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Telecheck - How It Works

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As the back-to-school and holiday seasons begin, I get a lot of emails regarding Telecheck as checks are denied at POS (Point-of-Sale).

My personal advice is to stop writing checks - unless you absolutely have to. After fraud with Chase Bank, I may write 2 or 3 checks a year.


When businesses partner with Telecheck, they guarantee the checks you write. This means if a check bounces, Telecheck will reimburse the business, and then go after you for the check amount and fee.


They have been sued left and right for their shady business practices.


If your check is denied - even though you have funds in the bank - it is their individual, business decision. Over the last 15 years since I've been helping with check related issues, I have yet to get a consistent, firm answer from them why they decline checks. It appears to be their subjective decision. (Keep in mind, that a business is not legally obligated to accept your check).


Telecheck, however, must follow state and federal credit reporting and collection laws, and this seems to be where they get in trouble.


They factor here on this forum, because many of the second-chance checking accounts we recommend use Telecheck for approvals. If you are having problems with them, the first step is to order your free annual report. Unfortunately, they still use snail mail.


Request Telecheck Annual Report



***In this age of data collection, I refuse to send them a voided check. All they need to verify your identity is Name, Address, SSN, and ID Number. They don't need your phone number, where you bank or your employer's number. Reply to this post if you have difficulty getting your annual report.


Note: I am verifying again if they report negatives for the full 7 years, and if they remove entries once they are paid.

Edited by tmcgill

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