Booster Club Positive Pay Checklist: Prevent Check Fraud Before Funds Leave the Account

This guide is for informational purposes only and does not constitute legal, accounting, or compliance advice. Consult a licensed CPA or attorney for guidance specific to your organization’s structure, tax-exempt status, and jurisdiction.

Hall of fame walls and digital recognition displays represent commitments funded by the same accounts that positive pay is designed to protect—when fraudulent checks alter those balances, the recognition program and the donors who funded it both bear the loss

What Positive Pay Is and Why Booster Clubs Need It

Positive pay is a bank-administered service that compares each check presented for payment against a file of checks the organization authorized and submitted to the bank. The bank performs the comparison before releasing funds. When a presented check matches the file—same check number, same dollar amount, and often the same payee—it clears automatically. When it does not match, the bank flags it as an exception and holds it pending a decision from the authorized reviewer. The decision window is typically the same business day.

The three most common fraud types that positive pay stops are:

Counterfeit checks. A fraudster creates a check that carries the booster club’s account number but was never issued by the organization. Because the check number does not exist in the issue file the bank holds, it generates an exception immediately rather than clearing undetected.

Altered amount. A legitimate check issued for $175 is chemically washed and rewritten for $1,750. The check number matches, but the dollar amount does not match the file. The discrepancy surfaces as an exception.

Unauthorized check number. A check is issued from a pad the treasurer did not register—perhaps a surplus pad from a prior fiscal year or from a set used during an officer transition. Because the number was never submitted to the issue file, it cannot clear without a manual review.

For booster clubs specifically, these risks are elevated during predictable windows: end-of-season when check volume spikes around banquets and award orders; officer transitions when new and outgoing personnel both hold signing authority; and high-attendance fundraiser events when cash handling and check writing happen simultaneously across multiple volunteers. Positive pay runs continuously and catches exceptions regardless of whether anyone is watching the account at that moment.

Organizations exploring how to start a booster club from a governance-first perspective will find that positive pay enrollment is one of the earliest banking decisions a new club can make—and one of the lowest-cost controls available relative to the fraud exposure it addresses.

Booster Club Positive Pay Checklist: Bank Enrollment

The enrollment checklist runs once, when the organization sets up positive pay for the first time. Complete every item in sequence. Missing an enrollment step typically delays activation by one to two bank processing cycles.

Enrollment Tasks

• Confirm your bank offers positive pay — Contact your bank’s treasury or cash management department. Confirm whether the service covers paper checks only or also ACH debit transactions (payee positive pay is a separate, more comprehensive option at some institutions)
• Request the enrollment forms and fee schedule — Document the monthly service fee and any per-exception charge. Note the deadline for exception review (typically by a specified time each business day)
• Designate the authorized reviewer — Identify which officer is responsible for reviewing daily exception items. Record that person’s name and role in the enrollment paperwork and confirm who serves as backup during absences
• Obtain the check issue file format specification — Ask the bank for the exact format required: column order, date format, payee field character limit, and whether the file is submitted via online banking portal, SFTP, or email. Request a sample file
• Set up the file submission method — Configure access credentials, folder paths, or upload permissions for the submission channel the bank specifies
• Submit a test file before go-live — Send a test file with one or two historical check records before the service goes live. Confirm the bank receives and processes it correctly
• Establish the exception review login — Confirm the treasury portal login, the exception review screen location, and the daily decision deadline
• Record the service in the financial procedures manual — Document that positive pay is active, the name of the authorized reviewer, the daily submission and review deadlines, and the backup reviewer’s name
• Notify the full board — Communicate to all board members that positive pay is in place. Any officer authorized to sign checks should understand that their check must be submitted to the issue file before it will clear

Positive Pay Operating Checklist: Daily and Weekly Tasks

Once enrolled, positive pay requires a small set of recurring tasks to remain effective. The daily task is the most critical: a check issue file that is submitted late—or not submitted—leaves the day’s issued checks without protection.

