning of the month, thus creating large balances.
Q: How can property managements and associations protect their balances?
A: In addition to the security measures that most banks offer with business checking, Positive Pay is a fraud detection tool that represents an extra layer of security.
Q: What is Positive Pay?
A: A Positive Pay user transmits account number, check number and dollar of each check to his or her bank, either through an online interface or transmittal of a file. Checks presented at the bank that do not match are not paid.
Q: What does Positive Pay cost?
A: Positive Pay usually has a cost associated. The fee is a tradeoff in return for extra protection. Check with your banker.
Thanks to JJ Majeski and Tom Iversen of Regions Bank for their help and contribution to this post. You can reach JJ at 407-294-3336.