TeleCheck is a term with a broader meaning that plays a significant role in your banking life. Considering numerous reasons, it can either make your check transactions or break your check transactions. You may have your denied check in your hand even with sufficient funds in your bank account. This might lead you to ask why was your check denied by Telecheck.
In today’s times, around 374,000 merchants invest their trust in TeleCheck’s statistics while approving a check, especially those that do not use ChexSystems. Therefore, it becomes important for every individual to learn about the reasons for denied checks by TeleCheck to safeguard themself from being a victim. Stores like Walmart, Walgreens, or Kmart also use TeleCheck.
TeleCheck provides a specific code to a consumer while declining their check, making it easy for them to find the cause of such rejection. This article will bring into the limelight why your check was denied by TeleCheck in a broader sense. It will obliquely help you in eliminating the causes of such an act.
7 Reasons Why Your Check Was Declined By TeleCheck
TeleCheck has never really leaked the exact reasons on the grounds of which the system denies the check; however, many aspects can leave a great impact on your check debt history which are listed below:
1. Risk Variables
When the customer makes continuous transactions, TeleCheck is likely to analyze that particular client’s banking behavior and financial life. It can be done on the grounds of various factors, such as what products are usually bought, how much money is likely to be spent, at what stores maximum of transactions is made, etc.
Every transaction made by the customer is taken as a new parameter to understand the basic etiquettes. However, any unusual activity by that account creates a suspicion in the system’s statistics, and that check ought to be denied by TeleCheck.
Also, read What Is ChexSystems & How Does It Work?
2. Controller Error
TeleCheck is a high-technology-based company with advanced features and a reliable system. Though it is an automated procedure, the matter is that it is still controlled solely by humans.
Any misprinted information on the identification card, miskeyed data by the cashier, or multiple check writers linked to a single account with one of them with a bad check history can be a reason for your check being denied by TeleCheck.
3. Inadequate/Insufficient History
Telecheck is most likely to deny a check for being approved because of having limited or insufficient history. It does not consider a particular check a negative or bad check but does disapprove on the grounds of not having sufficient past to prove its reliability.
Today, owning a good history is a prerequisite, even if you are opening a new account or applying for a credit card. That is why TeleCheck disapproves of any check with inadequate history with a primary motive to secure most merchants’ risk factors.
4. Unpaid Debt
If any overdraft fee or the past debt has ever remained unpaid by you, this can be a big hurdle on the way to your check being approved by TeleCheck. TeleCheck keeps an eye on your every debt, so a check with a history of unpaid debt, overdraft fees, or late payments can be declined by TeleCheck.
5. Past History
If you are holding an account with a bad history, there is a huge tendency that your check will be declined or rejected by TeleCheck. Bad history consists of writing checks with insufficient funds in the checking account or floating a check for a few days until the next paycheck is received. TeleCheck examines your every transaction and regularly observes your account’s statistics, intending to guard the merchants and decrease their risk factors.
6. Identity Theft
Being a victim of fraud can also be a threat to you because TeleCheck will decline all of your check numbers. In other words, if your identification card or driving license is stolen by someone and is likely to be misused for checking fraud(forgery or abandonment), you tend to file a report. The moment you file a report, that information is passed on to TeleCheck.
Although TeleCheck is a fast action to ensure that a criminal undertakes no fraudulent activity, it can put a hold on your check transactions until everything is sorted.
TeleCheck uses another concept of ‘Risk Decisioning’ to decide whether a check is safe to approve or not. When you write a check, the TeleCheck system processes it. It examines whether a check fits in the basic ‘risk profile parameter’ regarding all the purchases a criminal is likely to make or not.
TeleCheck can also be denied your check based on multiple risk variables listed in a risk model, which are not primarily based on evidence of unpaid debt.
Reasons For Decline Codes
Many people face a decline code at Walmart and do not understand what did the do wrong. In this situation, it would be helpful if you knew what the code means so that you can solve it later.
Reasons for Decline Code 01
- Suspected Fraud
- Insufficient Funds
- Stolen Card
- Expired Card
- Invalid CVN
Reasons for Decline Code 02
- Issuer of the card is declining the transaction.
- Unusual activity on the card.
- Sudden large purchase.
Reasons for Decline Code 04
- Means- Pick Up Card (No Fraud)
- Card was reported lost or stolen by the owner with no fraudulent issue.
- Possible fraud.
Reasons for Decline Code 05
- Means- Do not honor the purchase
- Insufficient funds
- Credentials mismatch
- Suspicioud activity
- Transaction with a foreign based merchant.
Reasons for Decline Code 51
- Insufficinent funds
- Credit Limit Exceeded
Reasons for Decline Code 54
- Bank is not allowing the transaction.
- Credit card expiration date has passed.
Reasons for Decline 57
- Card issuer is not permitting the transaction.
- Card Configuration is not correct.
Reasons for Decline 65
- Exceeded credit limit
- Insufficient funds
Reasons for Decline 93
- Means- Violation, Cannot Complete
- Issuer need the user to contact the bank
TeleCheck is a massive system that comprises multiple elements, including how it works, its significance, the verification process, filing a dispute, and much more. This article wraps up the most conventional reasons for a check being denied by TeleCheck. It is recommended to give a thorough read to each pointer and try to ignore such acts from your end.