Positive Pay in Australia: 2025 Guide for Business Fraud Prevention

Fraud is a persistent threat to Australian businesses, costing millions every year. As payment methods evolve, so do the tactics of fraudsters. Enter Positive Pay: a sophisticated, bank-driven solution that’s gaining momentum across the country in 2025. But what is Positive Pay, and why are more Aussie businesses turning to it right now?

What Is Positive Pay and How Does It Work?

Positive Pay is a service offered by banks to help businesses detect and prevent cheque and payment fraud. When a company issues cheques or electronic payments, it sends a list of those payments to the bank, including details like payee, amount, and cheque number. The bank then cross-checks any presented payments against this list before processing them.

• Cheque Positive Pay: The business provides the bank with cheque details in advance. If a cheque is presented that doesn’t match, the bank flags it for review.

• ACH/Direct Credit Positive Pay: Increasingly common in 2025, this extends the concept to electronic payments. Banks verify payee account details and amounts before releasing funds.

For example, a Sydney construction firm using Positive Pay discovered an altered cheque for $15,000. Because the bank flagged the mismatch, the fraud was stopped cold—saving the business a hefty loss.

Why Positive Pay Is Booming in 2025

Several trends are fueling Positive Pay’s adoption in Australia this year:

• Rising Payment Fraud: According to the Australian Payments Network, cheque and digital payment fraud losses climbed in 2024, with cybercriminals targeting both small businesses and large enterprises.

• Regulatory Shifts: The Australian Government’s 2025 “Secure Payments Initiative” is pushing financial institutions to offer advanced anti-fraud services. Positive Pay is now a compliance tick for many industries, from aged care to construction.

• Modern Banking Tech: Major banks like NAB and Westpac have upgraded their cash management platforms to automate Positive Pay, making it accessible for businesses of all sizes. Integration with cloud-based accounting software is now the norm.

With more payments moving online, fraudsters are getting craftier. Positive Pay acts as a crucial final check—no longer just a ‘big end of town’ solution.

Implementing Positive Pay: Practical Steps for Aussie Businesses

Thinking of adding Positive Pay to your business toolkit? Here’s how to get started:

• Talk to Your Bank: Ask if they offer Positive Pay for cheques, electronic payments, or both. In 2025, most major and many regional banks have this feature—sometimes branded under different names.

• Integrate With Accounting Systems: Look for seamless connections between your accounting software (like Xero or MYOB) and your bank’s Positive Pay service. This reduces manual entry and errors.

• Set Internal Controls: Ensure staff are trained on submitting payment files and reviewing flagged transactions promptly. Assign clear roles to avoid bottlenecks if a payment is stopped for review.

• Review and Test: Run periodic tests to ensure your Positive Pay process works smoothly—fraudsters look for weak spots, so regular checks are essential.

Real-world example: A Melbourne wholesale distributor implemented Positive Pay in January 2025 and caught two attempted payment diversions within three months, thanks to automated alerts and quick staff response.

Is Positive Pay Right for Your Business?

While Positive Pay is especially valuable for businesses that issue high volumes of cheques or regular electronic payments, it’s increasingly relevant for SMEs as fraudsters target smaller firms. Consider your transaction volume, risk profile, and current bank offerings. The investment in setup and training is minor compared to the potential cost of fraud losses.