Alliance Of Equifax Check Services and PSN To Help Arm Retailers Against Fraud

TAMPA, August 20, 1996 -- Equifax Check Services, the world's largest provider of check guarantee and verification services, has formed a strategic alliance with The Payment Solutions Network, Inc. (PSN) to offer retailers a new weapon in the war on fraud.

PSN, a bank-owned consortium that facilitates electronic check presentment and related check-clearing processes, is providing up-to-date information on closed-for-cause accounts (TNOTES) and will pilot other bank information for screening checks cleared through Equifax Check Services.

"Equifax has always subscribed to the practice of using timely and accurate data to combat check fraud," said Thomas G. Gordon, senior vice president and general manager, Equifax Check Services. "Aligning with PSN is another step in our course of action to help prevent fraud. Overlaying PSN's closed-for-cause account information into our risk scoring models will add intrinsic value for the retail customers we serve."

"Adding additional recipients of the TNOTE data is a critical step in our on-going effort to combat check fraud at the point-of-sale and at the bank 'new account' desk," said Denny Carreker, Managing Director, Payment Solutions Network. "PSN and Equifax are working closely in implementing TNOTEs and other initiatives and are committed to reducing the risk of accepting checks through more accurate decisioning. Together, we can reduce the number of checks accepted at the point-of-sale on Closed Accounts as well as utilizing timely information to accept checks that would have been previously declined."

Equifax will be utilizing PSN's TNOTEs, the electronic notification of checking or DDA accounts that have been closed-for-cause. TNOTEs includes the MICR (checking and bank account number) as well as the driver license number when available. Data is primarily being generated from the Southwest, Southeast, Midwest and Mid-Atlantic regions, with other geographic coverage constantly expanding.

Equifax is planning to pilot another level of bank data available through PSN, an early-warning negative database comprised of check level and account level information known as SmartNOTES. This includes information on closed or restricted accounts, stop payments and exception items.

PSN is a Dallas-based, bank-owned organization that creates value for its owners and their customers by increasing operational efficiency within the check-clearing process and by developing information-enhanced transaction products with revenue potential. Its 19 members represent more than 130 banks nationwide and more than 30% of the deposits in the United States.

Equifax Check Services is part of Equifax Payment Services, a leading provider of check verification/guarantee and card processing services that guaranteed more than $17 billion worth of checks around the world in 1995. Equifax Inc. (NYSE: EFX), committed to Global Information Leadership in the Information Age, is the leading provider of information services that help grant credit, authorize and process credit card and check transactions, insure lives and property and control healthcare costs.

Established in 1899 in Atlanta, Equifax today employs 14,000 people throughout North and South America, the United Kingdom and continental Europe. Revenues for the 12 months ended June 30, 1996, totaled $1.7 billion.