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What Is Certegy Easy Pay?

There are many different credit services and companies to choose from when it comes to choosing credit. However, in The United States, Humm offers a simple alternative to traditional credit banking, and offers a great, easy to understand way to keep track of your finances, and still make those necessary everyday purchases!

Certegy is a public corporation dedicated to ensuring the security and safety of check cashing services around the world. One of their many services, Ezi-Pay, or now known as Humm, allows you to “buy now, pay later”, and pay zero interest on an active account for up to 24 months. On top of this, Certegy also offers an online pre-approval system, where you can apply online before shopping, and you can use it within 60 days! With all of this, Certegy also offers a low monthly fee of only $3.50, making it a great choice for those who want to apply for credit without the steep monthly fees.

In order to apply for Ezi-Pay with Certegy, all you need is your I.D. from an American residency, your proof of employment, and some details on your assets and liabilities! This makes it even easier to apply for credit! Certegy also welcomers pensioners, as it accepts valid pension cards. This makes Certegy a great pick for those that are retired or veterans.

Using Certegy can help build up your credit, and as you pay off your credit, you will see your credit score rise with every purchase! This is helpful for those with little or no credit, as it can help give you a change to built it little by little, by paying off purchases that you’ve made with the account. Reviews for Certegy have also stated the same, stating especially that it’s helpful for those with a pension system.

The best part about Humm is it’s simplicity. With an easy to understand transaction categorization, with big things being purchases more than 30,000, and little things be those up to 30,000, you’ll be able to have control over your purchases and your finances! Industry Leaders say that this way of catagorizing the transaction is the best way to “ensure simplicity and ease of payment.”

No matter what you decide to buy, big or small, Humm has you covered. With a purchase up to $2,000, you can choose to pay it off in 5 or 10 “slices”or payments, every week or fortnight. With a purchase up to $10,000, however, you can repay all the way up to 60 months, making it easy to schedule a payment system that works for you!

Humm is available in store as well as online! Available with retailers such as Michael Hill and Betta Home Living, you have access to anything you may need, with the credit you need to buy it! This makes it much easier to afford everyday purchases, with a repayment system that works with you instead of against you! They even have a full list of stores to help you find the perfect place to shop!

Reviews for Certegy Humm also states that many industry leaders are “happy with the service they received”, while also raving about the pension programs that Humm offers. Being that Humm offers a very easy to use credit system, great for those with existing credit or those just starting out, it’s easy to see why Humm has such great reviews!  On top of that, many people also are happy about the very easy to use app that Humm offers.

This app is available on Apple and Android smartphones, and gives you access to your account on the go! You can do everything from pay your balance, to check the remaining credit you have, all from your phone.

Looking to start a retail business? You can now sell with Humm too! Humm, along with it’s other services, offers business owners 0 refund fees, making it easier to get off the ground, as well as an increase of up to 30% in sales, and up to an 80% repurchase rate, giving your business the attention it deserves!

Have an online store, in-store, or a mix of both? No problem, because Humm is very flexible, working with your business’ needs. With an in-store establishment, you’ll be able to link up your businesses finances into one system focused on helping you as a small business owner! If online is more your style, you’ll find the same care and attention online that you’ll find in-store!

Humm also boasts being able to work with many different online store platforms, such as Shopify and cubecart, and even supports in store retailers, giving you the flexibility you need to have your business take off and unlock it’s potential!

Looking to close your account? No problem! With Humm, you can cancel your account at any time upon paying any outstanding balances. No there’s no need to worry about lengthy contracts for years on end, with Humm, you can close your account when you need!

Humm categorizes its transactions into 2 main categories, big things and little things. With little things, you can pay a small monthly fee of $8, and you can pay it back in 5 or 10 installments, weekly or every fortnight!

For big things, which is categorized as purchases that are more than $30,000. These transactions can be paid off anywhere from 6 to 60 months, with the same $8 monthly fee of the little things transactions, and a payment schedule that works with your schedule! Certegy’s Humm has certainly come a long way to becoming the shopping credit service it is today. With Humm, you can unlock your true purchasing power! Overall, Humm will definitely help you not only keep track of your finances, whether you’re a business owner or use a pension system, you’ll find that Humm not only works great, but is also easy to understand compared to other credit services, with long and complicated contracts.

What Is Certegy Check Verification?

Check verification is a very important tool in today’s hustle and bustle society. When it’s hard to keep track of your finances, it’s also easy to lose track of where you’re money is going, giving criminals a chance to swipe some of your hard earned cash. With Certegy check verification however, you’ll be able to stay on top of your checks, and in turn, your finances, making it easier to avoid financial risks like fraud and identity theft.

Certegy Check Verification will verify for you if your check is valid or not, and help you in the process. Thousands of businesses around the world today accept checks, and with Certegy it makes it harder for criminals to get ahold of your data. One of the ways they do this is with check verification. With Certegy check verification, however, you’ll be able to stop this in its tracks.

But how exactly does Certegy do it’s check verification? Firstly, they check to see if the name on the casher’s ID matches the name that is on the check. This ensure that the check is going to the person that it is intended for. This is very important, as a lot of criminals today will a fake ID that matches the name of the check, however with Certegy, the fake ID will be checked, and you can rest assured no one can get ahold of your hard earned money. For example, a check for $300 under a different name than what is on the ID of the cashier will be declined, due to this security measure.

After that step, they then check to make sure that the check’s bank account number is valid, as well as making sure that the check is a valid check. They do this by making sure that the cehec is from an actual financial institution, and not a fraudulent check (which is why you should always buy checks from your bank, instead of from any other 3rd party seller.) For example, a $500 check may be declined if Certegy finds that the check is fraudulent, or from a non-official seller. This helps keep the checks that Certegy sees valid, and your finances safe and secure at last!

One of the most important things to keep an eye on in today’s busy environment is your finances. Without a close look out for them, you could find yourself to be the victim of a bounced check after already providing a service, or, even worse, a victim of identity theft! In order to make sure you have a tight lease on your finances is by using Certegy Check Verification. With Certegy Check Verification, you’ll be able to rest easy knowing your checks, and your finances, are secure.

With Certegy, one of the many services that they offer is a check transaction search, where you can search for a check that has been recently declined. This way, you’ll be able to keep track of your finances and figure out what the reason was for your check bouncing, and Certegy is there to help you through every step of the way! Wondering why a check you recently tried to cash in was declined? Certegy has got you covered! With their search engine, you can find out why it bounced and take the proper steps to prevent it from happening in the future; strengthening your overall financial health!

Another way that check verification can help you is by giving you peace of mind. Nowadays, it’s hard to keep track of all your finances, that’s why, with Certegy Check Verification, you can rest easy knowing that your checks, and your money are secure. Who wants to lay awake at night wondering if their money is secure? Not with Certegy services. With so many services, such as annual credit reporting, check verification, and even a declined check search, in order to identify the reasoning behind your check being declined, you can rest assured knowing that your finances are safe!

Certegy also has a good reputation of working with those with pension programs! Industry Leaders who have used Certegy to check pension checks have stated that it’s “simple and easy to use.” This shows us that Certegy, among its many services, is also skilled at helping those with pension checks, making it easier than ever to keep your money secure!

Want to know where your checks are coming from? That’s exactly what Check Verification is for! With Certegy Check Verification, you’ll be able to know that your checks are coming from a reputable source, and you’ll be able to spend away knowing that your check won’t bounce with Certegy quality assurance, protecting you and your checks, and in turn, your finances. No more worrying about whether or not your checks are being used by unverified sources with Certegy, as Certegy checks every check you cash to make sure you don’t run into that problem! And with an annual credit score, you’ll be able to keep an very close eye on your finances, keeping them healthy and happy!

Looking for a store location near you? Certegy has locations throughout the United States,and will be able to help you with any check verification, or even cash checking services! With Certegy cash checking services, you’ll be able to get an advance on your paycheck for 100 or even 1000, whatever your paycheck may be! Many cash checking services don’t offer the great online services that Certegy offers, which is why Certegy is the number 1 choice for those who want an all in one check verifier! Industry leaders say that Certegy is one of the best cash checking services, for its “simplicity and great customer service!”

Nowadays, check verification is very important, especially for those who find themselves using on an everyday basis. With Certegy check verification, you’ll be able to rest easy knowing that your checks and your finances are secure with Certegy! In the United States, it’s harder than ever to keep track of your finances. That’s why it’s so important to use services like Certegy, to ensure that your money is safe and secure.

What Does Certegy Look For?

Knowing where your checks are coming from is a very important thing to know, and with today’s anonymous internet-based society, it’s now more important than ever to know where your checks are coming from, as they may be from a bank account with insufficient funds as part of a scam, or an even worse scam- be fraudulent. Certegy has been providing check authorization and check cashing services to several well-known businesses internationally, and their mission as a business is to protect from fraud and other illegal activity, by protecting customers from thieves using their account for illegal activities, such as theft. But what exactly does Certegy look for?

Firstly, they make sure any and all checks that you deposit or withdraw are valid. That meaning, they won’t bounce. Having a check for $500 come in, just to have it bounce 2 days later isn’t exactly fun. But Certegy offers a service that ensures the safety of both your checks and your finances! At Certegy, the number 1 priority is their customers, so you can rest assured knowing that Certegy will protect your finances. They also offer a few tips to ensure valid activity on their checking account when using checks, such as never ordering from strange websites or from salesmen over the phone, as it most likely will be a scam. Instead, order them from your bank or financial institution, as they will be valid then. But when it comes to keeping your online data secure, Certegy has you covered, as it offers services such as free annual reports, which, under the FACT act, is able to give users a free credit report. which can help your overall financial health.

What Certegy offers is a check verification service. This service offers customers to know the validity and authenticity of their checks, and help them with said process. This service is extremely important for those who use checks often, especially if you don’t want your checks to bounce. For example, if you had a check for $100, and you deposited it, only to find $400 missing from your account from a deposit you didn’t make, chances are you’re the victim of a fraudulent check, and they got your bank account information from the deposit you made in your account from their fraudulent check, exposing you to their criminal activity. Industry leaders say that, in order to ensure your checks are valid, it’s important to use a check verification service that will “ensure the safety of your finances, and ensure the validity of your checks.”

Another thing that Certegy offers is a declined check lookup. With this service, all you need to do is enter your reference number, or the transaction date, check number, and the amount in the transaction. With this service, you’ll be able to find out why your check was declined, and take the necessary steps to prevent it from happening in the future. This makes it easier than ever to keep on top of your finances, which is peace of mind that anyone would love!

Looking for a Certegy near you? They have a check cashing locator, which can help locate one of Certegy stores, where you can use one of their many check cashing services! At an In-store location, you have access to all of Certegy’s great services, including helping turn your paycheck into cash without the use of a bank account, which can be helpful for those who find themselves without any sort of bank account.

Another thing that Certegy looks for is whether or not the check you have has been altered in anyway. Commonly, industry leaders recommend that you “write in dark blue or black ink, and to not use too wide of spaces” This is due to the difficulty or altering dark ink. They also suggest to use a writing that couldn’t be easily altered to make a different number on the check, as this can, logically, lead to fraud and other criminal activity with your money. Knowing this, Certegy makes sure that all checks are valid by checking for this. For example, a check with a number 1 could, depending on one’s handwriting, be turned into a 7, causing the check to then be invalid, as it displays a number that doesn’t represent what the original writer intended, which can lead to some very unwanted situations that no one wants to be in.

Wondering if you need a check verification service? Keep in mind that, in today’s society, with technology and the way we send money advancing more and more, it’s becoming more and more important to secure your finances. Check verification is a way to do this. By verifying a check, Certegy can give you peace of mind knowing that your check is real. Because nothing is worse than a check that turns out to take money from you instead of give you any!

With Certegy, keeping track of your finances has never been easier! Of course, everyone wants to know what’s going on when it comes to their finances. But with so many reports of credit fraud, identity theft, and other fraudulent crimes, it’s hard to stay confident. By using any of the many services that Certegy offers, such as annual credit reporting, check verification, or even looking up why a check was declined, you’ll be able to secure your finances better and stay in control of them!

Lastly, the main thing that Certegy looks out for are checks that are cashed by someone other than you. In retail stores such as Walmart, it’s easy for one to turn in a fraudulent check, without the help of Certegy. The first thing that is checked is that the check and the person who is cashing in the check match, meaning that the only person who can cash in that hard earned check is you, making it easier than ever to cash in checks with confidence!

Overall, Certegy offers many services that can help keep you safe with your finances. And with all the great services that they offer, it’s clear that Certegy looks for anything that could put your checks or your finances at risk. With the check verification that Certegy offers, you can rest assured knowing that your checks and your finances are safe. Use Certegy, and know your checks are secure!

Does Walmart Use Certegy?

With Walmart becoming a bigger and bigger retail chain, it’s important to know what can be used there as payment and what can’t be used. However, a few Walmarts nationwide do still use Certegy to verify any checks, which helps with the overall safety and security of both your checks and your finances. Using a check a Walmart has many benefits, including even $20 cashback on personal checks!

While Walmart does accept checks, there are limits and fees that apply to each transaction. Following these rules is very important to have a successful transaction. There are just 3 simple steps that can ensure a smooth process, and get you closer to shopping!

Firstly, you must have a government issued form of Identification. This means that you can use a military license, a state issued driver’s license, or even a U.S. Passport. Remember though, that you will not be able to cash a check with this form of identification. This is to help ensure that the person who is cashing the check is the person that the check is intended for. Being the first step, this step is most important to ensure that your check is valid, and is usually the first sign that your check is valid.

Secondly, the name on the check must match the name that is on the ID. In order to prevent fraud, Walmart only accepts checks that have the same name on the ID as the check, meaning that if your name is on the ID, but not on the check, then you won’t be able to use the check. However, with this rule there is an exception. An employee can actually use a business check at Walmart, however Walmart may need the employee ID to verify that it is indeed for them. Besides this scenario, however, your name will have to match both the check and the ID that you are using to cash the check.

Thirdly, your check must pass a verification scan. This is where Certegy comes in. With Certegy, Walmart verifies your check, and you’re good to go! How Certegy scans the check is by running the check’s info, like it’s routing number, the bank account number the check is from, as well as identifying information. Identifying information can be anything from your license number, to your ID number. This process overall helps assess the chance that your check will be returned, or if it’s fraudulent or not, which is important for your financial safety.

Following these steps will allow you to cash in a check at Walmart, which can be helpful for those who require cash instead of a check, which is more commonly accepted in stores nowadays. Of course, this wouldn’t be possible without Certegy top-quality check verification, without it, you lose the sense of security and peace of mind knowing that your checks, and your money are both secure.

Also, using a system like this can be proven to be safer than using alternative methods to cash a check without this check identifying service. With this service, you’ll be able to have peace of mind knowing that no one is using your bank account or other financial information against you in criminal activity. Keeping you and your finances safe is what Certegy does best! And while there are alternatives to Certegy, there is no alternative to security. Making sure that your money is safe is a given that everyone needs. And with Certegy, you’ll know that you’re getting quality service, as well as that peace of mind!

On top of this service, Walmart also offers $20 cashback when using a personal check, making it even easier to shop at Walmart! Before you write the check, make sure that cashback is available by asking the cashier, and if it is, and your check is accepted, you get $20 cashback like that! With no maximum on the amount of checks you can write a day, and personal checks being able to be transferred to your electronic bank account within 1 to 2 business days, and sometimes as quickly as the same day even, it’s clear that Walmart has your back with Certegy check verification services! Also, check with Walmart’s savings catcher to find any other savings to have!

Keeping your money secure is very important. That’s why using check verification services such as Certegy is such a crucial player in your financial health. With Certegy, you can rest easy knowing that your checks, and your money, are safe and valid. No one bounced or invalid checks if you use Certegy check verification process! And you’ll be able to focus on other things (Like Walmart’s $20 cashback when using a personal check!)

Reviews for Certegy also show us the quality experience you’ll have using their services! Being able to work with Pension checks, many say that Certegy “easy to use with pension checks”, and also it able to help people not have their checks be declined! This makes it easier for you to shop at your favorite stores with peace of mind, and focus on what matters most; keeping your finances safe and secure! Industry Leaders say that, with Certegy, pension checks have “never been easier to process”, with the check verification process being very simple and quick!

How does Certegy verify your check to ensure that it’s valid? Firstly, they check it’s routing number to ensure that it matches the bank account that the check is associated with to ensure validity. Then, they just other data, such as who is cashing the check, and what their relation to the check’s bank account number is. Finally, they confirm, if it is a valid check, that it is valid and allows Walmart to give you cash to spend on great stuff! (Including that $20 cashback!) Overall, using Vertegy at Walmart can greatly reduce the risk of fraudulent checks or checks bouncing, leaving you happy and able to keep shopping, knowing that the checks you deposited are valid! Use Certegy today, and be able to use checks with confidence and ease! And with all the services they offer, such as free annual credit reports, you’ll be in control of your finances at last! It’s no wonder industry leaders reccomend Certegy for all it’s “simplicity and speed”!

Does Certegy Do Credit Checks?

Your credit score is a very important number in today;’s world. It can attract or deter credit card companies and other lenders, such as mortgages and loans, and overall determine your financial health. But how do we learn what are credit score even is? With Certegy, you can get an in-depth credit report, telling you your credit score and much more!

Certegy, among many other services, offers what are called credit checks, which checks your credit score for you. Now, with today’s financial world, it’s very important to know your credit score regularly, as it could be changing constantly, and a low credit score can be very debilitating. But with Certegy, you’ll be able to have the knowledge you need to improve your financial and credit health, making life a whole lot easier, especially if you’re planning on buying a house or financing a car. In general, having a low credit score can greatly hurt you in more ways than one, making it even more important to check your credit score regularly.

One of the ways it can hurt you is by making it impossible to rent a home. If you don’t know your credit score is low, then how are you supposed to know why you were declined for a mortgage? Another way it can hurt you is be limiting your loan power. With a high credit score, one can get a relatively low interest rate on a loan, with a long payback period. However, if you have a low credit score, you can find that your interest rate will be much higher than those with a higher credit score, and as much shorter payback period as well. With a credit score, not only will you have the knowledge of where you stand credit-wise, but you will then be able to take the proper steps to improve your overall credit health, all with the help of Certegys annual credit report, that will give you all of the information that you need.

Another way that having low credit can hurt you is by hurting your chances of financing a car. Having a low credit score can make it almost impossible to finance a car, only offering high interest rates and a short pay period. However, if your credit score is high, you’ll be able to get a car at a great interest rate, and have a lot more freedom in choosing your payment schedule when compared to those with lower credit scores. Overall, having a high credit score can be very beneficial in the long run, and those who regularly check their credit score have been proved to have much higher credit scores, giving them access to many more benefits from loaners, than those who don’t check their credit score regularly, or at all.

With Certegy Credit Checks, you’ll not only be able to learn your credit score, but also be able to learn how to raise your score, in order to be more appealing to lenders, which if you’re planning on buying a house or financing a car, is very important. That’s why it’s more important than ever to check your credit score often, and at least once a year, to ensure financial health and security. With Certegy, you have access to annual credit reports, that give you an in-depth look into what your credit looks like. With one industry leader stating that the report is both “in-depth and easy to read, making knowing your credit even easier.” , it’s no wonder why Certegy is chosen above all other credit reports!

Wondering what your credit score means? Credit scores are rated on a 360 to 850 basis, with 360 being the worst credit score possible, and 850 being the best credit score possible. Typically, the average american’s credit score is around 500, meaning if you have a credit score of 500 or more, you’ll typically find relatively low interest rates. Of course, the higher the number, the more appealing you will be to potential lenders, and if you find yourself with a lower score, you can always increase it by getting annual credit reporting, giving you the knowledge you need to make the appropriate changes to better your financial health. While credit reporting itself won’t improve your score, getting the knowledge you need to make different financial choices definitely will, and you’ll see your score get higher with the more credit reports you get, giving you the knowledge that you need to improve it!

Wondering if Certegy has any store locations? Well, with Certegy Cash checking offices that are located throughout the United States, you’ll be able to do all of your cash-checking business in one stop, on top of being able to check your credit online with Certegy annual credit report. Never worry about your cash-checking needs again with Certegy! Certegy offers all the standard cash-checking services, such as paycheck processing where you can get a payment advanced based on how much you earned on your work paycheck.

Thanks to the Fair Credit Reporting Act, anyone can have access to this great feature! The Fair Credit reporting act states that anyone has access to a free credit report stating the overall credit score and in-depth report of their overall finances, as well as a look into how potential lenders see your profile. Due to this, anyone can improve their financial health with a simple credit report! With Certegy, you’ll get this report and much more, including access to one of Certegys many great locations throughout the United States, and a check verification service, to keep your checks secure!

Overall, Certegy annual credit report will help you achieve your financial goals. With their in depth 12 month report, you’ll be able to see what areas there are to work on! Have trouble keeping track of your credit, or maybe you are new to credit and have just started building it? No worries with Certegy annual credit report! You’ll be able to improve your financial health, and rest assured knowing that your finances are safe and secure and improving everyday with the right financial choices! Use Certegy annual credit report and never have to worry about bad credit again! Industry Leaders are stating that getting a credit check from Certegy will “ensure not only check security, but overall financial security.”

Four Companies That Know More About Your Banking Than You May Know

As important as it is to maintain a healthy financial status, some events in life can catch an individual off-guard. Unforeseen expenses, bad luck with investments, and becoming a victim of fraud are just three of the many ways that someone with a healthy financial history can be left with financial burden. What many are unaware of, though, is that more than just your credit can take a hit at times like this.

To preface this, one must be aware of a company called ChexSystems, a division of Fidelity National Information Services (FiS) and their eFunds subsidiary. ChexSystems is a consumer reporting agency, or CRA, which acts in a similar fashion to a credit reporting agency like Equifax, TransUnion, or Experian. By partnering with 80% of the banks in America, ChexSystems creates a profile detailing the personal banking history of an individual and generates a QualiFile score – effectively a personal banking version of a credit score. This QualiFile score, often called a ChexSystems Score to avoid confusion, is created through surveying the previous five years of activity in a bank account. Anything negative, such as foreclosed accounts, returned checks (bounced checks), flagged ATM behaviour, or replaced cards, defines the score you receive, somewhere between 100 and 899. Parts of this information can only be removed if it is determined to be inaccurate following an investigation requested by a customer.

As per the Fair Credit Reporting Act passed in 1970, citizens are entitled to a free copy of their personal report from a CRA (ChexSystems included) once every 12 months, or within 60 days of being turned down for a bank account. The score between 100 and 899, though, is only available by request from ChexSystems and costs a little over $10. Keep in mind that excessive requests for a copy of a report or score can be noted in the ChexSystems database, affecting an individual’s final score. As of 2012, a score of 580 or below is considered to be an ‘averse’ risk to a bank, 545 or below being a moderate risk, and 525 or below being an aggressive risk. While the final decision of opening an account belongs to a bank employee, these scores establish a first-impression that weighs heavily on the process.

Until late 2015, ChexSystems was a highly controversial system due to the harsh restrictions it frequently led to. The system was and still is notoriously difficult to escape from, and previously held on to banking information for up to 10 years. The system was considered so critical and influential that a single bounced check or a single dip into overdraft would deny a potential customer a bank account. This ultimately led to millions of Americans joining a group coined the “unbanked”, or Americans who are forced to use expensive bank account alternatives. In 2017, the FDIC published a report estimating that 6.5% of all American households were unbanked, with an additional 18.7% were ‘underbanked’, or individuals who were forced to use services such as payday loans, non-bank check cashing, or refund anticipation loans. ChexSystems is still so criticised that a simple internet search of the company will return a variety of ways to “get out of ChexSystems”, and a list of banks that do not use ChexSystems. Johnathan Mintz, commissioner of New York City’s Department of Consumer Affairs, told the New York Times that there have been “too many experiences where even banks that have offered to be flexible […] find their own internal risk management systems mean that their hands are tied”. This controversy caused multiple banks, such as Santander, Capital One, and Citibank, to announce that they would relax their ChexSystem policies.  This would relax the guidelines concerning what would be reported to ChexSystems, allowing for the average QualiFile score to rise and for millions to be eligible for a standard bank account.

An alternative to ChexSystems is Early Warning Services, a CRA system often used by banks as a second opinion when evaluating a potential account holder. Early Warning Services, commonly abbreviated as EWS, is owned by some of the largest banks in the country including Bank of America, BB&T, JPMorgan Chase, PNC, Wells Fargo, and Capital One. Instead of trying to challenge the well-established ChexSystems, EWS and the services they offer function as a second line of defence for banks. Rather than having a single system evaluate a customer, EWS provides banks with a more in depth and reliable evaluation, highlighting potential abnormalities that would bring a QualiFile score down.

To be clear, though, EWS itself is not actually a service. Rather, it offers a suite of services for banks ranging from ChexSystem-like assessments, to internet or telephone authentication services, to check deposit services. While ChexSystems focuses solely on the banking reputation of an individual, EWS records the history of an individual in addition to helping prevent fraud with their catalogue of verification software. EWS also designed the Zelle Network, a rival to PayPal’s Venmo, adding a peer-to-peer payment service to their portfolio.

While EWS’s services are largely well received, the Zelle service has recently become controversial as users across America have fallen victim to scam artists using the app. Dozens of users reported losing their money after attempting to buy items on sites like Craigslist only to have the seller accept the payment, shut down the receiving account, and cease all contact. After filing their complaints, Zelle refused to conduct any investigations because the scammed individuals initiated the payment. Zelle’s customer service would simply reiterate that Zelle is meant to be used to transfer money between people who know each other, rather than an individual and a stranger on Craigslist.

A third, much less common system that could be consulted when trying to open a bank account is the TeleCheck system. TeleCheck is a division of the company First Data that offers check validation services to any businesses wishing to accept checks as methods of payment. Rather than using banking or credit history to develop a profile for an individual, TeleCheck records and references the individual’s check writing history in order to determine potential risk. Any checks that are cleared in the system contribute to a positive profile, while any returned checks, or checks that ‘bounce’, contribute to a negative profile. Furthermore, any checks that are initially cleared but then are found to bounce later can be reported to TeleCheck, contributing to a negative profile.

The TeleCheck system is put to use when a cashier receives a check and either scans or manually enters it in to the TeleCheck system. The check information is then cross referenced with the customer’s records, as well as a comprehensive system of values that can indicate a possibly attempt at fraud or forgery. These values include the stores, items, and amounts commonly associated with attempts at fraud, among ‘hundreds of other values’, according to the TeleCheck website. If the check clears the system, the transaction is recorded and the customer has to sign a receipt, but if TeleCheck declines the check, a “code 3” will appear to warn the cashier of a risk.

The most common issue with TeleCheck is that the system is based solely off of an individual’s history of payment with checks. If there is no history, or if the history is sparse, odds are high that the check will be declined regardless of authenticity. This, along with TeleCheck’s system of items and stores frequently visited by frauds, leads to rare purchases like televisions or smartphones being rejected. The only checks that TeleCheck does not verify are government or international checks.

