TeleChek Verifying Funds

The Wal-Mart in our community has started doing Remote Capture Deposits. After the deposits are made, the deposit "batches" are sent to TeleChek who turns around and calls banks for verification of funds on the checks (which they do not physically have). This is tying up our bookkeeping department as TeleChek usually has 20 - 30 checks to verify when they call. Short of writing a policy & procedures to not verify funds (we still want to help our local merchants), are there any guidelines on verifying funds to third parties?

Hang up.

But what would they do with those checks that aren't "verified"?? Would your customer now be on a "black list" to not be able to write checks to anyone that Telecheck verifies for?? Just a thought. . .

One of the other real problems we are having with this is that if the check will not clear at the moment TeleChek calls, but a deposit is later made so that the check does clear, or they have overdraft protection to clear the check, TeleChek puts down a negative response for our customer in their database. We do not feel this is fair to our customers and should not be noted as negative information.

So tell them you don't supply that information - if they want to know if a check will clear, tell them to present it at a banking center. We generally only will supply check clearing info over the phone (with a fax of the check) to other FI's at this time.

Thank you all for your input. It is greatly appreciated (especially the "hang up!")

At my previous FI, they only did non-FI verifications through a 1-900 number. You were charged per minute for verifications. We sent all of the verifications from places like ChexSystems to that number. However, if a store called and had the customer there we would verify for free over the phone or if the customer had let us know in advance they were writing a large check, we'd verify for free. Whether we waived the fee for local stores was on an exception basis.

Now we're talkin'! Thanks.