A fraud prevention tool from Southwest Corporate...

 

Southwest Corporate has teamed with Early Warning ® Services to offer member credit unions DEPOSIT CHEK® Inquiry. DEPOSIT CHEK ® Inquiry is specifically designed to help curb the impact of check fraud. Credit unions now have access to the data the very largest financial institutions; including most major banks, use to mitigate losses.

 

The nationwide database contains:

• Account status on over 210 million accounts
• Over 18 million stop payment records
• Over 1 million negative account and counterfeit item records

 

You receive:

• Early morning warnings of hard, soft, and info hits on items deposited at your credit union the previous day
• Intra-day notice of returns processed that day which match items deposited at your credit union in the last 10 days

 

How it happens:

1. Every day Southwest Corporate transmits MICR data of your deposited items to Early Warning ®
2. Early Warning ® runs the file against its data base and flags matches of your deposited items with high-risk accounts or transactions
3. Early Warning ® transmits a report to Southwest Corporate before you open for business
4. You log on to TranZact and view the warnings, if any, for items deposited the previous day
5. You decide to place, extend or release holds on those items
6. Upon receipt of return files from reporting financial institutions, Early Warning ® runs a match with the last 10 days of your deposits and reports items that will be returned
7. Early Warning ® transmits warnings from matches, if any, to Southwest Corporate
8. Southwest Corporate sends you an email notice of potential return; you log on to TranZact to view the warning

 

The overnight report provides warnings and statuses for

Account - 36 statuses including Present, Not Located, Closed, NSF/OD, Uncollected Funds (UCF), Deceased, Lost/Stolen, New Account

Stop Payment - Five statuses for individual and range stops that match on three of the four fields

Negative File - Five statuses including Account Closed, Counterfeit Account

Return Item - 23 statuses including Insufficient Funds, Endorsement Missing, Signature Missing, Check Altered, Dormant Account

 

In addition to the status, the report includes the routing number, account number and short name of the financial institution that reported the warning and the percent probability of return. Based on the probability of return (PRP), a match is determined a:

Hard Hit - high probability of return

Soft Hit - possibility of return

Informational Hit - may not result in return but review of depositing account suggested

 

Can't wait until the next day? Need your notices in real-time? Then you need DEPOSIT CHEK ® Reader

 

For more information, email an Account Executive at contactus@swcorp.org or call 800.442.5763.