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Early Warning Services LLC, a privately held financial technology (fintech) company owned by seven major banks, owns several companies including Zelle, a money transfer app. It also provides identity, authentication, and payment solutions for banks, governments, and payment systems companies.
Learn more about what Early Warning Services does, about its money transfer app, and how you can request a copy of the company’s consumer report on your banking history.
Key Takeaways
- Early Warning Services is a privately held financial technology (fintech) company that owns mobile payment app Zelle.
- Seven major U.S. banks own Early Warning Services: Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.
- Early Warning provides consumer banking information to banks and financial institutions to help them minimize risk and fraud.
- You can request a consumer report from Early Warning, but it does not include a credit score.
What Early Warning Services Does
Early Warning Services is fintech owned by seven major U.S. banks: Bank of America Corp. (BAC), Capital One Financial Corp. (COF), JPMorgan Chase & Co. (JPM), PNC Financial Services Group (PNC), Truist Financial Corp. (TFC), U.S. Bancorp (USB), and Wells Fargo & Co. (WFC). It also provides identity, authentication, and payment solutions, including Zelle, a money transfer app.
The company also provides check- and bank-screening services. Its fraud detection and prevention services for bank accounts and payment transactions are designed to assist banks; companies that accept checks, like retailers; and other financial institutions. In all, Early Warning Services connects with more than 2,500 financial institutions, government organizations, and payment companies.
Zelle Network, previously clearXchange, allows users to transfer funds within minutes with no fee. It launched in 2017 to compete with the likes of Venmo and PayPal. About $75 billion moved through the app that year. In the second quarter (Q2) of 2022, more than $155 billion moved through the app.
Consumer Reporting
Early Warning Services does not generate credit scores for consumers, but, as a consumer reporting agency, it does provide information to banks and financial institutions about consumers to help banks determine whether to provide products and services. The information, gleaned from thousands of financial institutions, helps banks detect fraud and assess risk.
You are entitled to request a copy of your consumer report from Early Warning under the Fair Credit Reporting Act, and you will not be charged a fee. You can receive one free report every 12 months.
If you receive a consumer report about your banking history, review it to ensure that it’s accurate. If you see any information that you think is not correct, contact Early Warning Services to try to resolve the issue.
Early Warning Services’ History
Early Warning Services has been providing information to banks and financial institutions for more than three decades. The company often has a role in a bank’s decisions to approve financial products and services like checking accounts and mortgages.
In the 1990s, several banks formed an independent company after they developed a model to mitigate deposit losses by sharing data. The company first launched its check deposit and payment validation products, followed by an account fraud detection service and fraud data sharing in the early 2000s.
Next, the company branded itself as Early Warning as it added services for real-time check deposits, account opening services, and identity risk services. Soon, it added more fraud protection offerings, including high-risk transaction alerts for ID theft agencies. It also added asset verification services.
Finally, Early Warning launched an enhanced mobile suite and offered multifactor authentication through a single platform. In 2017, it launched the Zelle Network as a real-time payment transfer service, which it has been enhancing in recent years.
Which banks own Early Warning Services?
Early Warning Services LLC is owned by seven major U.S. banks: Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.
Is Zelle owned by Early Warning Services?
Zelle, a money transfer app, is owned by Early Warning Services, which is owned by seven major banks. Zelle allows users to transfer money to other users within minutes with no fee.
Does Early Warning Services affect your credit score?
Early Warning Services provides information to banks and financial institutions about your banking history, but it does not provide a credit score. You can request one free copy of your consumer report from the company every 12 months. Requesting a consumer report does not hurt your credit score.
The Bottom Line
As a fintech company, Early Warning Services is regularly adding to its service and product offerings that help banks minimize risk and fraud. It also provides a number of services to consumers, including its Zelle money transfer app and its consumer reports.
Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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Consumer Financial Protection Bureau. “Early Warning Services.”
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Zelle. “What’s Zelle®? Glad You Asked!”
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Early Warning Services. “Our Products Work Together—for You.”
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Zelle. “Zelle® Moves Record $75 Billion in 2017.”
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Early Warning Services. “About Us Page.”
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Early Warning Services. “Example Report,” Page 7.
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Early Warning Services. “Let’s Get Your Questions Answered: Your Consumer Report.”
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Early Warning Services. “A Summary of Your Rights Under the Fair Credit Reporting Act,” Page 1.
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AnnualCreditReport.com. “All About Credit Reports.”
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Zelle. “Are There Any Fees to Send Money Using Zelle®?”
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