Telecheck Product Information:

The TeleCheck® Check Verification Service helps merchants separate good check writers from bad ones allowing them to adopt a liberal check acceptance policy that will benefit both the merchants and their customers. Armed with national databases containing real-time information from more than 306,000 businesses and financial institutions, TeleCheck offers the most accurate check verification service in the industry. These databases provide merchants with continually updated information including bad check activity as it occurs, automated inquiries using the consumer’s identification (Driver’s License or State ID) as well as checking account data.

Flexible verification options allow merchants to determine what risk level is acceptable for their individual business. These verification systems reduce the likelihood of multiple fraudulent transactions and also help detect fraud in progress. Our advanced services make it possible for merchants to accept more checks, leading to increased sales, higher profits and greater customer satisfaction. The TeleCheck Check Verification service provides several options with which to tap into our resources.

How Does TeleCheck Work?

The basic Verification service quickly separates good and bad check risks using TeleCheck’s negative database. This database comprises more than 51 million bad check records, enabling merchants to make informed, reliable decisions regarding each check their business sees.

• Reduces the risk of fraudulent transactions
• Enables the adoption of a more liberal check acceptance policy
• Enables customization of verification services to meet your business needs
• Permits use of national databases with real-time information

The Verification with Risk Management service uses both TeleCheck’s check writer activity and negative databases along with its risk management system to identify not only bad check writing risks, but also good ones. The risk management service utilizes TeleCheck’s risk and predictive-modeling systems to analyze over 30 variables to predict the probability of a check being good. These assessment tools include regression modeling, neural networks, & decision tree analysis.

Explanation of Terms:

• Approval Code: Four digit numeric string indicating that TeleCheck approves the check. It must be displayed to the cashier so that it can be transcribed onto the check in compliance with TeleCheck warranty procedures.
• Call Center: This response is an instruction to the cashier to call the TeleCheck Authorization Center for assistance and a possible verbal approval.
• Code 3: This is a decline from TeleCheck. This code means that TeleCheck has no negative information on the check writer, but the check falls outside established guidelines that TeleCheck will guarantee at this time.
• Code 4: This is a decline code from TeleCheck. It means that TeleCheck has information on file that prevents warranty of any check from this writer or company.
• Error Retry: An issue exists involving data integrity. Usually, this is a data entry or keying error.
• Magnetic Ink Character Recognition (MICR): The numbers located on the bottom of a check.
• Toad: The �slang� term for the special symbols imbedded in a MICR.
• Warranty Plus: When a merchant signs on with TeleCheck for the paper guarantee product, TeleCheck will set a maximum warranty limit for that merchant. This limit is set at the merchant account level, and is handled administratively. TeleCheck can receive a transaction for an amount greater than the warranty limit, and if TeleCheck decides to guarantee that check, the TeleCheck system will reply with a four digit approval code followed by a �+� symbol. That transaction will be billed at a higher rate than other transactions.

Sample Report: