We get asked this question all the time: “Who is ChexSystems, Inc.”?

Here’s the answer (at least as of the Spring of 2009 … as the ownership changes from time to time!).

At least as of the date of this blog post, ChexSystems, Inc. is a subsidiary of Fidelity National Information Services, Inc. Fidelity National Information Services, Inc. is a publicly traded company (you can find them on the NY Stock Exchange under the symbol “FIS“). They describe themselves as:

a leading provider of core financial institution processing, card issuer and transaction processing services and outsourcing services to financial institutions and retailers worldwide. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 13,000 financial Institutions in more than 80 countries.

ChexSystems, Inc. was acquired by FIS when FIS acquired eFunds, Inc. in 2007. Now, FIS has a complete line of financial services products, including products related to account opening and decisioning (such as the bad customer database maintained by ChexSystems, Inc.).

It’s interesting to note that there is almost no discussion about ChexSystems, Inc. on the FIS website. Presumably, FIS is trying to avoid customer contact and complaints?

One of the few places where the connection between FIS and ChexSystems, Inc. can be found is in SEC filings made by FIS. Here’s a quote from FIS’ most recent annual report:

The Acxiom action was filed against the Company’s ChexSystems, Inc. subsidiary, while the Biometric suit was filed against the Company’s Certegy Check Services, Inc. subsidiary. The judge recused himself in the action against Certegy because he was a potential member of the class. The lawsuit was then assigned to a new judge and Certegy filed a motion to dismiss. The court granted Certegy’s motion to dismiss with prejudice in the third quarter of 2008. ChexSystems filed a motion to dismiss or stay its action based upon the earlier settlement and the Court granted the motion to stay pending resolution of the Florida case. The court dismissed the ChexSystems’ lawsuit with prejudice against the remaining defendants in the third quarter of 2008.

(That is, the SEC filing discusses a litigation matter involving FIS’ subsidiary, ChexSystems, Inc.).

Anyone have any more detailed information about ChexSystems, Inc. and their corporate structure?

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Related ChexSystems Banking Information:

1. ChexSystems Ends Partnership with the GetChecking Program
2. State of Missouri Sued on a Claim Relating to ChexSystems
3. The FDIC Says Almost 1/4 Of Banks Offer “Second Chance Accounts”
4. What is Telecheck?
5. Debit Cards are Passing Credit Cards in Popularity

Tagged as: Financial services