TeleCheck

What TeleCheck is

TeleCheck is a check and bank-account screening and payment service used by businesses. Its risk tools use check-writer history to advise whether to accept or decline a transaction. That recommendation helps you make a decision at checkout, but it is not proof that the customer has enough money in the account.

TeleCheck also supports electronic check acceptance and ACH payments. When a customer pays by check through TeleCheck, the customer authorizes the transaction on paper or electronically, and the check information and amount are processed electronically.

A check-screening decision is not the same as proof of funds or a guarantee against loss.

How TeleCheck works

For a check transaction, TeleCheck captures banking information and the check amount. The customer signs an authorization, and the transaction is presented to the customer's bank electronically. The customer receives a receipt, and funds are withdrawn from the customer's checking account within one to two business days.

That timing describes the withdrawal from the customer's account, not a guaranteed deposit date for your business. TeleCheck also offers electronic check acceptance that converts a paper check into an electronic transaction at the point of sale, as well as online and mobile check acceptance options.

What it means for your costs and risk

TeleCheck is not a card-network fee, and its public service descriptions do not state a standard merchant price. Your business should compare the charges for the specific service with the cost of handling checks, returned payments and bad-check losses. Do not assume risk screening alone covers a loss.

Some TeleCheck services include check warranties intended to protect merchants against bad-check losses. Coverage depends on the service provided, so identify which transactions qualify and what losses the warranty covers before counting it as protection. A risk recommendation and a warranty are separate things.

TeleCheck and check guarantee

TeleCheck is a specific brand and service, while a check guarantee describes protection against losses from certain accepted checks. TeleCheck offers risk screening, payment processing and, for some merchants, check warranties. A check-screening response by itself does not establish that a transaction is covered by a warranty.

When comparing TeleCheck with another check guarantee service, separate the screening decision from the loss protection. Confirm which checks are covered, what happens after a returned check and whether electronic check or ACH transactions follow different terms.

What you can actually change

TeleCheck does not publish a standard merchant fee or a universal warranty rule. You can evaluate the cost and protection of the particular service your business uses.

• Compare TeleCheck charges with the cost of your current check-handling process and returned payments.
• Confirm which transaction types qualify for a check warranty and what losses it covers.
• Reconcile check transactions using the check number, amount and location shown on the customer's bank statement.
• Review whether electronic check acceptance or ACH fits the way your customers pay.

1. 01
   List each charge. Separate TeleCheck service charges by screening, processing and any warranty coverage your business receives.
2. 02
   Verify warranty terms. Match the covered transaction types and loss conditions to the checks your business accepts.
3. 03
   Reconcile check activity. Use check numbers, amounts and transaction locations to match customer payments with your records.

Frequently asked questions