Daily Tasks

• Generate the check issue file for all checks written that day — Include every check issued since the last file submission: check number, dollar amount, issue date, and payee name (if your bank uses payee positive pay). Do not batch multiple days into one submission without confirming your bank’s treatment of late-submitted checks
• Submit the file before the bank’s daily cutoff — The bank’s cutoff for receiving issue files is typically mid-day or early afternoon. Late submissions may result in that day’s checks defaulting to an unprotected status or generating exceptions the following day
• Log into the exception review portal and check for exception items — Even if no checks were issued that day, confirm there are no exception items from prior submissions that remain in the queue awaiting a decision
• Review each exception item — For each exception, determine whether to pay or return the item using the decision criteria below. Do not allow exception items to time out; unresolved exceptions may default to either pay or return depending on your bank’s settings—confirm which default applies at enrollment
• Document each exception decision — Record the check number, exception type, decision (pay or return), reason, and the name of the reviewer who made the decision. Retain this log in the organization’s financial records

Weekly Tasks

• Reconcile the check issue file against the internal check register — Compare every check submitted to the bank’s issue file against the internal ledger to confirm no checks were issued but not submitted and no submitted checks are missing from internal records
• Review outstanding exception decisions — Confirm that all exceptions from the prior week were resolved and that no items are pending beyond the decision deadline
• Confirm backup reviewer coverage for the coming week — If the primary reviewer will be unavailable on any day, confirm the backup reviewer is prepared and has portal access

Athletic honor walls represent years of community investment in recognition programs—positive pay protects the accounts that collect and disburse those contributions from the check fraud patterns that most commonly target volunteer-led organizations

The Check Issue File: What to Include Every Time

The check issue file is the core mechanism of positive pay. Every field the bank requires must be accurate and complete. A file submitted with incorrect data produces exceptions on legitimate checks, which creates unnecessary review work and, if not resolved in time, may result in the organization’s own valid checks being returned unpaid.

If the bank uses payee positive pay—the more comprehensive version that matches payee name in addition to check number and amount—accuracy in the payee name field becomes especially important. A check made out to “J. Smith Athletic Supply” that is submitted as “John Smith Athletic Supply” may generate an exception on a valid check. Ask the bank how closely payee names are matched and whether partial matches are accepted.

File submission after voiding a check. When a check is voided before it is presented, submit a record to the issue file with the void flag active. This prevents the voided check from clearing if it is presented—either in error or fraudulently—after the void date. Not submitting a void record for a canceled check leaves that check number in an ambiguous state.

Exception Item Decision Workflow

An exception item is a check presented to the bank that does not match the issue file. Every exception requires a decision: pay the item or return it unpaid. The decision must be made within the bank’s daily deadline, typically before a specific cutoff time on the business day the exception is surfaced.

Use this decision sequence for each exception item:

Step 1: Identify the mismatch type.

• Check number is not in the issue file → likely counterfeit or from an unregistered check pad
• Dollar amount does not match → possible alteration; verify the original check register entry
• Payee name does not match → possible alteration or payee positive pay formatting discrepancy
• Multiple mismatches → elevated fraud risk; treat as suspected fraud

Step 2: Pull the internal check register. Search the check register for the check number in the exception. If the check number exists in internal records:

• Compare the internal dollar amount to the exception item amount
• Compare the internal payee to the exception payee
• If either differs, do not pay until both discrepancies are explained

Step 3: Locate the physical check copy or authorization record. If the internal register matches, confirm the check was physically issued by locating the duplicate copy, carbon record, or payment authorization documentation. A check number in the system that the officer who signed checks does not recognize is a red flag regardless of whether the amounts match.

Step 4: Consult the second authorized officer before making the pay decision on any item with unexplained discrepancies. An exception item should not be approved by a single officer when a discrepancy has not been explained. The dual review requirement at this stage mirrors the dual signature control on the check’s issuance side.

Step 5: Document the decision and the rationale. Whether the decision is to pay or return, record the check number, exception type, decision, rationale, and reviewer name before the bank’s daily deadline.

Step 6: If the item is returned, follow the fraud response procedure. A returned exception item does not automatically mean fraud has occurred—it may indicate a data entry error in the issue file or a formatting mismatch in the payee field. But any returned item that cannot be traced to an innocent cause should be escalated through the organization’s fraud response procedures. Preserve the exception notification from the bank, do not discuss the matter with anyone outside the core officers and school administration, and consult qualified legal counsel before contacting law enforcement.

Digital team histories and hallway recognition displays represent multi-year institutional commitments—positive pay is one of the financial controls that keeps the accounts funding these programs protected between fundraising cycles

Positive Pay Quick-Reference Table

Use this table at each monthly board meeting and officer training session to confirm that positive pay is operating correctly.

Connecting Positive Pay to Sponsor and Donor Fund Integrity

For booster clubs, the funds flowing through the checking account are not generic organizational revenue. They are sponsor payments tied to recognition tier agreements, donor gifts designated for specific programs or displays, and fundraiser proceeds committed to student-athlete awards and program expenses. Fraud that drains the account does not affect a line item—it affects specific commitments made to specific contributors.

