Why Positive Pay Adoption Is Still Under 50% (And How to Change That at Your Bank)

The Positive Pay Paradox

Check fraud losses reached record levels in 2025, but positive pay adoption among small and mid-sized businesses is still below 50%.

This means that more than half of businesses writing checks have no preventive control stopping altered or counterfeit checks from clearing against their accounts, even though the risk of that has sky-rocketed.

Positive pay isn’t new, hard to implement, or even expensive. And yet adoption is still incredibly low, and the reason has less to do with whether or not a business needs it and more to do with how banks position it and roll it out. The generally accepted approach hasn’t kept pace with how businesses actually make about fraud controls.

This post walks through why positive pay adoption stays low and the specific friction points keeping businesses from signing up. We’ll also give you a roadmap for how treasury management teams can get positive pay adoption above 75% in their portfolio within 12 months.

Why Businesses Don’t Adopt It

They Don't Understand What It Actually Does

Ask a business owner or CFO what positive pay actually is, and the answer is usually some version of “a fraud protection thing the bank offers.” That’s technically true, but it is an operationally useless definition. They have no understanding of the mechanism, which is that positive pay checks every presented item against a list of checks the business actually issued, and flags anything that doesn't match before it clears.

Without understanding the fundamentals, they can't evaluate whether they need it, and they assume their existing setup is already covering them.

A more accessible way to describe positive pay is as check validation. The business sends a list of legitimate checks and the bank cross-checks every presented item against that list. Anything that doesn't match gets stopped before it clears. This description paints a much clearer picture of the product’s function and the benefit the client will receive.

They Assume Check Fraud Is Not a Problem for Them

Most businesses that haven’t been hit by fraud yet are convinced they can’t be. They write checks to known vendors, have dual signature requirements, and store check stock securely, assuming these practices eliminate risk.

The problem is that modern check fraud rarely comes from inside the business It most commonly takes the form of mail theft is about mail theft, counterfeit checks, check washing, and information stolen off of vendor portals or other publicly available account information sources. None of the internal controls businesses rely on stop those threats.

Lead with current check fraud data specific to your client’s industry and geography and use real fraud patterns from this year rather than hypothetical scenarios. Once a business sees that the threat sits outside their walls rather than inside them, the "we already have controls for this" objection tends to fall apart on its own.

They Think Implementation Will Be Painful

Businesses hear positive pay and imagine a complex, time-consuming setup process that will disrupt their current accounts payable workflow. They assume they’ll need new software and new file formats, not to mention extensive training for their AP staff.

In reality, most implementations are done in under an hour and plug directly into whatever check-printing software the business already uses. But if it feels like an operational burden, the decision will get pushed off indefinitely, oftentimes for years.

De-risk the conversation by making the set-up simple and concrete. Show them exactly what the setup process looks like and make it clear that their current check printing process doesn’t change at all; the positive pay file is generated automatically by their already-existing accounting software. If you can remove the perception of a complex and difficult process, you’ll get rid of most of the remaining resistance as well.

Where Banks Get in Their Own Way

Banks tend to unwittingly contribute to low positive pay adoption by doing these three things:

Positioning Positive Pay as an Add-On Product

When positive pay is presented as an optional product, it competes head-to-head with every other discretionary business expense. The business compares the cost of positive pay to the cost of things like advertising or new hires, and unless they’ve already been burned by fraud, it usually comes up short.

Position positive pay instead as a baseline necessity for every check-writing business, the same way businesses don’t debate whether they need insurance or locks on their doors. Framed that way, the question is no longer "do we want this?" but "why would we operate without this?"

Pricing Positive Pay as Its Own Line Item

A standalone fee of $50/month plus $0.10 per item reviewed comes across as an incremental cost against a loss that hasn’t happened yet, which is psychologically difficult to justify.

Instead, bundle it with ACH filters and enhanced monitoring, and price the whole thing as a protection package. A $150/month comprehensive protection feels worth the investment because it covers all the bases, whereas a $50/month positive pay line item feels like an optional expense, even though it technically covers the same risk.