The major issue with TeleCheck’s system is the history they have, namely the $3.5 million fine stemming from the company breaching the Fair Credit Reporting Act mentioned earlier. This fine originates from a process called information furnishing, which is when a company provides customer information they have gathered to another company for various reasons. Many CRAs share information with one another or with banks that request this information for customer profiles.

TeleCheck’s parent organization, First Data, operates a sister company to TeleCheck named TRS Recovery Services which facilitates debt collection and furnishes TeleCheck with additional information for their fraud prevention system. In mid-2013, the Federal Trade Commission, or FTC, began an initiative to investigate the practices of information furnishing companies, making sure they are following the guidelines of the FCRA. In January of 2014, the federal court found that TRS Recovery Services was guilty of breaching the Furnisher Rule of the FCRA, which states that any service furnishing a CRA with consumer information must ensure that the provided information is accurate and complete. Furthermore, both TRS and TeleCheck were found guilty of inaction following customer disputes regarding their TeleCheck reports, breaching the FCRA clause that any information reported to be inaccurate must be promptly investigated and corrected. The severity of the situation was outlined by the Federal Trade Commission themselves by saying;

If CRAs like TeleCheck provide merchants with inaccurate information, those merchants may wrongly deny consumers the ability to buy even the most essential items, like food and medicine. The FCRA gives consumers the right to dispute and correct inaccurate information.

Jessica Rich, Director of FTC’s Bureau of Consumer Protection

Since the fine, TeleCheck and TRS Recovery Services have presumably changed their practices to adhere to the FCRA guidelines as no further fines have been issued. They have also become far more transparent about the process in which checks are judged and scanned.

Another information furnishing company to be aware of is Certegy, a CRA that specializes in check validation and clearing house services. A clearing house, often associated with commodity trading but can be used in the clearing of checks, is a service that acts as a middle-man for transactions between two entities. After their system approves a check, which functions in a way similar to TeleCheck’s, Certegy immediately debits the customer’s bank account and credits the business. This allows for a much quicker exchange of funds, benefiting both parties involved. Certegy also provides services for online or mobile payments, and a service that holds and cashes groups of installment checks (checks to be cashed at various future dates).

Certegy and TeleCheck are surprisingly similar though. Not only are both companies criticised for their frequent rejection of valid checks, they both received $3.5 million fines around the same time. Certegy was charged in August 2013, a few months prior to TeleCheck, for similar reasons. Certegy was fined for the failure to ensure accuracy of the customer information in their system, as well as the failure to have a written, implemented procedure governing the accuracy and integrity of any information furnished to another CRA. Certegy was also fined for their convoluted and often overly demanding process required for a customer to dispute or receive their yearly report.

Certegy’s troubled past extends further though, with another incident closely following their acquisition by Fidelity National Information Services (FiS) in 2006. Certegy suffered a major data breach in June of 2007 resulting in a leak of data for, what the company thought was, 2.3 million customers. The following July, just a month later, Certegy announced that the number of affected customers was closer to 8.5 million and that a lawsuit would be settled for those in question. The leak happened when William Sullivan, an employee of Certegy at the time, downloaded customer information and sold it to someone who then shared it with various companies. Sullivan, who was promptly fired upon his discovery, was sentenced to 57 months in prison and was ordered to pay nearly $4 million in restitution.

On August 31st, 2018, FiS sold the company to Variant Equity Advisors, an investment firm that specializes in facilitating business transactions. The young firm, founded in August 2017, also owns Curb, a company that specializes in payments for taxis and for-hire ride shares, and Coach USA, a company that operates a variety of coach bus lines.

If you are looking to open a new bank account, it is highly likely that your QualiFile score and your EWS report will be consulted, while some banks may use your TeleCheck profile as a third reference. This is the point at which ‘life can happen’, as a low score or a controversial report can prevent a potential customer from opening a standard account, leaving them with only a few alternative options.

Second chance banks are institutions or divisions that are directed towards individuals who are caught in a situation with low credit, low QualiFile scores, or a troublesome EWS report. Believe it or not, being ‘blacklisted’ by ChexSystems is somewhat common. The most common second chance banks come in the form of credit unions or smaller, more local banks. Some larger banks, such as Wells Fargo, Radius, Memory Bank, PNC, Woodforest, and BBVA, offer specialized accounts from a second chance banking division. While credit unions and smaller banks may not have much infrastructure, these larger banks allow second chance bank account owners to recover their score while still having access to ATMs and branches across the country. For anyone willing to part with brick-and-mortar locations, GoBank is a completely digital bank that offers second chance bank accounts that can be accessed through your phone or computer, or at other ATMs for a fee.

Almost all of these accounts, from big banks or small credit unions, hold caveats with their accounts, though. With any sort of second chance banking account, conditions such as minimum balances, high rates of interest, or a lack of a physical bank card exist and are how the company safeguards themselves. Some banks even utilize pre-paid debit cards for their accounts, which in turn can help their customers practice healthy spending habits. Proving your reliability often results in temporarily reduced restrictions, though, such as in Wells Fargo’s “Opportunity Checkings Account” which waives the $10 monthly fee so long as at least $500 is deposited through direct deposit every month.

Though not always associated with ChexSystems, second chance bank accounts provide excellent ways to begin raising either your QualiFile score, or enhancing your EWS report. Depending on the bank providing the account, a steady increase in either of these systems shows larger banks that an individual has changed their banking habits. Remember, the final decision to open a bank account is made by the bank employee and their perception of the risk factor involved. Staying updated on personal financial standing with various CRA reports can help identify mistakes and prevent any future banking issues.

CAN CHECKSYSTEMS FREEZE MY ACCOUNT?

Freezing of accounts is a serious issue and some consumers are neither aware of the circumstances that could result in this action, nor the involvement of Chexsystems in it. Well, as a consumer, you need to be informed of the process that leads up to the actual freezing of the account so you can tackle it better.

Some other Consumer Reporting Agencies (CRA)  provide reports on both the positive and negative aspect of your financial status, but with Chexsystems, the data provided is only on the negative. It is with this report that most banks make a decision on a consumers financial stability and may deny opening of accounts and other financial services based on the negatives.

How does Chexsystems relate with freezing my Accounts?

Chexsystems is a data compilation service dealing only with negative financial issues a consumer may have over the span of 5 years typically. It compiles this database into reports and alerts the banks on updates on your accounts. This now sets off the banks to pay attention and sort out the data  it provides, using it to make an informed decision about your financial capability, obligations and performance.

Can Chexsystems directly freeze my account?

The answer is No. Its jurisdiction does not cover taking action on a consumer’s account, it can only provide data in report form and then the banks make decisions about that consumer.

Is Chexsystems important?

Yes, it is. Most banks in the US rely heavily on the data it provides. ‘More than 80% of banks and credit unions use consumer reports from Chexsystems and other agencies to help them decide about bank applicants’ says Nerdwallet . Hence, because banks use this report, consumers need to pay more attention to their standing with Chexsystems.

What data in Chexsystems report can cause the freezing of a consumer’s account?

Any negative financial data in a consumer’s account is instantly placed on Chexsystems radar. Examples are:

1. Suspected Fraud or Identity Theft: When a consumer’s account is suspected of fraudulent activities or if a consumer bcomes aware of an identity theft situation, the consumer may decide to initiate security lockdown and this will be captured by the Chexsystems.

2. Bounced Checks and Overdrafts: An account that has activities of bounced checks and overdrafts that are not repaid within the stipulated period can lead to freezing of the said account.  

3. Accounts frozen for cause (fraud or bad checks): Consumers accounts that have a history of bad checks within a short period catches the attention of the Chexsystems, and the banks, acting on this report, may decide to freeze the account to better rectify,understand and monitor that account.

4. Abuse on debit cards or ATM: When a consumer’s account debit card has a history of misuse, it pops up on Chexystems radar and this may cause the bank to freeze your account, sometimes so you can come in person and they confirm that it really is the consumer and not someone else using the account.

5. Excessive loss of Checks or debit cards: When a consumer is in constant need of a new debit card or can’t find checks, it causes suspicion and banKS may freeze that account to flush the person out.

From the above examples, one can see that while the use of Chexsystems may seem like a way to poke holes at a consumer’s financial inadequacy, the same report is also used to protect the interest of the consumer and help them monitor their financial standing.

How do I access Chexsystems report?

Chexsystems reports are designed in such a way that the consumers have the right to retrieve a free Chexsystems report annually and dispute untrue negative information provided. Its governing Act,  the Fair Credit Reporting Act (FCRA)  aims to ‘promote the accuracy, fairness, and privacy of information in the files of the consumer reporting agencies’.

What should consumers do when their account is frozen?

At this point, all the information provided earlier comes together.

1. Get that Chexsystems report: Consumers need to know what data is contained in their Chexsytems file. Apply for the free annual report at  consumer disclosure report.  

2. Dispute any discrepancies found in the report as it could be responsible for the freezing of the consumers account.

3. If the data contained is true, go over to any physical bank office closest and discuss how to work or pay off any unpaid overdrafts or other financial obligations.