A sponsor who pays $2,500 for a named display panel expects that payment to fund the installation. A donor who gives $500 to the end-of-season award program expects those funds to reach that program. If a counterfeit check for $1,800 clears undetected and is not discovered until the monthly bank reconciliation, the organization must either absorb the loss from funds reserved for recognized commitments or approach those contributors to explain the gap. Neither outcome is recoverable without cost to donor and sponsor trust.

Positive pay addresses this risk at the earliest possible intervention point. The exception review happens before the funds leave the account. A returned item costs the bank’s exception review fee—typically a few dollars—and the treasurer’s time. A fraud loss that clears before detection costs the full amount and the organizational credibility that follows.

Building a strong athletic booster club fundraising foundation depends on maintaining the donor and sponsor confidence that requires clean financial controls—positive pay is one of the banking-layer controls that makes that confidence defensible to contributors who ask how funds are protected.

Booster club fundraising programs that generate consistent revenue also create consistent check-writing activity—exactly the environment where positive pay provides the greatest protection per dollar of service cost, because higher check volume means more opportunities for fraudulent items to slip through unnoticed.

Positive Pay and the Dual Authorization Connection

Positive pay and dual signature authorization are complementary controls that address the same fraud risk at two different points in the payment process. Dual authorization prevents unauthorized checks from being issued. Positive pay catches unauthorized checks that reach the bank despite the issuance controls.

Neither control replaces the other. A check issued with two authorized signatures can still be counterfeited before it is cashed. A forged check can be submitted with a check number that no officer ever authorized. Dual authorization protects against internal actors; positive pay catches external fraud that bypasses the issuance process entirely.

The connection also runs through documentation. A dual signature control that produces a clean authorization record for every check makes the exception review process faster: when an exception surfaces, the treasurer can immediately verify whether the check number exists in the internal register with two authorized signatures. If it does, the likely cause is a file formatting mismatch. If it does not, the absence of an authorization record is an immediate red flag.

Programs that run active fundraising and recognition events should treat positive pay and dual authorization as a paired control set rather than alternatives—both should be operating simultaneously during any period when check volume is elevated.

Booster club ideas that strengthen athletic program support include financial governance practices that protect the community trust behind athletic and recognition programs—positive pay is one of the least visible but most reliably effective of those practices.

Recognition environments that combine murals, digital displays, and trophy cases represent sustained community investment—positive pay protects the disbursement side of those investments from the check fraud patterns most commonly targeting volunteer-run accounts

Payee Positive Pay: The Enhanced Option

Standard positive pay matches check number and dollar amount. Payee positive pay adds a third match point: the payee name. A counterfeit check that correctly copies the check number and dollar amount from a legitimate item cannot pass payee positive pay if the payee name is altered or fabricated.

Not all banks offer payee positive pay. For those that do, it carries either a higher monthly fee or a per-transaction charge. Whether the additional cost is justified depends on the organization’s check volume, the average check size, and whether prior incidents or the treasurer’s risk assessment suggest the payee line is a likely target.

If your bank offers payee positive pay, the enrollment checklist expands to include:

• Confirm payee matching standards — Ask the bank how closely payee names must match (exact, near-match threshold, or configured tolerance) and how abbreviations and punctuation are handled
• Audit current payee name practices — Review how the organization writes payee names on checks to ensure consistency with how they will be submitted in the issue file
• Train check-writing officers on payee standardization — Every officer who writes checks should use the same format for recurring payees so the issue file always matches what is printed

ACH Positive Pay: Covering Electronic Debits

Positive pay traditionally covers paper checks. ACH debit block or ACH debit filter—sometimes called ACH positive pay—extends similar protection to electronic debits. When an unauthorized ACH debit is initiated against the organization’s account, the filter either blocks all ACH debits (full block) or blocks debits from originators not on the approved list (filter).

For booster clubs that pay some vendors by ACH or that have their account number circulating through payment platforms, ACH debit filter prevents unauthorized electronic withdrawals that positive pay does not cover. The two controls together provide comprehensive protection across both check and electronic payment channels.