Implementing Positive Pay Without Preparing Your Client for the First Exception

The first time a business receives a positive pay exception alert sets the tone for its relationship with the product. If they do not understand why the exception happened or what to do about it, positive pay starts to feel like it’s creating work rather than preventing fraud, and some clients will disable it right then and there.

Proactively prepare your clients for their first exception. Walk them through exactly what exceptions look like, why they happen(both fraud and non-fraud reasons), and how to resolve them in the initial implementation call, then follow up within 24 hours of their first exception to make sure they handled it correctly. If done properly, that first alert will function as proof that the product you sold actually does what you promised.

How to Get to 75% Adoption

Getting positive pay adoption from under 50% to over 75% in your portfolio requires a structured push, not just a one-off campaign. Here’s how you build it:

Segment Your Portfolio by Check Activity

Not every client needs positive pay with the same urgency. Segment your treasury management portfolio into three categories:

High-priority clients —  need positive pay now

·        Businesses writing 20+ checks per month

·        Businesses writing checks over $10,000 regularly

·        Industries with high check fraud exposure (real estate, property management, construction, or professional services)

·        Any client that has experienced check fraud or a fraud attempt in the past 24 months

Medium-priority clients  —  can wait up to 6 months:

·        Businesses writing 5–20 checks per month

·        Businesses in moderate-risk industries

·        Clients with solid treasury management relationships but no recent fraud incidents

Lower-priority clients —  would be helpful, but not a necessity

·        Businesses writing fewer than 5 checks per month

·        Businesses transitioning away from checks toward ACH or electronic payments

Start your outreach with the high-priority clients. That’s where adoption moves the needle furthest on both client protection and fee income.

Build a Proactive Outreach Campaign

Positive pay adoption only improves through one-to-one outreach from an RM or TM officer to each high-priority client.

During weeks one and two, you’ll send a personalized email referencing your client’s actual check volume and current fraud trends in their industry,

Subject: A quick recommendation for protecting your check payments

Body:

"Hi [Name], I wanted to reach out because I noticed you're writing about [X] checks a month, and we've seen a real jump in check fraud targeting [industry] over the past year. I'd like to grab 15 minutes to walk you through positive pay. It stops altered and counterfeit checks before they clear, and it takes less than an hour to set up. Are you free for a quick call next week?"

In weeks three and four, schedule a 15-minute call using the framework below for the clients who responded. For clients who do not respond, make one follow-up call referencing the email.

The 15-Minute Positive Pay Conversation Framework

The first five minutes: Establish the threat

"Check fraud has picked up a lot in the past 18 months, especially mail theft and counterfeit checks built off publicly available account details. Businesses in [industry] are getting hit because [specific reason]. The controls most companies rely on — dual signatures, locked check stock — don't touch this, because the fraud happens after the check leaves your hands."

The middle five minutes: Explain how positive pay works

"Positive pay is a check validation service. When you print checks in QuickBooks or your accounting system, it creates a file with every check you've issued with all the necessary details. We pull that file in daily. When a check comes in for payment, we check it against your file. Matches clear. Anything that doesn't match, whether it has the wrong amount or the wrong payee, or it’s a check number you never issued, gets flagged and you get an alert before it clears. You decide whether to pay or return it. Fraud gets stopped before you lose your money."

For two minutes: Address implementation

"Setup runs about 30 minutes.  We turn on the service, confirm your accounting software's generating the file correctly, and run one test batch. After that it's automatic. Your software sends the file daily, and you only hear from us if something doesn't match. Your check printing doesn't change at all."

The last three minutes: Present pricing and close

"It's $50 a month plus $0.10 per check reviewed. For you, writing about [X] checks a month, that's roughly $[Y]. Think of it as insurance on your operating cash flow: a single incident can run $10,000 or more. I can have this live for you this week. Want to move forward?"

Log the outcome in the CRM and schedule implementation right away for anyone who says yes.