4. When the obligations are settled, ask for a receipt and request creditors to file and update with Chexsystems.This will help them see that even though you had financial issues, they were cleared off. This is important for future account opening or diagnosis by the banks.

5. Get a Second Chance account. This gives you somewhere to park your money while waiting for the account to be cleared. Also, if there were previous unpaid overdrafts in a consumer’s main account, the second chance account can help the consumer get back on good standing with Chexsystems as long as it is maintained responsibly.

6. Wait for the 5 year period frame of the Chexystems to expire. It will automatically ignore those financial anomalies before the 5 year period.

Chexsystmes seems to work, hence, why Bank of America and some other banks, use it to make informed decisions.

I hope this article is helpful in enlightening you on Chexsystems and their influence over banks in freezing an account.

ChexSystems: The Little Known Database Banks Use for Screening

Most people are aware of credit ratings; that they are a measurement of how a person may handle their financial commitments based on previous credit behaviors. It’s widely understood that lending services use credit scores to assess various factors when handing out financial loans. They also know the importance of a good credit score when applying for those financial services.

However, what many don’t realize, is how you manage your savings and chequing transactions can negatively affect your standing at a financial institution. Also, if you’re account consistently has negative banking activities, your bank can report that information to consumer reporting agencies, like ChexSystems, that are designed to track such events. Just like credit scores, your debit score will follow you. ChexSystems shares their information with all the banks that use their service. If someone is rejected by one bank due to a poor ChexSystem score, chances are good they will also be dismissed at another bank for the same reason.

People often don’t know they have a poor “debit score” until they apply for an account at a new financial institution and are rejected. Many are declined the option to open a simple chequing account if they have a poor debit, or ChexSystems score. In the most severe cases, people who have been blacklisted by the consumer reporting agency, ChexSystems, are unable to open any kind of bank account and are deemed “unbankable.”

Who owns ChexSystems?

Fidelity National Information Services (FIS) is the owner of ChexSystems. FIS acquired ChexSystems in 2007 with the purchase of eFunds for a cool 1.8 billion dollars. It is regulated by the US federal government legislated Fair Credit Reporting Act (FCRA). They are a global leader of financial technology solutions.

Why do Banks Use ChexSystems?

Fraud protection. Protection against fraud is why ChexSystems is used by 80% of financial institutions in the United States. Losses incurred by fraudulent activity at the personal account level, which is basically loss from bad cheques, cost banks 7 billion dollars in 2016. With potential losses like that, it’s no wonder banks, and credit unions take precautions for even simple chequing accounts. Personal account fraud, resulting in million-dollar-losses, has made headlines across the United States in recent years.

  • In 2010, a Texas resident pled guilty to “defrauding three Texas banks of more than one million dollars.”
  • A man, from Illinois, was sentenced to one year in a federal prison in 2013 for his involvement in a cheque-kiting scheme that totaled up to more than 4.8 million dollars in bad cheques.
  • A cheque kiting ring that cost California banks “at least $15 million” dollars made headlines in 2014, and even landed some individuals on the FBS’s wanted-list.

Applying for a personal chequing account is as enjoyable as renewing your driver’s license but leaves you with writer’s cramp from signing endless mystery forms. Having to make an appointment to get approval from a bank that allows them access to your money may seem silly, but is a requirement in our current, fraud-infested, reality. So, until people stop trying to swindle banks money away from them, the banks will continue to use protective measures, like ChexSystems, when screening new clients.

Account Data is Tracked at ChexSystems

Reports are made to ChexSystems from financial institutions when a chequing or savings account held at their business causes loss, has suspicious activity, or when a new account is being applied for. Only negative transactions are tracked, unlike credit ratings which monitor all credit activity, regardless of its intrinsic value.

What activities are reported to ChexSystems?

Banks report all negative banking activities to ChexSystems. Harmful banking activities can indicate fraudulent or risky banking behavior is occurring within an individual’s account. These warning indicators include:

  • Bounced cheques. Repeatedly writing/depositing cheques that bounce increases the likelihood of risk to the bank and, could be an indication cheque kiting is occurring.
  • Debit/ATM card abuse. One way to be flagged for debit card abuse is to use an ATM to commit fraud. Depositing empty envelopes to withdraw instant cash is fraudulent behavior that will get reported to ChexSystems.
  • Unpaid Overdrafts. Accounts that consistently spend more time in the red than in the black is considered a risky bank practice.
  • Multiple account applications. Several applications to numerous banks in a short time-frame is viewed as suspicious.
  • Accounts closed for cause. Accounts considered “delinquent” can be closed by the banking institution it belongs to without consent from the account holder. If that occurs, the bank will report the information to ChexSystems.

Can ChexSystems affect my credit rating?

No. ChexSystems only tracks negative banking activity and, is used to screen new account applications. The database is not used when processing a loan, or when assessing other credit services. Another difference between credit reporting agencies, like Equifax or TransUnion, and ChexSystems is the CRA’s track both positive and negative activities, while ChexSystems tracks just negative account activities.

However, if a financial services provider requires a loan applicant to open a savings account as part of their credit lending process, ChexSystems will be accessed for that step of the loan application. So, a poor ChexSystems score may indirectly affect an applicant’s loan approval. If the bank cannot approve a new savings account for a loan applicant, they may decline the loan based on that.

Outcomes of ChexSystems Reports

If a financial service company finds your name in the ChexSystems database, it means: within the past five years a report has been made, from a financial institution to the ChexSystems database, that your bank account has been involved in risky banking activities. This information will be included as part of the bank’s overall screening process when determining if a potential client is a risk to their institution. How the banking business will use that information is up to the institution and, varies from bank to bank.

Some institutions, including Bank of America, will consider the severity of the information found in a ChexSystems search and how much time has passed since the reported incident. Clients applying for personal accounts with a history in ChexSystems may not automatically be rejected. But, they may have to accept an account with higher fees and more strict regulations. Two common experiences from having a low score on ChexSystems are:

  • Denied Chequing/Savings Account

In 2012, CNN Money reported “2.3 million people” were denied personal banking accounts they had applied for in 2011. It is unclear if those rejections were determined using ChexSystems data but, the dismissals themselves probably negatively impacted their overall ChexSystem score. Each time an application to open an account is rejected by a financial institution that uses the ChexSystems database, a report is generated, and sent to the consumer reporting company.

  • Second-Chance Account

People with a history of risky bank account management denied approval for a traditional account that might qualify for a “second-chance” bank account. Not all institutions offer the second-chance option, but those that do typically have higher annual fees than their traditional accounts.

Know your ChexSystems Report

Maintaining good credit should include periodic reviews of your credit and ChexSystems scores. Whether or not you’ve had trouble getting approval for opening a bank account in the past, regular monitoring of your ChexSystems activity is a useful tool, even when you’re not working towards improving your score. That way you’ll know what’s on your report and if the information is accurate. Nothing is infallible, and mistakes can occur within the ChexSystems database too. That’s why it’s important to know what’s on your debit report. If an activity has been reported to ChexSystems in error, financial institutions will see you as a risk and may decline your business. Or, subject you to unnecessarily high fees. The sooner the error is found, the quicker it can be resolved. The only way to fix a mistake in the ChexSystems database is by the individual taking the lead to rectify it.

Can I access my ChexSystems report?

Yes. Everyone is eligible for one free ChexSystems report every 12 months. That is a regulated standard set by the Fair Credit Reporting Act (FCRA), consumer reporting agencies are required to follow.

If you’re thinking of opening a new bank account and want a heads up on what the banks are saying about you, simply request your free report using one of ChexSystems report request options. The report will be mailed to you within five business days of ChexSystems receiving your request.

Is requesting a copy of my ChexSystems score free?

No. While a ChexSystems report is free when requested once every 12 months, obtaining your score is not. The cost of getting your ChexSystems score is $10.50. Access to a ChexSystems score requires the applicant to complete a Score Order Form, and submit it via mail or fax.

What do I do if I find a mistake on my report?

Dispute the mistake. Contacting both ChexSystems, and the bank that reported the erroneous activity, is recommended by WalletHub, an online financial resource, to get an error removed. Procedures and tips on how to prepare your information for a dispute can also be found there. On the ChexSystems website, disputes can be submitted using their online portal. How it works is explained in their tutorial Submitting A Dispute.

Avoiding ChexSystems

Finding yourself blacklisted by ChexSystems doesn’t automatically mean you’re unbankable, but it does mean you might have to do some homework in finding a bank willing to work with you. While the majority of banks do rely on ChexSystems as part of their client screening process, there are some that don’t. And, of the 80% of banks in America that use ChexSystems, many don’t rely solely on ChexSystems information for account approvals. They combine ChexSystem data with other factors to create a broader picture that is used to determine if a client is a safe-bet or risk. If you’ve found yourself on the low end of the ChexSystems scale, try out some less-than-traditional banking options.

