TeleCheck reports on your bank history. It has links with your credit history, but it does not actually provide credit information. It reports on your banking history so that companies and banks may see if you are a viable customer. It also helps them decide if they should accept checks from you and/or allow you to open an account with them. It is not directly linked to your credit rating, but usually, if you have a poor bank history, you probably have a poor credit rating too.

Why Are Banks And Companies Checking Up On My Banking History?

A person may have a reasonable credit rating, but a terrible banking record. The same is true in reverse. Usually, when a person has a poor credit rating, they also have a poor banking history, but that is not always the case. That is why some companies and banks are interested in your banking history.

A company may be unwilling to allow a person to open an account if TeleCheck deems that person as a risk. The company may be unwilling to accept checks from that person, and banks may be unwilling to either open accounts, or open accounts with privileges for people they deem to be a risk.

Banks and companies may use TeleCheck, Early Warning Services or ChexSystems. Some companies and banks use all three to get a better view of your banking behavior.

Read the differences between TeleCheck, EWS, and ChexSystems.

Risk And Other Reasons Why You Were Denied

TeleCheck will not give you a full risk report. They examine over one-hundred factors to determine if you are a risk, but they do not give you a personally itemized risk report. If you are denied the chance to open an account or transact any sort of business because of TeleCheck, then they will happily send you a free report giving the top three reasons why you were rejected, but they will not explain how they came up with their risk score and what factors they used to come to their conclusion.

We will cover the “Reasons” you may have been denied a little later, but for now, understand that your risk score will not be explained by either TeleCheck or the company/bank that uses TeleCheck.

They claim they use over 100 factors to determine if you are a risk, and they give you a score as to how risky you appear. For example, TeleCheck has collected information on what people buy when they steal a credit card, debit card, or check book. If you happen to buy similar items in a sudden shopping spree, TeleCheck may increase your risk score. It is really as unfair as that, which is why TeleCheck has a massive number of complaints against it, and why the US government has taken steps to have them resolve their disputes a little more fairly.

What Reasons Do They Give For You Being Denied?

One reason may be your risk score, as discussed above, but there are other reasons why you may be denied, and they are known by most people as “Blemishes.” These are things that appear on your report that make you look bad. They make you look like a potentially bad customer and/or a person that mismanages their bank accounts. Here are a few of the most common blemishes that may count towards TeleCheck’s reason for denying your check.

Your Risk Score Is Too High

This is the factor that has already been discussed. Due to recent government interventions, it is now easier to raise and win a dispute with the company if you are denied because of your risk score.

We have a guide on what to do if you are in the ChexSystems database and many of the points translate over to raising a dispute with TeleCheck. None of the banking history companies will charge you for raising a dispute. It is quite possible to have blemishes removed from your report if you win the dispute, where you may then go back to the bank/company that denied you the first time and you may try again.

You Are In Poor Standing With Your Previous Bank

If your previous bank claims that you caused them trouble with bounced checks, overdrawing, and things of that nature, then such a blemish may make it difficult for you to open accounts with businesses and banks, and TeleCheck may deny your checks.

You Have Little Or No Banking History

A little like your credit rating, if you have very little history dealing with banks, then you are seen as a slightly bigger risk than a person that has had experience with bank accounts. They base their predictions about your behavior on your past banking experiences, and they cannot do that if you do not have a banking history.

You Only Hold A Work-Only SSN

If you have a work-only social security number, then sometimes TeleCheck deems this as enough reason to deny your check. It is not always the case, as they do examine other factors, but the fact is that some banks and companies will not allow you to open accounts if you only have a work-only social security number.

You Have Tried To Open Too Many Bank Accounts In 12 Months

Your credit rating suffers if you apply for too many loans within a six-month period, and a similar thing is true if you try to apply for too many bank accounts within a 12-month period.

You Placed A Voluntary Hold On Your Banking History

It may seem unfair. You may have done it because you suspected fraud or something similar. Nevertheless, if you suspect fraud, then the banks and other companies have reason to suspect there may be fraud on your account. If you resolve your issues and wait more than six months, then placing a voluntary hold on your account won’t matter as much to banks and companies, and TeleCheck will start allowing you to write checks.

What If I Have Money In My Account?



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Even if you have money in your account, TeleCheck may still deny your check. They do not know how much money you have in your account, and even if they did, they would still deny your check. They are not basing their decision on how much money you have in your bank at the time you wrote the check. Keeping money in your account is a sign of good banking behavior, but the fact money is in your account will not stop TeleCheck denying your check.