Telecheck utilizes some type of risk scoring model that allows merchants to determine whether or not they should accept a check from the check writer. Of course the check writer is not privy to this risk scoring model; however, it is known that during the authorization process, 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.
Dispute Telecheck
Telecheck is considered a consumer reporting agency because they collect, store and sell consumer information. The Fair Credit Reporting Act (FRCA) 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. www.telecheck.com
Declined Check Information for Check Writers 1-800-366-2425
Returned Check Collection 1-800-366-2425
Free annual file disclosure pursuant to the Fair Credit Reporting Act 1-800-TELECHECK
Headquarters TeleCheck Services, Inc. 5251 Westheimer Houston, Texas 77056
Telecheck is a consumer reporting agency that collects, stores and reports consumer information related to check writing transactions and bank accounts. Telecheck allows merchants to screen checks from consumers in order to make a decision whether or not to accept a check.
Telecheck also offers merchants a warranty service option to handle the collection of returned checks. Some banks and credit unions will also run your information through Telecheck in addition to Chexsystems when opening a checking account.
More Resources
Open a New Checking Account Some banks do not use Chexsystems and some banks who do use Chexsystems practice second chance banking.