PAYMENT CHEK
Credit Card Issuers • Remittance Processors
The PAYMENT CHEK service identifies potentially high-risk payments made from checking accounts.
For both physical and online items, the service validates an account’s existence, reports its status and whether the payer’s name, address and other elements match the account.
How It Works
For remittance payments accepted via mail, telephone, Internet or in-person, information is extracted and transmitted to Early Warning Services.
Bank routing number, account number, check number, dollar amount and account holder name 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 and are matched to cardholders’ account records.
When combined with other risk management tools and existing customer records a decision may be made to ‘extend’ or ‘delay’ availability of a customer’s credit.
By restricting credit where there is reasonable doubt of collectibility, issuers can prevent actual losses that would have otherwise occurred.
Upon further research, flagged accounts may warrant restrictions or even closure.
Positive notification also enhances customer interaction when it aids in decisions to release or shorten a lengthy hold.
Advanced Notification
Various positive and negative responses are available through the real-time ( ) and batch () offerings of the PAYMENT 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.
Identity to Account Matching
Yes/no/unavailable responses indicate whether the payer’s name, address and other data elements match financial institution records for a particular account.
* Available late 2007
For more information on the PAYMENT CHEK service, please Contact Us.
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