How TeleCheck Works
Understanding how merchant or other party (such as a utility company) can change your paper check into an electronic "debit" that is paid from your checking account, may help you to manage your finances. Learn more about TeleCheck Electronic Check Acceptance (ECA®).
Who is TeleCheck®
TeleCheck provides industry-leading check acceptance, check processing and risk analytics services to thousands of retailers and financial institutions. For nearly 40 years, TeleCheck has safeguarded businesses and financial institutions from check-related losses and fraud. Accepting checks has never been riskier; with TeleCheck, however, retailers are still able to offer check acceptance to consumers as a safe and secure payment option for purchases in stores, online, and over the phone.
What is the TeleCheck ECA® service?
The TeleCheck Electronic Check Acceptance® (ECA®) service converts a paper check into an electronic item at the point of sale. The ECA service allows retailers to accept checks as quickly, safely and easily as they accept credit cards. Think of it as a check without the paper.
How does it work?
When you present your check to the sales clerk, your check is authorized through a specially-designed, secure TeleCheck system that captures banking information and the amount of the check. Once the check is approved, you'll receive a receipt of the electronic transaction to sign. When you sign the receipt, you will receive a copy for your records along with your check to keep. It's that simple.
Why do you need my signature?
Signing the ECA receipt is similar to signing a credit card slip. Your signature on the receipt authorizes TeleCheck to present the check to your bank electronically and deposit the funds into the business account.
When will the funds be withdrawn from my account?
An ECA transaction takes the same amount of time to be presented to the bank as a paper check, usually within one to two business days.
How will this appear on my statement?
The ECA transaction appears on your bank statement in the same area as ATM transactions and direct deposit payroll checks. The transaction will reflect the date the check cleared your account, the check number, the amount and the place where the check was presented.
Why are businesses using the TeleCheck ECA service?
TeleCheck provides the TeleCheck Electronic Check Acceptance service so that businesses have the opportunity for increased efficiency, reduced risk and higher productivity, all of which eventually benefit you—the consumer.
Is this process regulated by any government agency?
This electronic process is governed under Regulation E, which governs all electronic processing, such as ATM and credit card transactions. In case of an error or dispute, check writers have 60 days from the posting date to notify the bank, the same time frame they have today with paper checks.