DEPOSIT CHEK
Retail Banks • Savings & Loans • Thrifts
The DEPOSIT CHEK service is a proven solution to help prevent fraud and expedite funds availability decisions at the teller window, new account desk, image ATM, online banking and/or the back office.
Positive and negative responses for both on-us and off-us items validate the existence and status of draftable accounts.
Offerings
For deposits and payments, information is extracted and transmitted to Early Warning Services.
Bank routing number, account number, check number and dollar amount are compared to current information provided directly from paying institutions on a nightly basis.
Positive and negative results are provided in a real-time response or appear in a next-day report.
- Real-time - An immediate response is provided to an institution’s automated decision system or directly to the teller window, ATM or new account desk.
- Batch - Next-day report or optional intra-day reports contain account and item-level warnings.
Return item warnings are provided intra-day once a paying institution makes a no-pay decision.
- Check Reader - Deployed in high-risk deposit processing areas, an easy-to-use check reader provides account and item-level warnings within seconds.
Advanced Notification
The following responses are available through the Real-time, Check Reader ( ) and Batch () offerings of the DEPOSIT CHEK service.
Account Status
Responses indicate what a paying institution reports as of the prior day’s close of business.
These include whether an account is in an open, closed or overdrawn status.
Other informational responses indicate if an item is drawn on a credit card, brokerage or other type of account.
Account Score
On a daily basis, Early Warning Services analyzes millions of transactions associated with the accounts of non-participating institutions.
For items drawn on these accounts, a predictive score is delivered indicating the level of risk.
Item Level
Responses include stop payment matches, accounts with recent return activity, and velocity warnings* indicating a possible counterfeit scheme.
Stops include consumer checks, official checks and money orders.
Return Notification
When a paying bank decides to return an item, this decision is relayed via a batch process to the centralized risk area of an inquirer. Not limited by a fixed dollar threshold, this process occurs well in advance of a physical return and often times faster than an EARNS notification.
* Available late 2007
The Industry Standard
A long established best practice among leading U.S. financial institutions has been the use of the batch DEPOSIT CHEK service to reduce exposure to losses.
It is the means by which most major financial institutions as well as other financial services organizations contribute daily status updates on their own accounts, stop payment records and outgoing returns.
They also contribute transit and return information to help generate an account risk indicator on the accounts of non-participating institutions.
Inquiring financial institutions with greater than 250,000 transaction accounts are required to contribute to the Shared Account database.
Item Processors play a critical outsourcing role by delivering the DEPOSIT CHEK service to their clients.
For more information on the DEPOSIT CHEK service, please Contact Us.
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