Check Systems" in the U.S. are 3rd party database
providers that cater to banks and merchants. The data they provide lets a bank
know if there is a "risk" involved in allowing you to open a checking account.
The data also lets merchants know if there is a risk involved in accepting a
check from you to pay for goods or services. ChexSystems is the "Check System"
that provides info to banks, and Telecheck & SCAN (Shared Check Authorization
Network) are the 2 major "Check Systems" that provide info to merchants. Based
on info provide by Chexsystems, a bank may reject you from opening a checking
account. Whereas information provided by SCAN or Telecheck may cause a merchant
to not accept your check and instead require you to pay by another method such
as cash or credit card.
When you go to a bank, take a glance at the desks sitting in the main area.
Most, if not all, will have a Chexsystems placard sitting on them. And when you
visit a retailer that accepts checks, you may see a machine on the counter that
they can run checks through for Telecheck or SCAN to report back to them
instantly.