If you‘ve recently tried to pay for a purchase by check at your local Rite Aid, you may have been surprised to have the cashier inform you that your check was declined. Even if you‘re certain you have sufficient funds in your account, Rite Aid may not be able to accept your check. This is likely because, like many retailers, Rite Aid uses a third-party check verification service to screen for potential check fraud and bad checks.
So which check verification service does Rite Aid use – Telecheck or Certegy? I‘ve thoroughly researched this question and have the answer for you. As of 2023, Rite Aid uses Certegy for all check verification in its stores nationwide. While Telecheck is another leading check verification provider, they do not currently have a contract with Rite Aid.
But what exactly is Certegy, and why might they have declined your check payment? More importantly, what can you do as a consumer to avoid problems with check verification and ensure your checks are approved at Rite Aid? As a retail and consumer expert, I‘ll share my knowledge and insights to help you successfully navigate the world of check payments.
What Are Check Verification Services Like Telecheck and Certegy?
When a retailer accepts a check as payment, they are essentially extending a small loan to the consumer until the check clears and the funds are transferred from the checking account. This puts the retailer at risk of losses if the check bounces due to Non-Sufficient Funds (NSF), a closed account, or if the check is fraudulent or stolen.
To mitigate these risks, many retailers contract with third-party check verification services. The two biggest names in this space are Telecheck (owned by FirstData) and Certegy (a subsidiary of FIS Global). These companies maintain extensive databases of checking account holder information and use advanced predictive modeling to assess the risk that a given check will be returned.
When you write a check at a participating retailer like Rite Aid, they will scan the check and instantly transmit key details (your name, address, driver‘s license number, checking account details, etc.) to Certegy. Certegy‘s risk-assessment engine will then run these inputs through their proprietary algorithms and generate an instant approve/decline decision. The whole process typically takes just a few seconds.
If Certegy gives the all-clear, the check is accepted, you get your merchandise, and the funds will be electronically debited from your account, usually within 1-2 business days. However, if Certegy spots any red flags that suggest the check is high-risk, they will instruct the merchant to decline the transaction. The cashier is not able to override Certegy‘s decision.
While most customers experience no issues with Certegy, a significant number of checks do end up being declined. According to a 2021 report from the Federal Reserve:
- An estimated 1.03 billion checks were run through the top three check verification services (Certegy, Telecheck, and CrossCheck) in 2021.
- Of these, approximately 1.52% or 15.7 million checks were declined.
- Certegy has the highest market share, processing around 60% of all verified checks.
So if you do the math, Certegy alone is likely declining over 9 million checks per year. That‘s a lot of frustrated customers! While some proportion of these declines are legitimately fraudulent checks being stopped, many are believed to be false positives – real checks from real customers that get incorrectly flagged by Certegy‘s system.
Why Did Certegy Decline My Check at Rite Aid?
There are a few main reasons why Certegy may have declined your check at Rite Aid:
1. Past bounced checks or unpaid debts. Certegy maintains records of your check writing history with all of its merchant clients. If you‘ve had checks returned in the past for NSF, a closed account, or other reasons, this history could cause Certegy to decline future checks. Negative records can haunt you for years.
2. Suspicious account activity. Certegy‘s algorithms are on the lookout for any unusual patterns that could signal fraud. A sudden spike in check-writing frequency, checks from new or out-of-state retailers, or writing checks for much higher dollar amounts than usual could all be red flags.
3. Lack of check writing history. Paradoxically, having little or no prior history of approved checks in Certegy‘s system can also lead to declines. The algorithms have no baseline data to confirm you‘re a reliable check-writer.
4. Fraud or identity theft. If a fraudster has been writing bad checks in your name, Certegy may be proactively declining checks to prevent further losses, even if you personally are not at fault.
Frustratingly, you can have adequate funds in your account, no unpaid bills, and no history of fraud and still have a check declined by Certegy. An estimated 2-4% of Certegy declines are "false positives" where their algorithms get it wrong according to the CFPB. However, some consumer advocates believe that number may be higher.
