Your PAC just issued 20 checks to fundraisers totaling $50,000 in some key races. One of these checks gets lost and falls into the wrong hands. Without Positive Pay protection, that check could be altered to $25,000—and your bank would honor the fraudulent payment.
This fraud protection should be standard for any organization writing multiple checks to various recipients. Yet when PAC managers call their banks to set it up, they hit a wall of transfers, hold music, and “we’ll get back to you” promises that never materialize.
The problem isn’t that Positive Pay doesn’t exist. It’s that the structure of large banking institutions can create service gaps that leave PACs without this critical protection.
The Service Gap That’s Leaving Your PAC Exposed
Positive Pay is straightforward fraud protection: you provide your bank with details about every check you issue, and the bank matches those details against checks presented for payment. If something doesn’t match, the payment stops and you get alerted.
Here’s what’s not simple: actually getting it set up when you’re running a PAC.
Corporate treasury departments have sophisticated banking relationships with direct contacts for complex services. But PAC managers can’t access those treasury contacts, can’t navigate the bank’s system, and nobody in commercial banking knows how to help them.
When You’re Managing the PAC
If you’re running a trade association or corporate PAC, you inherited your parent organization’s banking relationship—but not their access. Large institutions often separate treasury services from commercial banking for operational efficiency. You can find yourself caught between departments while your checks remain unprotected.
The Real Cost
This isn’t just inconvenient—it’s risky. For PACs writing multiple checks to fundraisers, vendors, and campaign services, check fraud exposure is significant. The protection should cost maybe $50-100 monthly. The potential loss from one altered check? Tens of thousands meant for your mission, not fraud recovery.
A Different Approach
Community banks that specialize in PAC operations offer direct access to decision-makers who understand your needs. When you need Positive Pay, you call your banker directly—no transfer maze. They know your compliance requirements and can configure services within days, not weeks.
The Path Forward
Your parent organization’s banking relationship doesn’t have to dictate your PAC’s service quality. The most effective PAC managers ask: “Does this bank actually serve our specific needs?”
Every PAC faces security risks. But not every PAC has to accept inadequate fraud protection as an inevitable part of inherited banking relationships.
Your donors trust you to protect their contributions while advancing your mission. Partner with a bank that shares that commitment by providing the specialized services and direct access you need to operate securely and efficiently.
