Q:

What services are offered by TeleCheck merchant services?

A:

Quick Answer

Telecheck provides electronic acceptance and processing of physical bank checks to retailers and financial institutions. Telecheck's electronic service collects and stores data to provide analytics toward debt verification, risk-based decisioning and the prevention of fraud.

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What services are offered by TeleCheck merchant services?
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Full Answer

Customers may use a personal check to pay for goods and services in the same manner they use a debit or credit card. At the point of sale, the merchant scans the check through Telecheck's reader, which captures the banking information, including the routing number, account number and amount of the check. Authorization occurs, and the customer signs the merchant's receipt before receiving his own copy. Telecheck requires the signature as authorization for the merchant to present the check to the bank electronically. The bank then electronically deposits the funds into the business account, and the customer sees the transaction on his bank statement within one to two business days.

Telecheck's service is largely based on risk-based decisioning, an analytical process that allows businesses to alleviate the high level of risk associated with accepting personal checks, reduce financial loss and better manage price control. Risk-based decisioning compares transactions against a collection of profiles derived from fraudulent versus legitimate check transactions.

Regulation E governs Telecheck's processes, along with other electronic payment processing, such as ATM cards and credit card transactions. Customers must file disputes with the bank within 60 days of the posting date of the transaction. When a bank reject a check, it may also be an alert to a customer that his account is overdrawn or compromised.

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