Steven Dash, a consumer protection attorney in New York, says "The predictive models used by check verification services like Certegy are opaque and consumers have little insight into or control over what data goes into determining their risk profile. It‘s far too common that I hear from clients who are angry and embarrassed about having legitimate checks wrongly declined."
Creative Ways to Bypass Certegy Check Declines
Now that you understand a bit more about how Certegy works and why they may decline checks, let‘s get into the actionable tips for avoiding problems and successfully paying by check at Rite Aid:
1. Pay with an alternative method. I know it‘s not the advice you want to hear, but the best way to avoid a Certegy check decline is to simply not pay by check. Cash, debit cards, credit cards, and mobile payment apps are all generally more reliable.
2. Request your check-writing history & dispute errors. Federal law (FCRA) requires Certegy to provide you one free copy of your consumer report each year and let you dispute any incorrect negative information. You can request yours here.
3. Keep check amounts small. For most retailers, Certegy doesn‘t verify checks under $50. If you break up larger purchases into multiple sub-$50 checks, they likely won‘t be run through Certegy at all. Just be sure to request this before the first check is scanned.
4. Pay inside with the cashier. Some Rite Aid locations can run your check as an electronic ACH payment that skips Certegy if you pay at the register. Drive-thru and self-checkout typically can‘t do this. Just ask the cashier if they can process an e-check payment for you.
5. Stick to your usual retailers and check amounts. Remember, Certegy is trying to detect fraud by spotting unusual spending patterns. Keep your check-writing consistent with historical norms and you‘re more likely to sail through.
6. Go to a different store. It may be inconvenient, but if you know another retailer near you doesn‘t use Certegy, you could take your check-paying business there instead. Here is a table comparing some top retailers and their check verification providers:
| Retailer | Check Verification Service |
|---|---|
| Walmart | Certegy |
| Target | Certegy |
| Costco | Certegy |
| Kmart | Certegy |
| Kroger | Certegy |
| Safeway | Certegy |
| Publix | Certegy |
| Walgreens | Telecheck |
| CVS | Telecheck |
| Dollar General | Telecheck |
| 7-Eleven | Telecheck |
| Sam‘s Club | Telecheck |
| Lowe‘s | SCAN |
| Home Depot | SCAN |
| Best Buy | Fiserv/CheckFreePay |
7. Opt-out of Certegy entirely. Few consumers know this, but you can request to have your checking account globally opted-out of Certegy. Just mail a request to:
Certegy Check Services, Inc.
Attn: OPTO
P.O. Box 30046
Tampa, FL 33630-3046
Include your name, address, phone number, and checking account details. Certegy will block all merchants from being able to use its verification services on your checks in the future. Note that this does not prevent the merchant from choosing to decline your check on their own.
The Future of Check Verification
While check usage has declined in recent years, millions of Americans still prefer paying by check. A 2022 report by the Federal Reserve shows there were still over 3.2 billion checks written in 2021, accounting for 7% of all non-cash payments.
So retailers like Rite Aid will undoubtedly continue to rely on check verification services for the foreseeable future to manage risks. However, these services are not without controversy. Consumer advocates argue the industry is ripe for more oversight and regulations to improve accuracy, transparency, and accountability.
The Consumer Financial Protection Bureau has logged over 4,800 consumer complaints against Certegy since 2013. Frequent issues include lack of investigation of disputes, outdated negative information, inaccurate identifying details, and failure to comply with FCRA regulations.
Retailers also may want more choice and flexibility. While the vast majority of check verification today goes through Certegy and Telecheck, some newer players are emerging. Fiserv/CheckFreePay and SCAN are gaining traction with some major retailers. These services purport to offer enhanced machine-learning and analytics capabilities to reduce false declines.
It remains to be seen whether Rite Aid will stick with Certegy long-term or explore partnerships with alternative check verification providers. But one thing is certain: as long as customers want to pay by check, having a reliable verification system that can deftly balance loss prevention and customer experience will be critical.
I hope this in-depth guide has given you a clearer understanding of how check verification works at Rite Aid with Certegy, and how you can avoid issues when paying by check. While dealing with a declined check is undoubtedly frustrating, by being proactive and informed, you can minimize the chances of it happening again.