If ACH debit protection is available through your bank, add the following to the enrollment checklist:

• Compile the approved ACH originator list — List all entities authorized to initiate ACH debits from the account: recurring vendors, payroll processors, tax payment services
• Submit the approved originator list to the bank — Configure the filter with the list at enrollment
• Review and update the approved list annually — Add new authorized originators; remove vendors no longer used

Positive Pay During Officer Transitions

Officer transitions are the highest-risk moment in the positive pay lifecycle. An incoming treasurer who does not know that positive pay is active—or who does not have portal credentials for the exception review—creates an unreviewed exception queue that either times out to a default decision or generates returned items on legitimate checks.

Build the following steps into the officer transition checklist:

• Brief the incoming treasurer on positive pay at least two weeks before the transition date — Walk through the daily issue file submission process, the exception review portal, the daily decision deadline, and the documentation requirement
• Transfer portal login credentials under your bank’s account management process — Do not share passwords; update the authorized reviewer on the bank’s records so the incoming officer has independent access
• Confirm the outgoing treasurer’s access is removed from the exception review portal — A former officer who retains portal access after the transition is an unnecessary internal control gap
• Submit a check issue file on the transition date — If the outgoing treasurer issued checks in the final days of their term, confirm those checks are in the issue file before the incoming treasurer assumes primary review responsibility
• Notify the bank of the officer change — Update the authorized reviewer contact on the bank’s account records so exception notifications reach the correct person

When a booster club closes a bank account during a transition or restructuring, the positive pay service should be formally terminated at the same time the account is closed—outstanding exception items should be resolved, and the bank should confirm the service is deactivated before the account is closed to prevent residual file submissions or exception notifications to an account that no longer exists.

Positive Pay and Year-End Financial Review

At fiscal year-end, the positive pay record provides a secondary source of verification that complements the bank reconciliation and the check register. The bank’s exception log documents every check that generated a mismatch and every decision made on those items. A clean exception log—few exceptions, all resolved same-day, all decisions documented—is evidence that the organization’s check-writing process is consistent with its internal records throughout the year.

During the annual review, confirm:

• All exceptions from the fiscal year were resolved — No items remain in the exception queue from prior months
• All exception decisions are documented — The decision log has a record for every exception, including the reviewer’s name and the reason for the pay or return decision
• The issue file format is still current — Confirm with the bank that no format changes are coming in the next year and that the current submission process remains valid
• Service fees are recorded in the financial records — Positive pay fees appear as bank service charges; confirm they are recorded in the ledger and reflected in the annual financial statements
• Authorized reviewer roles are current — The officer currently listed as the authorized reviewer on the bank’s records matches the current treasurer or president

Year-round booster club fundraising programs generate consistent financial activity across multiple seasons—positive pay that is reviewed at year-end should be confirmed as operating throughout that entire activity period, not just during the months when check volume was highest.

Recognition installations like this wall of honor are the visible result of donor and sponsor commitments—positive pay protects the accounts receiving those commitments from the check fraud that could divert those funds before they reach the programs they were intended to support

Sample Positive Pay Policy Statement

Use the following language as a starting point for a written policy statement documenting the organization’s positive pay controls. Adapt it to match your bank’s specific process, officer roles, and board requirements before adopting it formally.

BOOSTER CLUB POSITIVE PAY POLICY
[Organization Name] | [School / Program]
Adopted: [Date] | Last Reviewed: [Date]

1. PURPOSE

This policy establishes the procedures for operating the organization's
positive pay service, a bank-administered check fraud prevention control
that matches checks presented for payment against a file of checks the
organization has authorized and submitted to the bank.

2. CHECK ISSUE FILE SUBMISSION

The Treasurer shall submit a check issue file to the bank by [bank's
specified cutoff time] each business day that the organization issues
checks. The file shall include the check number, dollar amount, issue date,
and payee name for every check issued since the prior submission. Voided
checks shall be submitted with the void flag active on the date of voiding.

3. EXCEPTION REVIEW

The Treasurer, or the designated backup reviewer in the Treasurer's absence,
shall review all exception items through the bank's treasury portal by
[bank's specified decision deadline] each business day. Exceptions shall not
be allowed to time out to a default decision without an active decision by
an authorized reviewer.

4. EXCEPTION DECISION CRITERIA

Exceptions shall be returned unpaid if the check cannot be matched to an
internal check register entry with the same number, amount, and an
authorized payment record. Exceptions shall be approved for payment only
when the mismatch is explained by a confirmed data entry or formatting
error, and only after consultation with a second authorized officer.

