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Telecheck is a service that essentially informs retail and other businesses whether they should accept or decline a check from a paying customer. Frustratingly, there are times when a check is denied even when the customer knows that there is money in the account to pay the outstanding amount.

Understanding the way in which Telecheck operates, and how they decided who should be accepted and denied, is an important first step in ensuring that you are never in a situation where you are stuck because your check has been denied. Here at 007 Credit Agent, we have experience and knowledge of this important industry feature, and are ready to guide you through every step of the way.

How does TeleCheck Work?

Telecheck gathers and reports data related to bank accounts and checks. This is consumer information that is under the jurisdiction of work done by consumer reporting agencies. With this data, Telecheck is able to work with retailers to aid in accepting or denying customers based on their history.

Essentially, retailers are looking for ways to assess risk with each customer. Though they would like to please everyone by accepting checks immediately, it is in the retailers interest to have a service that gives an idea about how reliable the customer may be. Approval through the Telecheck service is akin to a guarantee that the retailer will receive the stated amount.

Additionally, it is not only retailers that utilize this service. Banks often take advantage of Telecheck to assess potential clients for checking accounts through their organization. This reduces fraud and minimizes risks for banks.


The Telecheck System

Telecheck offers a scanning service that immediately assesses the information on the check for reliability. This is a risk assessment for the merchant that offers immediate results, without having to wait until the customer has left the building. Telecheck data is based on various models of reliability, including check writing history and cases of fraud. The reputation of Telecheck is based on the reliability of it’s results, and ensuring each merchant receives the money is important for Telecheck operations. As such, their databases are safe and secure, with a thorough check of each potential customer.

Telecheck Refusal

Telecheck declines checks for a variety of reasons. It is not necessarily due to insufficient funds, which would seem like the most obvious reason to deny a check. Often, it is actually through lack of information that Telecheck decides to decline a check. On the other hand, information may suggest that debts are currently owed, and as such the check should not be accepted for suspicions of reliability.

Telecheck thorough record collection system means that they keep records for a distinct period of time. For potentially risky records, they are retained in the system for around 7 years. On the other hand, negative records may be erased in around 5 years.

Every individual case is different, and each business operates in their own unique way. Some may choose to accept checks in spite of warnings from Telecheck, while some may question the legitimacy of a check even with approval from Telecheck. Ultimately, it is the responsibility of the individual to determine what is accepted and not accepted.


Typical Reasons for Denial

Here at 007 Credit Agent, we look into the most common reasons for these issues to ensure you are prepared for the future and can understand reasons for potential denial, addressing them immediately.

Variables of Risk

Likelihood of fraud is the most common thing to look for with risk, and these may include past transactions, as well as transactions that are considered unusual for a check. If one of these is similar to your case, you should state it clearly in your letter with proof of evidence to show the reason why you couldn't settle your next payment.

Lack of Data on History

This may include a lack of check-writing in your history, which may not give telecheck enough to go on in offering approval. These reasons are understandable since technology often fails, and we can't do anything about it but wait until it works properly again.

Human Error

Typically, even with databases such as those used by telecheck, there are operational errors that may lead to erroneous denials. The check approval process goes through a number of regulations, with error at these points possible. Ensuring that the check is thorough may offer a reasonable solution.

Debt Records

Bank records may highlight non-sufficient fund transactions and overdrafts that do not work in your favor. This is one of the metrics used by Telecheck to ensure continuity and consistency of their reliable checks.

Telecheck History

The most common history directly associated with Telecheck is that concerned with check writing. Telecheck tracks all written checks, and a history of faulty checks can mean denial. This is where ensuring prudent financial output is paramount.


You may have a case of fraud against you, and it is worth checking on this possibility if your results seem off. Fraudulent transactions may affect telechecks rating of your checks, and as such, you may have been the victim of fraud.

Ultimately, it is important to plan ahead with your finances and ensure all bills are paid on time. This maintains a good record in Telecheck history, and will limit any denials of checks in the future. This will bring a range of positive benefits and you will be able to write checks with the peace of mind and assurance that you are not going to be declined.

If you are worried about any of these issues, or would like some more information about the way Telecheck influences your ability to purchase from retailers, get in touch with us today. Here at 007 Credit Agent, we look forward to helping you make the most of your financial future.