Track Adoption Metrics and Iterate

Measure the following metrics monthly and adjust your approach based on what you learn:

Adoption rate by segment:

·        What percentage of high-priority clients have adopted positive pay?

·        What percentage of medium-priority clients have adopted?

Conversion rate from outreach:

·        Of clients contacted, what percentage agreed to adopt positive pay?

Below 50% means it’s worth revisiting how you position the product.

Time from agreement to go-live:

·        How long does it take to implement positive pay after a client agrees?

If the process takes longer than 2 weeks, it needs streamlining

Exception handling satisfaction:

·        Are clients handling their first exceptions smoothly, or are they confused?

If there is a high rate of confusion, improve your exception training during implementation.

What to Do When a Client Says No

Not every client will sign up for positive pay after the first conversation. Here’s how to handle the most common objections:

We haven’t had a problem with check fraud, so we don’t need it.

Response:

“That's actually the best time to add it. Positive pay works best before fraud happens. Once you've taken a loss, you're recovering instead of preventing. The clients we work with who have it in place don't have check fraud horror stories. The ones without it are the ones calling us after a $15,000 counterfeit check clears. It's a lot easier to stop than to fix."

That sounds like more work for our AP team.

Response:

"I understand that concern. The good news is that positive pay doesn’t actually add any work to your daily process. Your accounting software builds the check file automatically when you print checks, and we import it in the background. You only hear from us on an exception, which usually happens once or twice a quarter, and resolving one takes about two minutes in online banking. It's a lot less work than dealing with a fraudulent check that's already cleared."

We’re moving away from checks anyway

Response:

"That is a great long-term strategy, and we can help you transition more of your payments to ACH. In the meantime, as long as you're writing any, even just five or ten a month, those are still exposed. Positive pay covers you through the transition, and once you're fully off checks, we can drop the service. But while you're still writing them, you should have something in place."

Turning Positive Pay Into a Portfolio Habit

Positive pay adoption should become a portfolio management habit that happens automatically as a natural part of onboarding new clients and reviewing existing relationships.

Positive Pay as Part of New Client Onboarding

Every new treasury management client that will be writing checks should be offered positive pay as a standard part of the onboarding process.

Onboarding script:

“Since you'll be writing checks as part of your cash management setup, I'm recommending we turn on positive pay from day one. It's a check validation service that stops fraudulent or altered checks before they clear, and it's part of most of our standard TM setups for businesses writing checks regularly. Let me show you how it works."

When positioned as standard operating procedure, adoption will be significantly higher.

Positive Pay Review During Annual TM Reviews

Every annual TM review should include a quick check on whether your clients have positive pay enabled (if they write checks) and whether their usage patterns suggest they need it.

Review question:

"I see you're writing about [X] checks a month. Do you have positive pay on right now? [If not:] Given that volume, I'd really recommend adding it. It's the most direct control we've got against check fraud, and we're seeing more attempts in [industry]. Want me to walk you through it?"

Positive Pay as Part of Fraud Review Conversations

Every fraud review with a check-writing client should include a positive pay assessment. If they don’t have it enabled, it should be the first recommendation.

Fraud review positioning:

"You mentioned you write checks to vendors regularly. Do you have positive pay enabled? [If not:] That's the biggest gap in your current setup. It stops fraud before the money leaves your account, which beats trying to recover it after a fraudulent check has already cleared. I'd recommend we turn that on right away."

Adoption Is a Process, Not a Product

Positive pay adoption won’t improve by making the product better or lowering its price. It improves by changing how you position it, how you explain its function, how to set it up, and how you integrate it into the client conversations you’re already having.

The banks that get positive pay adoption above 75% are the ones treating it as a baseline control, reaching out to high-risk clients before an incident forces the conversation, cutting the friction out of implementation, and building the positive pay question into onboarding, annual reviews, and fraud assessments as a matter of course.

If your positive pay adoption is below 50% today, the roadmap above is enough to get you past 75% within a year.

Want to talk to an expert about how to implement this roadmap in your institution? Contact us to get started increasing your positive pay adoption rates today.