Checks Systems For Merchants (SCAN)
SCAN and CHEX Systems are owned by Deluxe Check Printers; this company prints the checks used by consumers for banking purposes. If a retailer wishes to determine the validity of a check, he or she may contact SCAN or run the check through the check scanner to find information on a closed account or whether the consumer has a history of bad checks and credit.
A micro coding on the check indicates whether the consumer has one or more closed accounts or whether a bad credit history or pattern of bad financial practices exists in the consumer's file. (A driver's license is also used to establish the consumer's identity when writing the check.) Negative information is generally kept on file for two years, but if individuals clear their accounts, the information will be removed within 24 hours.
SCAN Consumer Relations
19803 North Creek Parkway
Bothell, WA 98011
Assembly Bill 465 (Peace) requires check cashers to obtain a permit from the California Department of Justice, Office of the Attorney General to conduct a check cashing business. Applicants must pay fees for fingerprinting and criminal record checks; they must pay an annual renewal fee in addition (Civil Code 1789.37).
The term "check cashers" does not apply to state or federally chartered banks or savings associations, or to retail sellers that cash checks or issue money orders, if:
(1) they do not charge a minimum flat fee for the service in excess of $2.00, and
(2) the service is provided to their customers incidentally to their main purpose or business (Civil Code 1789.31). "Retail seller" means a person or entity who engages in the business of selling consumer goods to retail buyers (Civil Code 1749.1(b).
California Department of Justice
Office of the Attorney General
1300 I Street
Sacramento, CA 95814
(800) 952-5225 (CA Callers)
(916) 322-3360 (Out of State)
(916) 323-5341 Fax
(800) 952-5548 (TDD in CA)
(916) 327-5564 (TDD Out of State)