Telecheck uses a database of bank records to verify the financial status and debt owed by individual check writers. They use this information to discover the patterns of legitimate and illegitimate checks being written by an individual. Using this information, they can verify debt or lack thereof. Telecheck can also identify whether or not a check writer appears to be at risk of writing a business a fraudulent check based on their financial behaviors as compared to their analytic database.Continue Reading
Merchants and businesses submits scans of check they receive to Telecheck before cashing them. Telecheck analyzes the information on these scans to identify the banks and accounts the checks are linked to. Using their established banking transaction database, Telecheck attempts to match the individual who wrote the check as well as the account the check was written from for past fraudulent behavior.
Collecting all the available information about the individual, their account and previous financial behavior, Telecheck compares this information with established financial risk patterns. If the individual or account shows behaviors that suggest cashing the check might be risky, Telecheck marks the check with a Code 3 and sends this information back to the merchant or business. This Code 3 marking only predicts that the check might be fraudulent but does not guarantee that the check is bad.Learn more about Business Resources