Chexsystems is a Credit Reporting Agency (CRA) governed by the Fair Credit Reporting Act (FCRA) and other laws. Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the Fair Credit Reporting Act (FCRA), they are subject to the same rules and regulations. Chexsystems monitors and reports on your banking activities. It looks for unusual or suspicious banking transactions, overdrafts, cashing checks against insufficient funds and not meeting minimum account balances.Many banks and credit unions use chexsystems when opening a deposit account to determine if the account should be opened.