Ever get denied a checking account and not understand why? Or had a check declined at the register with no clear explanation?
You’re probably dealing with one of three banking background check systems: ChexSystems, TeleCheck, or Early Warning Services (EWS). They sound like the same thing, but they’re not. Each one tracks different types of financial behavior—and knowing which one flagged you could be the first step to getting back on track.
This guide breaks down what each system does, how they affect you, and what you can do to fix issues with your record.
What Is ChexSystems?
ChexSystems is a specialty consumer reporting agency that tracks your activity with checking and savings accounts. Banks use it to decide whether to approve your application for a new account.
If you’ve ever had too many overdrafts, unpaid fees, or an account closed by your bank, there’s a good chance ChexSystems has that information on file.
ChexSystems doesn’t track your credit score—it focuses only on your banking behavior.
ChexSystems may flag you for:
- Overdrafts and unpaid fees – Especially if they weren’t resolved
- Accounts closed by the bank – Due to non-payment or policy violations
- Suspected fraud or misuse – Including identity theft or check fraud
- Excessive bounced checks – Even if eventually paid
See also: Banks That Don’t Use ChexSystems
What Is TeleCheck?
TeleCheck is a check verification service used by retailers, not banks. When you write a check at a store, the system tells the merchant whether to accept it.
This isn’t based on your bank account balance. It looks at your past behavior with checks—especially bounced or unpaid ones.
TeleCheck may flag you for:
- Check-writing history at retail stores – Patterns of declined or successful checks
- Unpaid returned checks – Especially if you never settled them
- Check fraud alerts – Such as altered checks or mismatched signatures
If your check gets declined at the register, TeleCheck could be the reason—even if your account has money in it.
What Is Early Warning Services (EWS)?
Early Warning Services is a consumer reporting agency owned by major banks, including Wells Fargo, Chase, and Bank of America. It allows banks to share account and fraud data in real time.
Unlike ChexSystems, EWS focuses more on identity verification, fraud detection, and broader banking behavior. If you’ve had issues with large banks or flagged transactions, EWS may have shared that information with others.
EWS may flag you for:
- Account openings and closures – Especially if there were issues involved
- Suspicious or fraudulent activity – Including identity theft and account takeovers
- Identity mismatches – Like inconsistent Social Security numbers or names
- Shared bank risk data – Alerts passed between banks through the EWS system
This system often catches people off guard because most banks don’t mention it upfront.
See also: Banks That Don’t Use Early Warning Services
Key Differences: ChexSystems vs. TeleCheck vs. EWS
Here’s how each system compares across the key details that matter:
| Feature | ChexSystems | TeleCheck | Early Warning Services (EWS) |
|---|---|---|---|
| Who Uses It | Banks and credit unions | Retailers and merchants | Large national banks |
| What It Tracks | Bank account history | Retail check transactions | Real-time account data, fraud |
| Can You Check Your Record? | Yes, free credit report | Yes, request from TeleCheck | Yes, request from EWS |
| Common Triggers | Overdrafts, unpaid fees | Bounced checks at stores | Fraud flags, identity issues |
| Can It Block You From Banking? | Yes | No | Yes |
| Can You Dispute Errors? | Yes | Yes | Yes |
How These Systems Affect You
Getting flagged in one of these databases can make basic banking much harder. If you’re already dealing with limited options or trying to rebuild, it can feel like you’re hitting a wall at every turn.
Common consequences include:
- Denial when opening a new checking account – Even if your credit score is fine
- Checks getting declined at the store – Despite having funds in your account
- Delays or blocks with mobile deposits – Especially with new fintech apps
- Increased suspicion when opening online accounts – Some apps screen through EWS
One mistake—or even outdated info—can follow you around for years.
How to Check Your Status With Each System
You have the right to request a free credit report from each of these agencies once every 12 months. It’s the same law that applies to credit bureaus, and it gives you a chance to see what banks or merchants are seeing.
How to get your credit report:
- ChexSystems: Visit chexsystems.com or call 800‑428‑9623
- TeleCheck: Call 800‑366‑2425 to request your report by mail
- EWS: Visit earlywarning.com or call 800‑325‑7775
Step-by-Step: How to Fix Errors or Dispute a Record
Mistakes happen—and if one of these agencies has wrong information on you, you have the right to challenge it. Each one must investigate disputes under the Fair Credit Reporting Act.
Here’s how to dispute a record:
- Step 1 – Request your full credit report from the agency
- Step 2 – Look for any inaccurate or outdated entries
- Step 3 – Write a dispute letter with evidence (statements, letters, receipts)
- Step 4 – Send it by certified mail or through the agency’s website, if available
- Step 5 – Wait for a written response, which usually comes within 30 days
If they don’t fix the error, you can file a complaint with the Consumer Financial Protection Bureau.
See also: How to File a Dispute with ChexSystems
Which One Matters Most for You?
Each system plays a different role. The one that matters most depends on where you ran into problems.
Here’s how to narrow it down:
- If a bank denied your account – Check ChexSystems and EWS
- If a store rejected your check – Check TeleCheck
- If you’ve had problems at big banks – EWS is likely behind it
- If you’re applying at a credit union – ChexSystems is the one to watch
In many cases, more than one system may be involved. It’s worth checking all three if you’re unsure.
Final Thoughts
ChexSystems, TeleCheck, and Early Warning Services each track different types of financial behavior—but all three can block you from doing basic things like opening a bank account or writing a check.
The good news is, you’re not stuck. You can request your credit reports, dispute errors, and find banks that offer second chance options if needed. Once you know which system flagged you, you’ll have a clearer path forward.
Need help opening an account without getting flagged? Explore our list of second chance checking accounts that work with you—not against you.
Frequently Asked Questions
What’s the difference between ChexSystems and a credit bureau?
ChexSystems tracks your checking and savings account activity, not your credit score or loan history. Credit bureaus focus on credit cards, mortgages, and other loans.
Can you be listed in more than one system?
Yes. You can have records in ChexSystems, TeleCheck, and Early Warning Services at the same time, depending on where and how issues occurred.
How long do negative records stay?
Most negative entries stay on your ChexSystems, TeleCheck, or Early Warning Services credit report for up to five years unless successfully disputed.
Can you be denied a job because of these records?
Usually not. These systems are used by banks and merchants—not employers. Employment background checks rely on different types of consumer reports.
