What is tele check and what does it do?

Question

What is tele check and what does it do?

Answer 1

Most people find out about TeleCheck when they have problems with check cashing or with opening up a bank account.  TeleCheck protects the financial institution in this manner but also protects you as the customer by reducing check fraud.  The link below contains Frequently Asked Questions and answers regarding TeleCheck.

Answer 2

The above answer is a good one... However, I attempted to purchase something with a check at a Telecheck vendor. It was denied through Telecheck. I was confused, as I have not had bounced check issues before. When I called Telecheck, they said that they had no info in their database on me, so that is why it was denied. Once I gave them my info, she said that it would take 10 days to update!

Answer 3

It is a check verification company.  Merchants subscribe to the service, and pay monthly and other fees.  In exchange, TeleCheck guarantees any checks the merchants accept for payment, provided the check was processed at the time of the transaction through Telecheck and an authorization was issued.

The system works on a negative database.  So, if you owe another merchant or a financial institution money for a bad check, your check will not be accepted for payment at any participating merchant.  

Also, financial institutions and individuals can report closed or compromised checking accounts to TeleCheck so that these will be not be accepted for payment at participating merchants.