What is ChexSystems?
ChexSystems is a credit reporting agency and check verification service. It is run independently of any financial institution and is owned by a subsidiary of eFunds called Fidelity National Information Services.
What is E~funds for schools?
The e~Funds for Schools Story. EFS is powered by Magic-Wrighter, Inc., and has been providing electronic payments to schools for over 35 years. The company was established in 1982 for the purpose of bringing electronic payment solutions to the financial banking industry, allowing banks, thrifts and credit unions to provide cost-effective payment…
Why do banks use ChexSystems to screen applicants?
The reason banks use ChexSystems is simple, and that is to save money. Banks which use ChexSystems do two things: They use the system to screen applicants. They provide information which is aggregated through the system which other banks can use.
Can I open a checking account with ChexSystems?
According to eFunds, more than 100,000 bank branches belonging to more than 9,000 banks throughout the US make use of ChexSystems. So that means that you cannot just walk into any bank or credit union and expect to be able to open a checking or savings account if you are in ChexSystems.