ChexSystem Free Finances. According to letmebank.com, and lendedu.com some of the best non-ChexSystems banks are:

  • BBVA Compass. The ClearConnect Checking account at BBVA Compass is available throughout the lower 48 States, and applications are available online only. While this bank may not use ChexSystems for screening, they do run credit checks when evaluating new accounts.
  • Chime. Banking for the next generation has arrived with Chime’s uber-laidback appearance and tech-focused banking options. Not for the old-school paper check user, this bank is mostly online and requires clients to have up-to-date mobile devices.
  • Wells Fargo. Founded in 1852, Wells-Fargo has been a main-staple of American banking for over 150 years. Rocked by a recent scandal involving millions of fake accounts being created, Wells-Fargo has rebranded its traditional institution and now offers its Opportunity Checking option for clients who don’t qualify for a standard account. Hmmm, it seems they learned everyone might need a second chance!

Skirt the Issue. Getting around without a bank account isn’t convenient or easy, but it is doable. Ideally, finding a bank that will work with you is the preferred choice, but if time or convenience is an issue consider the following.

  • Money Market Accounts. Often offered by brokerages that don’t run ChexSystems, money market accounts are highly-liquid investment accounts that can be used similarly to a bank account. They usually have high minimum balance requirements and can only be withdrawn from six times per calendar month.
  • Electronic Wallets. PayPal has a host of choices for managing money without needing a traditional banking account. Fees do apply to each transaction. With a PayPal Cash Card, money can be deposited at participating merchants and withdrawn at ATM machines.
  • Prepaid Cards. Easy to get, without a credit check or ChexSystems inquiry, prepaid debit cards are a viable option for those who find themselves in the unbankable category. Bluebird prepaid debit cards have no monthly fees, no transaction fees, and access to an extensive ATM network.

Freezing Out ChexSystems

Getting stuck in a cycle of bad reports hammering your ChexSystems score can feel like an unending vicious loop. Being denied a chequing account will likely be reported to ChexSystems, which may lead that same person to apply for another account at a different bank, who may then be denied again, leading to further decreases in their ChexSystems score. And on and on. Indeed, improving a ChexSystems score seems like an uphill battle. Is there a way to stop the consumer reporting agency from handing out private information about someone’s banking history without their permission?

Yes. Individuals can request a security freeze be placed on their account that will “prohibit a consumer reporting agency from releasing any information in your consumer file without your expressed authorization.”, as stated on the ChexSystems website.

  • To place a security freeze on your ChexSystems account visit their website and input the required information into their online security freeze request. Security freezes do not mean a financial institution will process a new account application without accessing your ChexSystems score. It means that ChexSystems needs to have your expression of consent before they can release your score to a banking business.
  • To lift a security freeze, merely return to the ChexSystems website and follow the instructions to have the freeze lifted. Options include temporary freeze lifting and permanent removal of the security freeze.

Does ChexSystems has a record on you? Can you get a report?

We established already that ChexSystems is a nationwide specialty consumer reporting agency (CRA) under the federal Fair Credit Reporting Act (FCRA). What you might not know is that is used by more than 80% of United States banks and credit unions help in the decision-making process of financial products. ChexSystems’ clients regularly contribute information on closed checking and savings accounts. This means that if a consumer has ever opened a savings or checking account, they have a ChexSystems report also known as a consumer disclosure as ChexSystems refers to them. This agency will provide consumers’ information on the use of their accounts.

ChexSystems puts together a data report that can be used by financial institutions and merchants to help them decide about the denial or approval of the financial products that you have applied for. Under permission from the FCRA, they can obtain financial information and primary functions to help businesses and banks assess risk when opening new accounts.

Vice President of Public Policy, Telecommunications and Fraud at the National Consumers League, John Breyault puts it simply when he says:

[Banks] use ChexSystems for sort of a particular use case, and that’s to find out if you’re a risk to the bank when you open a checking or savings account with them.

John Breyault, Vice President of Public Policy, Telecommunications and Fraud, National Consumers League

 It is important to note that just like other CRAs such as Equifax, Experian, and TransUnion, ChexSystems is allowed to include your name on lists that creditors and insurers use to make prescreened product offers. However, you can opt out of these lists. The only difference between ChexSystems and other CRAs such as Equifax, Experians, and TransUnion is that ChexSystems collects data about how you’ve used past bank accounts instead of how you’ve paid off your debts. Generally, ChexSystems only lists negative information on your report.

As a service-based organization, ChexSystems offer services including account history reports, identity verifications and transaction monitoring to ensure consumers following the appreciate financial laws.

If a consumer applies for any bank account, banks will call upon the services of ChexSystems to check the banking history as well as the data for any risks on the file. If the consumer is rejected from a bank, it means the report from ChexSystems displayed risk factors. 

The information obtained by the banks from ChexSystems is made up of two components which include a risk score and a report. The risk score ranges from 100 to 899 and the higher the consumers score, the better. This shows the consumer is less ‘risky’ and therefore, has a higher chance of being approved.

The report will display items to the bank including unpaid fees, check bounces and any form of suspected fraud, along with any information that makes the consumer a risky customer when it comes to handling their financials.

The report generated by ChexSystems is data banks have reported about a consumer from the past 5 years. The bank will add to the consumer’s file, any overdrafts, fraudulent checks and any for suspicious behavior that could deem them a risky consumer. 

If a consumer has been suspected as a risky consumer and rejected an account with any bank, they will appear in the system for a 5-year period.

However, if the consumer believes they are not at fault, they can request a report from ChexSystems and dispute any claims against their account.

Here are the right steps to take:

  1. Request the report from ChexSystems, this can be done on their website
  2. Review the report and check for any wrong or outdated information
  3. If any errors are found, the account can be disputed, which can also be done via the ChexSystems website
  4. The investigation usually takes around 30 days
  5. Also, ensure ChexSystems contacts the bank who provided the incorrect information to have it removed.

Is there any way around ChexSystems?

ChexSystems provides banks and credit unions with the following:

  1. Risk score: ChexSytems Consumer Scores are based on your banking behavior and they go from 100 to 899. Higher scores show that you are a less risky customer, so the higher score you have, the better.
  2. Report: ChexSystems reports (Consumer Disclosures) show unpaid negative balances (primarily from overdrafts), suspected fraud, checks bounced at retailers, credit enquiries, identifying information (name, social security number, past addresses), public records, consumer-initiated security freezes, and check orders.

You can request for a free report or risk score from the agency, but the most important to a consumer is the report because it gives you a look into why a bank has denied your request. Usually, consumers can get a free report annually. You can request for the report by filling the consumer disclosure for on the ChexSystems official website.

The consumer disclosure is used by banks to determine whether they can grant you a checking or savings account. There are numerous instances where people have been unable to open accounts due to their financial history. This is because banks report to ChexSystems any types of account problems such as bounced checks, fraud, returned checks, insufficient funds, etc. This information remains in your report for up to five years or until the source of the information requests for its removal or until ChexSystems is obligated to remove it under applicable law or policy.

It is important to note that you can dispute a ChexSystems report if there are any discrepancies. You can dispute inaccurate information about you or your financial history with the financial institution that issued the information or with ChexSystems. Dispute investigations with Chexystems can take 30 days or more if information or documentation is submitted in the middle of an investigation.

Being up to date with consumer reports such as ChexSystems reports generated on you makes you financially empowered. ChexSystems reports can prevent you from having a bank account, which means you will be unable to safely store your money, you will be unable to get a free debit card for purchases, and you will be forced to pay high fees for sending and cashing checks.

Being financially empowered by being aware of what’s on your ChexSystems report allows you to dispute any inaccuracies that may be present in your consumer disclosure. You will also be able to prevent discrepancies such as insufficient funds and bounced checks that may negatively affect your financial life.

How to check if ChexSystems has a record on you?

Obtaining a record with ChexSystems can have impacts on a consumer’s reputation with any bank they are looking to start banking with.

In order to ensure ChexSystems doesn’t have a file on record, a consumer can follow some easy steps.

  1. Get Overdraft Protection – this prevents checks for bouncing and if the account is overdrawn.
  2. Check accounts – being mindful of all the bank accounts gives the consumer more information on what might be happening to the account. Online banking is the best option for this.
  3. Check closed accounts – when closing accounts, consumers need to check there are no fees applied to the account once it has been closed.
  4. Communicate with the bank – if a consumer moves addresses, doesn’t turn recurring payments off or has any financial changes, they should alert the bank.
  5. Check with ChexSystems – every 12 months consumers should request a report to ensure all bank accounts are showing no discrepancies
  6. Be educated in the rules and rights – understanding a bank’s policy can help ensure there are no surprises when it comes to ChexSystems.

Can you get a report from ChexSystems? If so, is it free or paid?

ChexSystems does not take wages from a consumer. As a regulated consumer reporting agency (CRA) under the federal Fair Credit Reporting Act (FCRA), ChexSystems offers consumers a free annual report. However, if you need a report for any reason, you are required to pay $10.50 to get your consumer disclosure.

While one might think that incase or a dispute the investigation might be costly, the FCRA mandates that must conduct a free of charge reasonable investigation of your dispute. This means that the consumer can get their consumer disclosure cleared of any inaccuracies free of charge. After complete investigation, ChexSystems does not require payment to remove inaccurate consumer reporting information.

