ForumsFinancing Tips

JT-----Where are you from (what state) ? Have you paid off your old checks that got you into chex systems in the first place ?

Cheers,

T.Michael

FYI, if anybody would like an explanation of what Chexsystems is, please read on.

I know the banks won't appreciate this description,but it's basically an industry 'black list' the banks refer to
in order to avoid 'undesirirable' customers. All or most of the banks have banded together (conspired?) to prepare this list. Basically, if someone sticks a bank with unpaid fees, that bank submits that person (via name, SS # and whatever) to the 'black list'. So if the offending person tries to just walk away from Bank A and open up a new account at Bank B, Bank B will run a search on the blacklist and if the name of the potential customer pops up, Bank B will refuse to open a new account until the customer does whatever is necessary (usually pay what he/she owes to Bank A) to get their name off the list.

Incidentally, there is a version of this system within the bankcard (i.e. credit card processing) industry as well. It's known now simply as the 'match list', previously the CTMF (Combined Terminated Merchant File). It works much the same way as the Chexsystem. If a merchant tries to stick a processor with unpaid fees (or is involuntarily closed down for fraud or other serious violation) and gets placed on the Match List, that merchant is going to find it virtually impossible to get underwritten by any other USA processor, essentially putting that merchant out of business. In fact, most processors routinely run match profiles at random times, so even if the match isn't picked up initially, even if it comes across after the merchant has been approved and begun processing, that merchant will be abruptly shut down instantly. You can't run and hide.

AMSPCS
amspcs@juno.com
www.MerchantServices-help.com

I suggest you consult an attorney if you feel you are being unfairly treated..

AMSPCS

Much of what the previous poster says is true. However, be aware that if YOU are on the Match List, getting a friend or relative co-signer won't help you. They'll make the match via your business name, personal name, address, social security number, and any other different ways. Bottom line: If you are on the match list, any business associated with your name will not be considered for a merchant account.

Your best bet is to face the situation head-on and fix it once and for all, not let it fester for the remainder of your business life. If you are unable to negotiate something with the bank, then I say again, you best bet is to consult a good lawyer.

AMSPCS

thanks all for all the good advice. I have tried to talk to a branh manager but it was a no go. I haven't consulted an attorney yet, but that it worth the shot. Something has got to give!! my goal is to fight this thing head-on. Because I want to move forward and although I might have made some mistakes in the past, I want to be taken seriously as a legit entrepreneur. Thank you all I think I'm on my way!