5. EXCEPTION DOCUMENTATION

The Treasurer shall maintain a written log of all exception decisions,
recording the check number, exception type, decision, reason, and reviewer
name. The exception log shall be presented to the Board at each meeting and
retained in the organization's permanent financial records.

6. OFFICER TRANSITIONS

Incoming officers assuming the Treasurer role shall complete positive pay
orientation before the transition date. The outgoing Treasurer's portal
access shall be removed by the bank on the transition date. The authorized
reviewer on the bank's records shall be updated to reflect the incoming
officer's name and contact information.

7. ANNUAL REVIEW

The Treasurer and President shall review the positive pay enrollment,
authorized reviewer designations, and exception log at fiscal year-end.
Any updates required to the bank authorization, file format, or officer
contacts shall be completed before the start of the new fiscal year.

Frequently Asked Questions

What does positive pay cost, and is it worth it for a small booster club?

Most banks charge a monthly service fee in the range of a few dollars to approximately twenty-five dollars, plus a per-exception charge when items require review. The cost is modest relative to the median check fraud loss for a small nonprofit. For booster clubs that write checks regularly—vendor payments, reimbursements, scholarship disbursements, award orders—positive pay covers a meaningful transaction volume for a predictable monthly fee. Clubs with very low check volume (fewer than a handful of checks per month) should still evaluate it; the monthly fee may be lower than they assume and the coverage period includes the high-risk transition window around officer elections.

Does positive pay work for checks written by hand rather than printed by software?

Yes. The bank matches against the issue file the organization submits, not against a printed check format. Whether the check is handwritten or computer-generated, the treasurer enters the check number, dollar amount, issue date, and payee name into the issue file and submits it. The match is between the submitted file and the check as presented at the bank. Format of the check itself does not affect the matching process.

What happens if the treasurer forgets to submit the issue file one day?

The consequences depend on the bank’s policy for checks presented without a corresponding issue file record. Some banks automatically return all unmatched checks. Others default to paying them. Confirm the default behavior at enrollment and set a reminder process—calendar alerts, a shared treasurer task list—to prevent missed submissions. A missed submission that results in a fraudulent check clearing under a default-pay setting creates an exception-resolution situation that is more expensive than the submission discipline it bypassed.

Can positive pay protect against internal fraud by an authorized officer?

Positive pay is designed primarily to detect external fraud—forged, counterfeit, or altered checks created outside the organization. If an authorized check signer issues a check for an unauthorized purpose and submits the corresponding record to the issue file, positive pay will not flag it because the check number and amount match. Internal fraud controls—dual signature requirements, board authorization for payments above a threshold, quarterly reconciliation reviews—address the internal actor risk that positive pay does not cover. The two control sets work together; neither eliminates the need for the other.

How does positive pay fit into the monthly bank reconciliation?

Positive pay generates an exception log that serves as a secondary source of transaction verification during reconciliation. During the monthly reconciliation, the treasurer should confirm that all exceptions from the month were resolved, that all returned items are reflected correctly in the internal ledger (not as cleared payments), and that the exception log does not show any items that were paid despite unexplained mismatches. A reconciliation that ignores the exception log misses a data source that can surface errors or fraud patterns the check register alone would not reveal.

Does positive pay apply to ACH payments and wire transfers?

Standard positive pay applies only to paper checks. Electronic debit transactions—ACH transfers initiated by vendors, automatic bill payments, wire transfers—require a separate ACH debit block or filter service to receive equivalent protection. Ask your bank whether ACH debit filtering is available alongside positive pay and whether it can be enrolled in the same setup process. For booster clubs with any recurring automatic debits or electronic vendor payments, ACH protection is a logical companion to positive pay on the paper check side.

What should the organization do if positive pay flags a check and the treasurer suspects fraud?

Return the item through the bank’s exception portal and preserve all documentation of the exception notification, the check image, and the return decision. Do not contact the potential perpetrator, do not discuss the situation publicly, and do not access the bank account from systems that may have been compromised. Notify the board president and school administration immediately. Consult qualified legal counsel before any contact with law enforcement. If the bank’s fraud investigation unit contacts the organization, cooperate fully and follow counsel’s guidance. The fraud response plan adopted by the board should govern all subsequent steps.

When your program is ready to build the recognition infrastructure that reflects the careful financial stewardship positive pay protects—digital donor walls with accurate giving histories, lobby displays with verified sponsor tier placements, and athletic records boards built for long-term governance review—explore how Rocket Alumni Solutions supports booster clubs with recognition systems designed to grow alongside strong financial controls.