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 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
Lack of Data on History
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.