It is also important to note that ChexSystems is not a collection agency and will therefore not contact a consumer as part of an effort to collect debt; neither do they make unsolicited calls to the consumer.

Can ChexSystems force my employer to withhold money from my paycheck?

Yes, it’s called wage garnishment and is a government agency order or court order that requires your employer to withhold a certain amount from your wages and send it to your creditor. Commonly, child support, consumer debt, back taxes, and student loans are sources or wage garnishment. It is important to note that wage garnishment is fully dependent on the state and federal garnishment limits. Wage garnishing explains the process of where a creditor is allowed to take a payment directly from a consumer’s bank account when they owe debt.

ChexSystems are not a collection agency and will not make any contact with a consumer in an effort to collect debt. They will never require payments from a consumer to investigate the consumers reporting history and will not require a payment to remove their record from the data.

The Minnesota based organization, ChexSystems will not garnish a wage from anyone; however, a creditor can have the right to perform this.

If your ChexSystems report has overdrawn accounts or unpaid bank fees, this may be due to wage garnishment. Banks only run credit checks if you apply for credit and they do not search court records to see whether you have judgment against you. However, ChexSystems reports may have information on your banking behavior which shows information such as bankruptcy, unpaid negative balances, bounced checks, etc. Although creditors cannot set off your account after you have filed for bankruptcy, the record will show that you have filed for bankruptcy which severely affects your credit and your chances of opening a new bank account.

However, there are other options that can be used to deal with wage garnishment. You can get a more suitable plan to pay off your debts and ensure that with time, your ChexSystems risk score rises. Debt relief may repair your financial records if it carefully and diligently executed. To ensure that your wages are not garnished, it is important to pay your child support, alimony, back taxes, and student loans on time, so that your ChexSystems report remains clean.

Reported by Bankrate in an article on banking smarter, this year, the J.D. Power 2019 U.S. Retail Banking Satisfaction Study found around 4 percent of consumers have switched banks in the past 12 months, which means the services of ChexSystems is in high demand.  

Greg McBride, CFA, Bankrate chief financial analyst, suggests consumers need to be smart about their banking choices.

The marketplace is constantly changing with new offers, innovative products and features that might put more money in your pocket or make your life easier. Or both. So it pays to have your antenna up and be on the lookout for something that is a better deal or works better for your financial lifestyle.

Greg McBride, CFA, Bankrate chief financial analyst

Consumers need to be aware of their banking choices so they don’t find themselves with a ChexSystems record.

ChexSystems ensures all consumers are safe and secure with their finances. A ChexSystems report can be the difference between a successful bank account application and an unsuccessful one. However, it also protects businesses and consumers from any fraud or mistreatment of finances, it ensures all consumers play by the rules.

What is a ChexSystems report and what banks uses them?

Financials. It’s a topic most people dread. It is even worse when you know your bank accounts haven’t had the brightest or cleanest history about them. If that sounds like your bank accounts, then this article is for you.

You may be wondering why you were denied by a bank while trying to open a new checking account. ChexSystems is likely the culprit of your poor reputation. But don’t worry, we will walk you through what ChexSystems is, what it is for, how you can find your report, and even wipe out your information from their system!

ChexSystems are reports that hold information about banking mistakes from the past, such as unpaid fees, undisputed checks and fraudulent activity. Banks will investigate your checking account through ChexSystems to determine if they want to accept or deny you based on your financial past. Bad news is that it could raise many red flags for you when trying to do anything with your current bank or a new one.

ChexSystems is an agency that creates reports for ay unresolved issues that you may have encountered in the past with your checking accounts. The reports’ information includes: any unusual or fraudulent activity or any type of account misuse over a five-year period.

According to the National Consumer Law Center, about 80% of banks and credit unions confirmed that they receive reports and information regarding customers from ChexSystems. By using this method, it helps banks decide whether they want to continue working with applicants to open new bank accounts with them. The agency will collect the consumer history reports and develop risk scores.

ChexSystems is owned by FIS. FIS Global provides banking and payment technology, processing services and information based services to major banks. Their goal is to help businesses make the complex, clearer. They are headquartering in Jacksonville, Florida and employ 52,000 people globally. FIS focuses on retail and investment banking.  

ChexSystems is governed by the Fair Credit Reporting Act that:

promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies

What a ChexSystems Report Includes

ChexSystems reports act as bank statements and are meant to paint a picture of your activity. Unlike credit unions where they focus on only your credit history, they collect information about your checking account.

  • Public records
  • Unpaid fees
  • Account inquires
  • General information
  • Unpaid balances
  • Fraudulent activity

You or your bank can request a report or risk score from ChexSystems. These reports will provide with all relevant information. Anyone can request these reports or scores from the agency. The ChexSystem’s report, however, will give you a better idea as to why you were rejected by a bank.  

Risk Score: Risk scores are scores that show banks you are not a high risk customer. The higher your score, the better chance you have at opening accounts without problems.

As all of your activity is scored. The Consumer report draws up a number, that number is considered your score. Scores range between 100 to 899.

Report: Also known as the “Consumer Disclosure,” a term coined by ChexSystems, shows items related to all of your account history. These Consumer Disclosures will show you items like unpaid fees from overdrafts, bounced checks, and suspected fraudulent activity. The report will also contain information such as credit inquiries, consumer initiated freezes, or if you were a victim of identity theft.

You can learn how to Request your Consumer Disclosure Report easily through the ChexSystems’ website.

If you are having problems with opening a checking account it is likely that ChexSystems is to blame. For closed accounts, they call them “for cause,” meaning: there was incorrect on false information regarding the account, several bounced checks over a short period of time, lack of payment of insufficient funds, overdrafts, fraud, any abuse of a checking, savings, or any type of transaction, or any bank rule violations.

What is ChexSystems Used For?

ChexSystems is a reporting agency used by banks and consumers to provide reports on checking accounts or other information regarding specific and/or suspicious activity.

ChexSystems can be used for “freezing” your banking reports. You have the option to request a freeze on your report. This will stop the reporting agency from releasing your reports and confidential information without your authorization. This freezing action will not stop or prevent any necessary pre-approval screenings for new credit. No fees are required to be paid for requesting a freeze. Freezing fees will depend on your residence.

Banks and ChexSystems

Banks, especially, use ChexSystems to identify whether they would like to pursue a customer and allow them to open a checking account with them. The ChexSystems report helps banks and lowers their risks of onboarding a new customer attempting to start a profile with them.

Yes, banks will typically use ChexSystems to identify if a new customer opening an account with them will result in risk. ChexSystems are the helping hand to banks where they can carefully screen applicants and review full financial reports for problems the applicants may have had in the past such as unpaid debt, past due fees, or any suspicious activity on their checking accounts from the past 5 years.

You can use ChexSystems, as well. You can order a report of your financial background. Your report will be mailed and arrive within five business days. The good news is that the shorter your ChexSystems report is means that you have the least amount of negative account activity and history!

Once you are in the ChexSystems, it will decrease your chances of opening up new accounts at banks.

Using ChexSystems Online

Yes, you can check ChexSystems online and request a report from them by visiting their website. Other than gaining access to your reports, you can learn more about identity theft, freezing reports, disputing information, or simply contacting a representative.

Anyone can use ChexSystems. You can order a personal report that will give you all of the information about your account history.

The report includes: Check writing history and checking account applications, openings, and closures.

Review your report and if you find that there are inaccuracies you may dispute them. If there is a case where you have been a victim of bank fraud or check writing fraud, your report will show all activities.

Every consumer is allowed to order one free report each year. According to the fair and Accurate Credit Transactions Act, consumers can now order their free ChexSystems report yearly!

Reading your ChexSystems report goes a little like this. You will be shown a lot of information including:

  • Source of Information
    • Bank / Credit Union with information about you and your accounts.
  • Reported Name
  • Reported Address
  • Reported SSN/ID
  • Driver’s Licence
  • RTN
  • Account
  • Date Reported
    • Day complaints began about your referred accounts
  • Reported For
    • A description of your account and reported incident that occurred i.e. Fraudulent activity, unpaid fees
  • Closure Status
    • Reports if the issue was resolved
  • Closure date
    • Resolution date

Credit Unions and ChexSystems

Yes, both banks and credit unions will use ChexSystems to reveal your past information to them. Here is a list of banks and credit unions that do and do not use ChexSystems:

Do:

  • All America Bank
  • Avidia
  • Blue Federal Credit Union
  • CIBC
  • Citi

Do Not:

  • ACNB
  • Bank of America
  • TD Bank
  • U.S. Bank
  • Wells Fargo

For the complete list of banks and credit unions that do and don’t use ChexSystems click here.

Banks That Do Not Use ChexSystems

There are a handful of banks that do not use ChexSystems. Just to name a few:

  • TD Ameritrade:
  • Axiom Bank
  • Woodforest National Bank
  • United Bank
  • Southwest Financial Federal Credit Union
  • Green Dot
  • Wells Fargo Opportunity Checking

ChexSystems is a commonly used reporting system by banks. There are however, banks that choose not to use it. It is not uncommon to find banks that will not take the take to check your records.

