KeyBank Rolls Out Positive Pay Solution for SMEs

Cleveland-based KeyBank has introduced a service for its small and midsize business customers designed to nip check and ACH fraud in the bud. The new online feature is the latest addition to the bank's Key Business Online service, which was launched April 2008.

The new tool combines check and ACH fraud prevention capabilities that are customized to the needs of small and midsize enterprises (SMEs). According to KeyBank, the fraud prevention features enable businesses to review the previous day's posted check and ACH items, and reverse those that appear to be fraudulent or unauthorized. This makes it possible to recognize and halt fraud early. It also features a bad check recovery system. In addition to the new online fraud prevention services, KeyBank provides a team of nearly 80 investigators and fraud prevention specialists who are available to assist clients who may have experienced fraud problems.

According to Eric Girard, VP of Key's Business Internet Services, positive pay services like these have historically been driven by and targeted to larger corporate customers. This new suite of services has been customized to meet the slightly less complex requirements of SMEs.

"Our small business clients have had access to those traditional positive pay services for many years, as well as access to our fraud experts," Girard explains. "After listening to client feedback, we wanted to provide a more streamlined service for small businesses and their less complex needs. Key Business Online is now the preferable solution for small businesses, since it has fewer product requisites and is less costly and complex to implement."

To meet these specific needs, Girard says KeyBank developed a solution that was wallet friendly to its SMEs and that required little in the way of technical expertise—it only requires a Web browser to work. The bank also developed the solution with an eye on efficiency, and to bring automation to the distribution and enrollment processes, he notes.

Good collaboration between several groups at KeyBank were instrumental in helping to launch the positive pay services for Key's SME clients, he remarks. "An internal challenge faced by many banks over the years has been the disparate goals and strategies among treasury management, small business product management and online channel management groups," Girard explains. "Thankfully, we have achieved an excellent collaboration across those groups at Key, keeping our small business clients' needs as the top priority, regardless of where the work falls, and ultimately arriving at the Key Business Online solution."