The Telecheck system verifies paper checks and turns them into electronic versions. The cashier runs the paper check through the system, which then produces a receipt similar to a credit card signature slip. The check writer signs the receipt to authorize the transaction.
Telecheck streamlines the check cashing process for retailers by presenting the check electronically. The system also helps the retailer decide whether or not to accept the check based historical information about the checking account. If the account has outstanding debt or shows signs of fraudulent activity, TeleCheck may decline the check. This helps protect the business against accepting a check that is not likely to clear.