Have you ever wondered what happens behind the scenes when you hand over a personal check to pay for your items at Target? It‘s not as simple as the cashier just accepting your check and depositing it at the bank. In fact, Target relies on sophisticated risk assessment services to analyze each check in real-time and determine whether to approve or decline the payment.
The two main companies that provide this service to major retailers are Telecheck and Certegy. So which one does Target use – Telecheck, Certegy, or both? I dug into Target‘s check processing policies and practices to get you the full scoop. Here‘s everything you need to know about paying by check at Target stores.
How Do Telecheck and Certegy Work?
Before we get into the specifics of Target‘s system, let‘s take a step back and explain what Telecheck and Certegy actually do. These companies are not banks or financial institutions themselves. Rather, they provide advanced risk management and check verification services to retailers, corporations, government entities and other organizations that accept checks as a form of payment.
When you write a check to a merchant that uses Telecheck or Certegy, the check isn‘t just blindly accepted. Instead, it goes through a rapid computerized vetting process that analyzes it for signs of fraud or insufficient funds. Using complex predictive models and a vast database of checking and risk management records, Telecheck and Certegy are able to make a real-time recommendation to the merchant to accept or decline the check.
This benefits both the customer and the retailer. For shoppers, it means a faster, more secure checkout experience without delays. Telecheck and Certegy process most checks electronically in a matter of seconds. The systems also protect consumers from identity theft and having their checking account compromised.
On the flip side, check verification is critical for retailers to avoid losing money on bad checks that will bounce due to lack of funds. By utilizing Telecheck and Certegy‘s risk-assessment technology, stores can confidently accept verified checks without fear of them being returned. It saves them the major headaches and costs involved with tracking down customers to collect payment on checks that don‘t clear.
Target‘s Check Payment Policies
Now that you have a basic understanding of Telecheck and Certegy, let‘s turn our attention to Target specifically. The mega retailer does allow customers to pay by personal check at all Target store locations, as well as on Target.com for online orders. However, Target doesn‘t directly process those check payments themselves.
Instead, Target uses Certegy to verify all checks in-store before accepting them as payment. This policy has been in place for over a decade, dating back to at least 2010. Some Target stores may also have Telecheck services available as a backup check verification system. But for the most part, Certegy is Target‘s primary provider for assessing the risk of check payments.
Here‘s how it works: When you hand your check to the Target cashier, they will scan it through their point-of-sale system which is integrated with Certegy‘s secure software platform. Certegy rapidly runs your check data through its proprietary risk models and determines an approval recommendation based on factors like your check writing history, past returned checks, unpaid debts, and other statistical measures.
If Certegy gives the greenlight, your check is immediately processed electronically and Target considers it a valid, approved form of payment. The funds will be transferred out of your checking account to Target, usually by the next business day.
The whole process is very fast and occurs in a matter of seconds while you‘re standing at the checkout lane. You likely won‘t even realize that Target is using a third-party verification system to analyze your check. To the customer, it will seem like Target is just accepting your check directly as they would with any other payment method.
However, if Certegy determines your check poses a high risk, it will instruct Target to decline the payment. This can happen for a number of reasons, which we‘ll cover in more detail later on. If your check is not approved, you‘ll need to provide another way to pay such as cash, credit card or debit card to complete your Target purchase.
Reasons Why Certegy May Decline Your Check at Target
Since Certegy utilizes complex algorithms and statistical models to generate an accept/decline decision on checks, the system can seem like a mysterious black box to consumers. Certegy keeps the specific details of its risk assessment techniques confidential. However, the company has shared some general guidance on the factors that could lead to a check being denied at the register.
Some of the top reasons why your check may not be approved by Certegy include:
1. Negative check writing history – If you‘ve bounced checks or written bad checks with insufficient funds in the past, Certegy will flag this activity and likely decline your payment.
2. Unpaid balances or debts – Outstanding returned checks or unpaid fees owed to a retailer or financial institution will show up on your Certegy record and can prevent check approval until resolved.
3. No records on file – Certegy maintains a massive database of consumer checking data, but if you‘re using a new account or one not already in their system, the lack of history may be seen as a potential risk.
4. Cashier error – Unfortunately, if a Target employee accidentally enters your information wrong when processing the check, it could cause a denial if your data doesn‘t match Certegy‘s records. This is rare but can happen occasionally.
5. Unusual checking activity – If your recent check writing patterns seem out of character or suspicious compared to your history, it may trip Certegy‘s fraud detection protocols.
6. Other undisclosed risk factors – Certegy doesn‘t publish its full list of risk factors, as doing so could enable potential scammers to game the system. But suffice to say their models look at a wide spectrum of data points and trends to render a decision.
It‘s important to note that Certegy does NOT factor in your credit score, credit card usage, income, or employment status when assessing a check. They are only looking at your direct history of writing checks and any negative checking incidents like bounced checks or fraud.
What to Do If Your Check is Declined by Certegy at Target
Having your check denied at checkout can be frustrating and embarrassing, especially if you believe there is an error or you weren‘t aware of any issues with your checking account. Don‘t panic – you have options to address the situation.
First and foremost, you‘ll need to complete your transaction at Target with a different form of payment. Target is simply following Certegy‘s outside recommendation and has no power to override the system if your check doesn‘t go through. Ask the cashier to suspend or cancel the check and pay for your purchase with cash or a card instead.
Then, you should contact Certegy directly to investigate the reason for the check denial. Certegy provides a toll free customer service hotline to call with any questions or concerns about your declined check:
Certegy Customer Support
Phone: 1-800-237-3826
Hours: Monday to Friday, 8am-10pm EST
When you call, a Certegy agent can look up your transaction using the reference number printed on your Target receipt or by using your check number and the date it occurred. They will walk through the factors that led to your check being declined, and make sure there are no inaccuracies in your profile.
If you believe any information on your Certegy report is wrong, you have the right to dispute it and get the record corrected. Certegy typically investigates and responds to consumer disputes within 30 days. You can also visit the Certegy website to access helpful FAQs and do an online lookup of your declined check.
Under the Fair Credit Reporting Act, you are legally entitled to a free copy of your Certegy report once every 12 months, even if your check wasn‘t declined. It‘s a good idea to periodically review your report to ensure everything is accurate and up to date. Contact Certegy to request your copy and they will mail it to you within 15 days.
Final Thoughts on Paying by Check at Target
While cash, credit and debit cards may be more common these days, checks are still welcome at Target thanks to their partnership with Certegy. The check verification process is usually seamless and gives shoppers a secure, convenient payment option. But like any risk-assessment model, Certegy‘s system isn‘t perfect and may sometimes decline a check in error.
If you find yourself in that situation, don‘t get too worked up. Follow up directly with Certegy‘s helpful customer support team to figure out what went wrong. They deal with these issues all the time and will work with you to ensure your check writing history and profile is fair and accurate.
In the meantime, it‘s wise to carry a backup payment method when shopping at Target or any retailer that uses Telecheck or Certegy, just in case your check hits a snag. And if your checking activity is quite limited, consider building up a longer history of successfully processed checks to avoid getting flagged as high risk due to a thin file.
With these tips, you can feel confident that your Target runs will be smooth sailing no matter how you choose to pay. Happy shopping!
