SCAN is a database of information used by banks and merchants to make check cashing (or “check acceptance") or account opening decisions. SCAN is operated by Deposit Payment Protection Services, Inc., and is also referred to as the “Shared Check Authorization Network”. The data collected and sold by SCAN is intended to help banks and merchants reduce their returned check losses, improve customer service and safeguard against identity theft and fraud. SCAN does not make the decision to decline your check. That decision is made by the individual SCAN member and may be based on information contained on the SCAN database. People with negative information in SCAN also have a difficult time opening a new bank account. Negative information reported to SCAN is often reported to ChexSystems and will end up on your ChexSystems report.
Related Terms: