What product does TM offer to help clients minimize risk and fraud relating to checks?

The correct answer, which is positive pay, is an essential tool that financial institutions use to help clients combat check fraud and minimize risk. This service works by requiring businesses to submit a list of checks they have issued to the bank. When a check is presented for payment, the bank compares it against this list to verify that the check is legitimate before it is processed. If a check does not match the details on the issued check list, the bank will flag it, allowing the client to approve or decline payment.

This proactive measure helps to prevent unauthorized or altered checks from being cashed, significantly reducing the risk of fraud. Positive pay enhances security for clients who regularly issue checks, ensuring greater control over their financial transactions.

While other products like electronic fund transfer services can help streamline payments and avoid checks altogether, they do not specifically target the fraud risks associated with traditional checks. Check verification services also assist by confirming the validity of a check at the point of sale but do not offer the same level of preventive measure that positive pay provides. Fraud detection algorithms focus on identifying and flagging suspicious behavior based on patterns, but they do not directly address individual check verification before payment is authorized.