Anyone signed up with a company for ID Verification? I have it narrowed down to 2 different providers that we are looking at, but wondering what everyone else is using and what you like about them and why you chose them.

We are considering the Penly/Check Velocity product but cost is a consideration. If we choose to add the ChexSystems and credit report to the verification we are estimating a cost in excess of $6 on each account (not including the initial $3,000). We are looking at it not just as a verification tool but also as a marketing tool (with the credit report included) as well to offer other products. The recordkeeping it can do for us is very attractive.

I'm curious as to where the $3,000 came from to use ChexSystems. Do you not use them for a negative database now on new deposit accounts? Is this the initial set-up fee? They told us that it would only be 48 cents per account up to 15,000 for ID Verification.

The $3000 is the set up fee for Penley's Fast Watch System. I visited with them for over an hour this morning and they were able to satisfy all of the questions I had regarding how their system works. They also took the time to walk me through how their systems check for OFAC and 314(a) matches. It was really cool and should be a huge time saver. They will have a connection to ChexSystems, so all you have to do is push one button to get that report, in addition to the ID Verification, versus entering the customer's info. more than once. They also have a 90 day money back guaranty on the $3000 set up fee, as long as you sign up by next Monday.

I was just a little confused as to the extra $6 per account if they add Chexsystems. Jules, is Penley what you are using?

There is a $3,000 up-front charge and then $2.50 or so per account, however, if you want a credit report you will "click" on a button and for an additional charge.....probably estimated at $2.50 or so you can get a credit report. Also, they will have another button you can "click" and get your ChexSystems for the regular charge that ChexSystems charges.......Penley just makes if all one step and you don't have to do the credit request and the ChexSystems request seperately. If you don't want the credit report or the ChexSystems report.....or both....then you can just do the $2.50 verification.

It looks like the Experian credit bureau also offers ID verification services (they have a CIP workpaper if anyone is interested in viewing). Just wondering if anyone has checked pricing with them or know if they integrate credit reporting with their services?

We've seen presentations from Experian, Equifax, and eFunds. So far, they all seem pretty comparable. I think we have one more demo coming next week...

We currently use eFunds for ChexSystems and FraudFinder, and adding their Qualifile (for ID verification) would bring the inquiries to somewhere around $4.85 per. I think Experian's was around $3 per but didn't include ChexSystems. (Sorry, can't remember what Equifax was quoting.)

Sales is willing to pick up some of the cost because they could use the credit scoring part of it to target products and possibly even on-the-spot approvals.

We haven't officially signed up yet - but we are looking at InstantID from Lexis/Nexis. No set up fee, $2.50 a look up. Nothing fancy but it does verify customer identity and provide a risk meter. This is the product that has been endorsed by the ABA. Hope this helps.

The term is descriptive rather than legal. My understanding of it is that it is derived from the fact some consumer reporting agencies only report "negative" information; i.e. if you submit my name and identifying information to Chex Systems, you only get a response if they have negative information. If I have never run afoul of one of their member banks or merchants, they do not have anything to say about me.

Other consumer reporting agencies; e.g. credit bureaus, would report both positive and negative information.

Jules - what size is your bank? I'm trying to find out if smaller sized banks (i.e. under $350 million) are purchasing these various products that are available. THANKS!

Our institution is just under $250MM and we chose to go with the Bankers System ID Flag product. They have partnered with RiskWise who also is associated with Lexis-Nexis and the InstantID product. I have not seen very many other products but I'm sure they are each fairly similar. If you haven't seen how these products work, some vendors do have a web demo.

So do I really need to employ a "positive" search function if I already have Chexsystems in place for deposit accounts and eFunds in place for loans? I don't think my risk level would require it, but am I missing something?

We aren't buying anything. We will be verifying through photo id, chex systems, credit bureau, etc.

That is going to be our approach, unless someone persudes me otherwise.

So, for those banks that are relying on ChexSystems and ID from the customer (which is what we're doing as a small bank) do you have any procedures in place for verifying the address and phone number, and if so, what about if the information provided by the customer cannot be verified (i.e. unlisted number/address).

Call the number given to you. If you reach the customer and they appear to know about the account, sounds good. Send a letter to the address given with return service requested. If the letter comes back, check into it further. If not, you have verified the information given to the best of your knowledge.

I think you are a little too deep on verification. Obviously we want to have all good info, but per my read of the reg, all we MUST verify is the name, address, SS#, and DOB. These can all be done via Chexsystems, drivers license, other ids. Does someone else have another read?

Sorry, I did not mean to insinuate that I would be doing such things. I was simply offering a suggestion on how one could go about verifying that information.

We generally will expect to have very few accounts that we would consider to be high risk. (Community Bank) Most of the time we will verify the photo id and do a run on Chex Systems and/or a credit bureau report. That is what we already do, so it will not be a major change.

We're doing all of that... I guess my real question is: what do you do if everything's unlisted, can't get a hold of the customer at work or at home, etc., etc. We're toying with the idea of putting a hold on the account, but I don't see how we can really justify doing that.

I'm going to add my own two cents to my posting above:

I think that our CIP proposal is way over the top of what actually needs to be done. Next thing you know we'll be subjecting our new customer's to drive-by's and houses inspections.

We are allowed to implement account restrictions within the CIP to be in effect while verification is pending. Suggestions can include placing restrictions on the dollar value or number of transactions. You can also always wait to open the account until verification can take place.

I am a large FI well over 3 billion in assets,, We most likely will be going with banker's system ID flag which is basically LexusNexis data, it will be around 1.75 per record. We are already (for about 2 years) using Qualifile on the deposit side, but do not feel it is a verification system, we use the basic system but the primary purpose is for a cross-sell tool because of the credit report. I just can't get comfortable that pulling a credit report or chexsystems is enough for a bank of our size. We are planning on using a nightly batch process..

glad to hear that there are some others that are not purchasing anything at this point. We are around $700 million with 22 branches. I'm not convinced yet it is necessary. (May be convinced after our 1st CIP exam !)