If you‘re planning to pay by personal check at your local CVS Pharmacy, it‘s important to know that like many major retailers, CVS uses a third-party check verification service to reduce the risk of accepting bad checks. Specifically, CVS relies on Telecheck to analyze check payments and approve or decline them in real-time at the point of sale.
In this comprehensive guide, we‘ll explain exactly how the Telecheck system works at CVS locations, reasons why your check might get rejected, and steps you can take to improve your chances of check acceptance. Plus, we‘ll take a closer look at CVS‘s overall check-writing policies to help you shop with confidence.
What Is Telecheck and How Does It Work?
Telecheck is one of the largest check acceptance companies in the United States. Many retailers and other businesses contract with Telecheck to help them manage the risks involved with accepting checks and avoid losses from returned checks due to insufficient funds, closed accounts, or fraud.
When you write a check at a merchant that uses Telecheck, the cashier will scan your check through a check reader or enter the banking information manually. This sends your check data electronically to Telecheck‘s system for real-time verification.
Telecheck maintains an extensive database with information about check-writing histories for millions of U.S. consumers and businesses. When a check is submitted for approval, Telecheck‘s risk assessment model quickly analyzes the checking account data against their records to look for potential red flags.
Some of the key factors Telecheck evaluates include:
- Frequency of returned checks and unpaid check debts
- Current checking account status (e.g. open, closed, flagged for fraud)
- Length of time the checking account has been open
- The check-writer‘s overall check-writing patterns and activity
If the account appears to be in good standing with no major warning signs, Telecheck will approve the check almost instantly and guarantee payment to the merchant. This means even if the check later bounces, Telecheck will cover the loss, not the store. The merchant pays Telecheck a small fee for each check processed.
Why Did CVS Choose Telecheck Over Other Check Verification Services?
There are several major players in the check verification industry besides Telecheck, including Certegy Check Services, CrossCheck, and Global Payments Check Services. However, CVS has an exclusive contract with Telecheck to provide all of its check verification needs.
While the pharmacy chain hasn‘t publicly stated its reason for choosing Telecheck, industry experts believe it likely comes down to the strength of Telecheck‘s risk assessment technology and its long track record of accurately identifying high-risk checks.
With over 50 years in the business, Telecheck is one of the most experienced check acceptance companies. It also boasts one of the largest negative check databases to analyze check-writing histories. This enables Telecheck to catch more bad checks and save retailers more money.
Cost is likely another factor in CVS‘s choice of Telecheck. While the exact fees are negotiated privately, Telecheck is known to offer competitive rates, especially for large national accounts like CVS that process a high volume of check transactions.
How to Ensure Your Check Gets Approved by Telecheck at CVS
Since Telecheck relies heavily on a consumer‘s past check-writing history to assess risk, the best thing you can do to improve your chances of check approval at CVS is to practice responsible check-writing habits with your bank account.
This means consistently writing checks only when you have sufficient funds in your account to cover them. Avoid overdrafts or bounced checks at all costs. If you have had returned checks in the past, make sure you paid off those obligations as quickly as possible.
It‘s also important to verify that all of the information printed on your checks is accurate and up-to-date, especially if you have recently moved or switched banks. Discrepancies between the check information and Telecheck‘s database records could lead to an approval delay or decline.
If you know that you have had check issues in the past that could cause Telecheck to flag your account, you may be able to proactively contact Telecheck to clear up any outdated or inaccurate negative information. Telecheck provides a help line where agents can verify your identity and assist in updating your check-writing history.
What to Do If Your Check is Declined by Telecheck at CVS
If you attempt to pay by check at CVS but get denied by Telecheck, the first thing to do is stay calm. Check declines can happen for a variety of reasons, and a denial doesn‘t necessarily mean you have done anything wrong.
In most cases, the CVS cashier will not know the specific reason for the check denial, as Telecheck does not share detailed decline info with merchants. However, you should receive a receipt with a Telecheck phone number to call for assistance.
A Telecheck agent will be able to look up the transaction and give you more info about why the check was not approved. Depending on the situation, they may be able to lift the negative flag on your account after verifying your identity and updating your records.
Sometimes check declines happen due to simple data mismatches or communication errors between Telecheck‘s system and your bank. To rule this out, it‘s a good idea to contact your bank to verify that your account info matches your check and that there are no issues on their end.
