Ev
er had a check denied at the cash register? If so, you may be in the Telecheck system for a transaction you are unaware of.
Telecheck is a consumer reporting agency that collects, maintains and reports consumer information related to check writing transactions and bank accounts.
Telecheck allows merchants to screen checks to make a decision to accept or decline a check.
It guarantees to the merchant the full amount of a check approved through the Telecheck system and offers merchants a warranty service option to handle the collection of returned checks from consumers.
Some banks and credit unions will utilize Telecheck when deciding to open a checking account. This process may even be in addition to Chexsystems. Financial institutions are vigorously working to minimize fraud and risk on all levels.
How Telecheck Works
The information on your check is examined with Telecheck’s database. Telecheck utilizes some type of predictive risk scoring model that allows merchants to determine whether or not they should accept your check.
The analysis determines the probability of the check being returned for insufficient funds and the possibility of check fraud. Telecheck accesses its databases and evaluates the customer’s check writing history.
Check approval is contingent upon the consumer having no adverse information in Telecheck’s system and on the check writing patterns of the consumer. If you are in the Telechecks system you may not be able to write checks in certain businesses.
The merchant makes a determination to accept or decline your check based on Telecheck’s decision to guarantee the check for the merchant. If Telecheck tells the merchant they will not guarantee the check, then the merchant makes the decision to decline the check based on Telecheck’s “no guarantee”.
The merchant can always override Telecheck’s decision to not guarantee the transaction but that would mean the merchant takes on the risk if the check returns insufficient funds or some type of fraud is involved. Most merchants choose not to override Telecheck’s decision because they do not want to assume the risk.
A decline by Telecheck does not mean your check is bad
Telecheck does not have access to your bank account balance. Your check may be declined simply because Telecheck does not have sufficient information in their databases about you to complete the verification process. This does not mean you have done anything wrong.
Another reason your check may be declined is that you have an outstanding debt in Telecheck’s database. That database includes any merchant who uses Telecheck, not just the particular merchant where you were declined. Telecheck retains adverse information for 7 years.
Dispute Telecheck
Telecheck is considered a consumer reporting agency because they collect, store and sell consumer information. The Fair Credit Reporting Act (FCRA) governs consumer reporting agencies so you have the same remedies available to you as you would if disputing an item on your credit report.
Telecheck in some instances also acts as a debt collector. The Fair Debt Collection Practices Act (FDCPA) governs what Telecheck can do when collecting a debt.
If you write a check and the transaction is declined because of Telecheck, the clerk doing the transaction is supposed to give you a courtesy card with a seven-digit Record Number written on the front of the card. You may contact Telecheck with that Record Number to inquire about the transaction.
The major difference when disputing an item in Telecheck as opposed to Chexsystems, is that Telecheck will remove your negative record once the item is paid. Chexsystems may retain a negative item, paid or unpaid for up to five (5) years unless the bank tells them to remove the item or you successfully dispute the item.
Telecheck is a consumer reporting agency under the Fair Credit Reporting Act and you are entitled to a free annual file disclosure you can visit them at http://www.firstdata.com/telecheck/telecheck-declined-check.htm
The best way to get your Telecheck report is to write them
TeleCheck Services, Inc.
Attention: Consumer Resolutions-FA
P.O. Box 4514
Houston, TX 77210-4514
To verify your identity, Telecheck requests the following:
(1) a daytime contact phone number
(2) a copy of your driver’s license
(3) your social security number
(4) a voided check
(5) a copy of a tax or utility bill reflecting your current address
Declined Check Information for Check Writers
1-800-366-2425
Returned Check Collection
1-800-366-1048
Call to get your Free Annual File Disclosure pursuant to the Fair Credit Reporting Act
1-800-366-2425
Fraud, Identity Theft, Forgery
1-800-710-9898
Headquarters
TeleCheck Services, Inc.
5251 Westheimer
Houston, Texas 77056
I’d like to leave a reply. I have/had no idea who these people are, Telecheck. I have never had a returned check unpaid, yet “Telecheck” refused a check on behalf of Nordstrom’s that I wrote. I was not given a 7 code number by the clerk. I called Telecheck, and they told me, through a recording, that they’re simply suspicious of me, or unsure of me. Whichever is more politically correct. The bottom line is they have NOTHING on me except a judgement of character and behavior based on….oh, I don’t know…magic? Really? Guessing? Well, I have no idea who they are either; I am unsure and suspicious of Telecheck. So touche. I will no longer be writing any checks to ANY consumers whatsoever that utilizes this company called “Telecheck.” Where are we living? In Nazi, Germany or something? Shameful!
I can certainly understand your frustration. It is quite unfair to have a check refused simply because there is no information about you, which seems like the reason your check was declined. I suppose merchants such as Nordstrom have good reason to use Telecheck in order to curtail loss due to fraud but Telecheck can adversely affect good customers. You are entitled to your Telecheck file and it would be worth the time to see what information exists, or does not exist about you. You can order a free report once a year under the Fair Credit Reporting Act. If you write Telecheck requesting your free report you should inform them that one of their merchants is not following procedure by not giving you a courtesy card with the code number to contact a live person at Telecheck.
I have written checks at Save A Lot grocery store since it’s opening. Recently, the store is not accepting my check. I went to the bank and there is sufficient money in my account. The telephone number is a recording. I want to talk to someone from telecheck to
explain what it going on. As I can see from the numerous complaints, I am not alone.
Yes, unfortunately many consumers have the same story when it comes to Telecheck and they make it very difficult to speak to a live person. Their website does have a “frequently asked questions” section that may address some of your concerns and if that does not help you may want to order your telecheck report just to see what; if any, information is in your files.
I wrote a check at Walmart and it did not clear my bank because a payroll deposit bounced. I am still trying to get the payroll issue cleared up, but before I was aware of the problems I tried to write a check at the grocery store and it was declined. I am so thankful to telecheck, because instead of notifying me of the problem my bank tried to redeposit the payroll check and did not show my account being negative, yet they declined my check to Walmart.
I called telecheck when the check to the grocery store was declined, followed all of the prompts and spoke to a live person who explained why they denied my second check. I told them what was going on with the bank and they notified me that they would continue to present the check until they maxed out their attempts or the check cleared. I was then able to contact my bank and prevent them from presenting the check again and costing me returned check fees each time. Telecheck noted my account as to what date I would be making the check good and as soon as I do they claim they will clear my account. I’ll let you know how that works out.
I know it can be inconvenient, but I am glad for the service.