There is a term called “second chance banking” if you have had a few negative incidents on your ChexSystems report.

If you are interested in getting approved for the second chance banking, you can use overdraft protection, if this is a common problem you have had in the past.

Disputing ChexSystems

There are a few reasons why your report may contain errors. Mistakes happen all the time. No bank is perfect and information can input incorrectly. It happens. Bank employees may be typing in information too quickly or end up inputting numbers that don’t match yours. Descriptions could be poorly written and be misinterpreted. The incident may have been written incorrectly.

Another reason for error could be because of fraud and/or identity theft. IF you have ever beena victim of fraud, you know that identity can easily happen and become a huge headache to deal with. With technology today, people can steal information from others and use it to their advantage. There are people who try to pose as you and try to use your bank accounts.

In the case that you notice missing/incorrect information or random activity  after reviewing your report, you can legally submit a dispute through the ChexSystems’ website. Under the discretion of the FCRA, the agency and company must complete an proper investigation of your dispute, for free. Any errors must be corrected by the company that provided the false information.

If it so happens that you find incorrect personal information on your ChexSystems report, such as incorrect addresses, social insurance number, incidents that may have never occurred, no closure reports for resolved matters, you can definitely dispute this and ensure that all mistakes be corrected immediately. If you believe you were falsely accused for fraudulent acts on your bank account, you can bring it up in the dispute and to your financial institution for providing false information to ChexSystems. Always check that your information is correct with all of your banks and credit unions to ensure that these problems and misinformation does not happen again and save yourself the trouble.

Here are some steps you can take when filing your ChexSystems dispute:

  1. Mention the error in your report. Circle, underline, or highlight the error on the physical report. Make sure you photocopy one to send back to the bank or ChexSystems. Do not send them the original. Instead, keep the original for yourself.
  2. Use the right forms to file your dispute. You will need separate forms to file more than one dispute on different matters. Make sure you prepare the proper letters and include all of the necessary information.
  3. After gathering all of your forms, information, and dispute letters, you cane either dispute your case online, by mail, or by fax.

Completing the online forms requires you to read and review the directions on how to properly fill out the forms. Agree to the Terms and Conditions below. You will also be asked if you received your Consumer Disclosure Report.

Fill in all of the necessary information on the form and follow the instructions on the page. There will be a section titled “Dispute 1: Details.” In this section, you can report what the dispute is, the source (Your bank), and the date of the problem item in your report.

In the section titled “Nature of your dispute,” you can complete your write-up about your dispute and explain what the issue is in a 2,000-character limit letter. You also have the option to upload attachments with the supported file formats being: JPG, BMP, PNG, TIF, TXT, RTF, PDF, DOC, DOCX. Keep in mind the limit is 25 megabytes. Remember to upload a photocopy of your report with the circled problem to support your claim.

If you have another item you would like to dispute, remember to file a new dispute under “Dispute Another Item.” If you have more than one matter you would like to dispute, you have the ability of disputing up to 50 items.

Once all of your disputes are complete, it is time to send your documents in. You can either send your documents:

  • Online: Enter your security code found at the bottom of the form, then click “Submit.”
  • Mail: Send your dispute directly to ChexSystems, Attn: Consumer Relations, 7805 Hudson road, suite 100, Woodbury, MN, 55125.
  • Fax: Send to 602-659-2197

Don’t forget to contact your bank and credit union and send them all of the documentation, dispute letter and any other pertinent information in proving your case.

Waiting for your response from ChexSystems? it could take up to 30 days.

ChexSystems and Your Information

The ChexSystems agency will keep your records on file for up to five years starting from the closing date of your account. Any money you owe the bank from overdrafts will stay on your ChexSystems record.

Your account can and will be removed if t is suspected that it was opened by someone else other than you or it was a due to identity theft.

Problems like these will limit you when it comes time to open a new account with a bank, and you will ultimately be denied.

If your ChexSystems report causes a bank to deny you from opening a bank account, you can order your report within two months (60 days) of denial.

Clearing Your ChexSystems Record

Have you had trouble opening an account at a bank and are wondering what the problem might be? It is possible that your bank has done their research and background checks with ChexSystems.

So how can your clear your ChexSystems record and start fresh?

  • You can start by Requesting your ChexSystems report. By reviewing your report, you will be able to understand why your bank ahs decided to disapprove your new account. You can request this report once a year. Want to request your report? You can call ChexSystems at 800-428-9623 or visit the ChexSystems website. You can fill out the Consumer Disclosure form and submit it online. If you prefer to send your form by mail, you can send it to Chex Systems Inc, Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN, 55125. If you would like to fax your form, the ChexSystems Fax number is 602-659-2197.
  • Dispute Errors online by visiting the ChexSystems website. You can fill out the dispute form and upload any files that are necessary to support your claim. When you have completed the form and have reviewed it, you may click “submit.” You can send your form via mail or fax, too. Simply print out the dispute form and fill it out. Include information and copies of documents. Send them to the Fax or Mailing address previously listed.
  • If you prefer to speak with a representative, you may call the ChexSystems phone line. Note that you are not allowed to attempt to resolve any disputes that relate to identity theft or fraud over this phone line.

Sometimes we get caught up in our day to day lives, work, and family. As busy as life gets, we have to pay off our debts. This is why it is important to pay any kind of debt you may still be owing. Pay it as soon as you can to clean your record.

Another way to clear your ChexSystems record is to ask creditors if they would kindly remove your information from the system. Ensure that you pay your debts proper to asking. Once this is complete, you can then request for your information to be deleted. Remember to keep any receipts or documents that have to do with paying your debts so that you have a paper trail in case they ask for verification.

Lastly, if you do not mind waiting, you can leave it until the 5-year mark for your information and records to be completely removed from ChexSystems.  

Account Closure

ChexSystems will not close your bank account. However, they can prevent you from opening new bank accounts. The only time ChexSystems will close your account with them is if you request it and request it by your financial institution.

Opening a New Account

If you have had previous problems with your ChexSystems account, then you will surely have difficulty with opening a new account. Check bank policies to ensure you are able to open a new account. Order and review your ChexSystems personal report before attempting to open anew account.

How to Keep Yourself Out of ChexSystems

If you have ever had negative activity on your checking accounts, it is likely those actions have landed you in the ChexSystems records. You may have not known, but ChexSystems has been keeping an eye on everyone’s checking accounts for any type of negative activity. Unfortunately, there are many people who cheat the bank and cannot be found anywhere in ChexSystems.

Something as simple as overdrafts and missing fee payments are of the most common reasons why ChexSystems would target someone. If you want to learn how to stay out of ChexSystems, you can do the following:

  • Always stay up to date on your bank account balances
  • Inquire about the length of time it takes for deposits to be credited to your bank account
  • Ensure you do not choose to write a check if there are insufficient funds in your account to cover it
  • Review your account before closing it by clearing all checks, stopping all automatic debits, and paying any unpaid fees

By taking these necessary steps, you will be able to have no problem staying out of ChexSystems.

Maintaining a Positive ChexSystems Report

It’s important to know the right steps to take in maintaining a glowing report on ChexSystems. If you recently discovered that ChexSystems has a profile report on you, you can rest assured that you have the ability to break the cycle and add some positivity to your report.

Want to learn how you can maintain a positive ChexSystems report? Here are ways you can do just that:

  • Halt automatic payments before you close a checking account: Sometimes it will take the bank more than a week to process any transaction that needs to be deducted from your account
  • Go to your bank or credit union to close your account: do not let your account become a negative balance before closure
  • Allow enough time when depositing checks: before writing against the balance
  • Be mindful with your joint accounts: If something were to happen to your joint account, both account holders will be accountable if something happens to it
  • Protect your debit cards: Never share your card or PIN number with anyone. Always keep this information private and do not write it down anywhere where someone could easily find
  • Avoid post dating any checks: Your account could get closed if you have bounced checks, you can cash them out early
  • Balance your check book: Avoid overdrafts and add account protection
  • Report stolen or lost checks: When you notice you have misplaced your checks, notify your bank immediately to protect yourself from any fraud that could come of the situation
  • Contact your bank if you are planning to change your address: Ensure your bank has all up to date and correct address information
  • Always look at your bank statements on a regular basis: to make sure there is no unusual activity or an item that doesn’t seem to coincide with your regular activity

You will never have a negative ChexSystems report if you follow these steps. The main takeaway here is that you should always be aware of your bank accounts. Regularly review your statements for any unusual activity. If you notice something doesn’t look quite right, or see that there is missing or incorrect information, notify your bank right away.

If you requested a Consumer Disclosure Report from ChexSystems and notice that they may have incorrect information about you or the numbers do not add up, submit a dispute as soon as possible. Resolve any issues between you, ChexSystems, and your financial institution for the least amount of worry.

Review any financial history, and if something looks suspicious, take action. ChexSystems reports are a great way to investigate your checking accounts and really get a clearer understanding of your financials.

It doesn’t hurt to order your Consumer Disclosure Report and review it so that you can stay on the right track.

Now, if you ever get denied by a bank in the future when you try to open a new account, remember ChexSystems is likely the one behind the decision banks make about their customers.

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