ARP Payee Validation Service tour

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Wells Fargo TM Implementation & Customer Education

No matter how your company handles its payments processes, the Wells Fargo Account Reconciliation Positive Pay service reduces your company’s exposure to unauthorized checks, counterfeit checks, or checks with alterations.

Payee Validation tour Commercial Electronic Office®

The Payee Validation service, which is part of Positive Pay, helps prevent fraud by adding an extra layer of protection by reviewing and validating the payee field to identify any potential alterations.

Payee Validation tour Commercial Electronic Office®

Today’s embezzlers, organized crime rings, and fraudsters are opportunistic and pose a significant threat.

Payee Validation tour Commercial Electronic Office®

Wells Fargo helps protect you against actual losses directly incurred as a result of an unauthorized alteration of the payee on a check presented for payment.

Payee Validation tour Commercial Electronic Office®

With the Payee Validation service, Wells Fargo validates that the payee name on a check matches the payee name in your check issue file. • Payee matches are paid.

• Payee mismatches are

reported to you for a pay/return decision on each mismatched item via CEO Fraud Manager.

Payee Validation tour Commercial Electronic Office®

Optical Character Recognition Software (OCR)

Name: Henry Wells Company: Alpha Co. Account: 12XXXX789 Amount: $1,000.00 Date: 10/11/20XX

Image files from banks of first deposit

Payee Validation tour Commercial Electronic Office®

Payee Validation Implementation Check Monitoring Process Wells Fargo has developed a three-week process to ensure accurate reading of payee information on your checks. • Monitor your check stock,

including printed payee name information

• Conduct an issue file review to ensure your file matches the payee name on your checks

Payee Validation tour Commercial Electronic Office®

Wells Fargo will watch your accounts in production during this three-week monitoring process. No physical check test samples are required. If we see excessive payee name rejects, we will contact you to revise your check stock, printed payee name information or issue files to reestablish compliance with the ARP Payee Validation Customer Guidelines.

Payee Validation tour Commercial Electronic Office®

When you successfully pass the three week monitoring process, you are approved for the Payee Validation service and can now order your full inventory of check stock. If issues that prevent optimal protection are uncovered in the monitoring process, we will work with you to correct any identified issues with your check stock, payee name printing, and/or check issue file within 60 days.

Payee Validation tour Commercial Electronic Office®

Customer Responsibilities If unable to pass the monitoring period, you must: • Correct any identified issues

with check stock and/or payee name printing.

• Revise issue file to meet Payee Validation input file specifications.

Payee Validation tour Commercial Electronic Office®

Check Stock Complete paper stock and design specifications are provided in the ARP Payee Validation Customer Guidelines document.

Payee Validation tour Commercial Electronic Office®

As you can see, a dark background makes it difficult to read the payee name. Since 99% of all checks are received today by Wells Fargo as image files, image clarity is of the utmost importance for the Payee Validation process.

Payee Validation tour Commercial Electronic Office®

Eliminate background patterns, images, or watermarks on the check stock within the area where the payee information is printed and use light pastel background colors.

Payee Validation tour Commercial Electronic Office®

Check printing is very important: • Arial or Century Gothic font is recommended • Use a minimum font size of 12 point • Print Payee Name in all upper case • Use black ink

Payee Validation tour Commercial Electronic Office®

Consistent placement of the payee name will ensure it is located every time by the optical recognition software. The payee name should: • Have ½” of white space on all sides • Not be handwritten

Payee Validation tour Commercial Electronic Office®

Customer Responsibilities – Issue File If unable to pass the monitoring period, you must: • Correct any identified issues with the check issue file.

Payee Validation tour Commercial Electronic Office®

Henry Wells = Henry Wells

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Avoid Payee Mismatches • Make sure the payee names in your issue file exactly match

the payee names on your physical checks.

Payee Validation tour Commercial Electronic Office®

Avoid Payee Mismatches • Payee Name Switch is allowed. Insert a comma in your issue file to

differentiate between first and last name.

Wells, Henry

• For multiple payees, include all payee names including connectors

(and, or) in a single data string with no carriage returns.

Henry Wells and Bill Fargo and…

• If other data, such as employee numbers or vendor ID’s are included

in your issue file but not on your check, the payee names must precede the other data and be separated with a tilde (~) character.

Henry Wells ~ 123XXX789 Payee Validation tour

Commercial Electronic Office®

Henry Wells Finance Department

Avoid Payee Mismatches Two options for number of payee lines validated: • Multi Line – validates all payee name data prior to the US Postal

address. Internal addresses such as Department and C/O are considered a payee and must be included in the issue file.

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Payee Validation tour Commercial Electronic Office®

Henry Wells

Avoid Payee Mismatches Two options for number of payee lines validated: • First Line – validates only the payee name data as listed in the issue

file to the check. Do not truncate lines as we review complete lines on the check.

Payee Validation tour Commercial Electronic Office®

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Tips for success • Read the Key Requirements

summary/ARP PV Customer Guidelines.

• Match your check stock and Positive Pay issue file to the specifications before beginning the monitoring process.

• Order a full supply of check stock after receiving check monitoring approval.

Payee Validation tour Commercial Electronic Office®

Add ARP Payee Validation service to your fraud-fighting arsenal!

Payee Validation tour Commercial Electronic Office®