If Telecheck determines there is a valid reason to block your check-writing privileges based on a history of returned checks or other red flags, you may need to use an alternative payment method, such as cash, credit card or debit card, until you can successfully resolve the outstanding issues with Telecheck.
CVS Check Writing Policies and Limits
In addition to the Telecheck verification process, CVS has its own policies regarding what types of checks it accepts and whether there are any limits on check payments. According to CVS, these are the general check acceptance rules across all locations:
- Personal checks only – no business, payroll, or government checks
- Check amount cannot exceed the total purchase amount
- Checks must be made payable to the specific CVS Pharmacy location
- Valid, unexpired U.S. government-issued photo ID (driver‘s license, state ID card, passport, military ID) must be presented at time of purchase
- Check-writer must be present (no third-party checks)
While CVS does not publish any specific dollar limits on the amount of a purchase that can be paid by check, store managers have the discretion to deny any transaction they deem high-risk or suspicious. Some CVS locations may also limit check payments to the amount of cash kept in the register.
How Do Other Retailers‘ Check Policies Compare to CVS?
Among major pharmacy and drugstore chains, check policies tend to be fairly similar, with most relying on a partner like Telecheck or Certegy for electronic check verification and guarantee services.
For example, Walgreens uses Certegy, while Rite Aid uses Telecheck. Walmart also uses Telecheck for in-store check payments. The specific rules and processes may vary slightly by retailer, but the overall goal is the same – to reduce risk and prevent check fraud.
One notable difference at Walmart is that in addition to Telecheck approval, check-writers must also have their driver‘s license or government-issued photo ID scanned into Walmart‘s own transaction database. This extra step allows Walmart to flag any check-writers who have previously written bad checks in their stores, even if they were not reported to Telecheck.
Retailers that use Certegy, like Walgreens, may have slightly different check limits or ID requirements than those using Telecheck. However, Certegy‘s computerized check verification model functions very similarly to Telecheck in most respects.
Ultimately, while each store‘s program has minor variations, being a responsible check-writer and communicating proactively with both the retailer and verification provider is the best way to ensure a smooth in-store checkout experience no matter where you shop.
Advantages and Disadvantages of Retailers Using Third-Party Check Verification
From a business perspective, using a check guarantee service like Telecheck offers several key benefits for retailers. Most importantly, it helps protect against financial losses from bad checks and fraud. It also speeds up the check-out process and helps ward off professional bad check artists who may hit multiple stores.
However, some consumer advocates argue that the third-party verification process unfairly penalizes customers who may have made an honest mistake or an isolated instance of a bounced check. In some cases, negative check information can remain on a consumer‘s Telecheck record for years, impacting their ability to pay by check even after they resolve the initial issue.
There have also been complaints of errors in Telecheck‘s database that caused checks to be wrongly declined due to outdated or inaccurate information. While these mistakes can usually be corrected through Telecheck‘s resolution process, it can be a hassle and inconvenience for affected customers.
Another potential drawback is that check verification systems don‘t catch every fraudulent check. Determined criminals can still find ways to slip bad checks past the safeguards. So while services like Telecheck greatly reduce risk, they aren‘t an infallible solution for retailers.
Paying at CVS Without a Check
If you don‘t have a check, prefer not to write one, or have trouble getting approved by Telecheck, there are plenty of other easy ways to pay at CVS. All locations accept cash as well as credit cards and debit cards from major issuers like Visa, Mastercard, American Express, and Discover.
If you have a CVS ExtraCare rewards card, you can also use your ExtraBucks Rewards – the 2% back in store credit you earn on most purchases – to pay for future transactions. Some CVS locations may also accept contactless payment methods like Apple Pay or Google Pay.
For prescription payments, CVS Pharmacy accepts most major health insurance plans, FSA and HSA cards. You also have the option to sign up for the CVS ScriptSync program, which lets you order and prepay for 90-day supplies of your regular maintenance medications online or through the CVS Pharmacy app.
Final Word
While checks are not as popular as they once were, they remain a convenient and low-cost payment option preferred by many consumers, especially for larger transactions. For those who like to pay by check, the Telecheck verification process at CVS and other major retailers adds an extra layer of protection and peace of mind.
By understanding how Telecheck works and taking steps to maintain a positive check-writing history, you can minimize the risk of declined checks and enjoy the benefits of this classic payment method. And if you do experience an issue, working with Telecheck and CVS to resolve it promptly will go a long way in preventing any future problems at the checkout counter.
