TeleCheck was founded in 1964 by John Chaney & Robert Bayer. The company originally began as a check verification service, providing businesses with assurances that a clients personal check, even out of state checks, had sufficient funds.
Today, TeleCheck operates as an electronic funds transfer service. Customers who do not have or do not wish to use, their credit or debit card have their personal checks entered into a TeleCheck device, which electronically transfers the funds immediately from the clients checking account to the business.
TeleCheck also keeps records of persons who write bad checks. Historical data check verification services that use a national network with a negative check database can be difficult for consumers and businesses to remove themselves from once they get on, even in the case of errors.
In 2014, the company paid $3.5 million in fines to the FTC for violating the Fair Credit Reporting Act and for failure to promptly correct errors on consumer accounts.
TeleCheck was acquired by First Data in 1992. The company has acquired several other check verification services since the 1990s, including ClearCheck Services in 2006.
TeleCheck operates as a subsidiary of First Data, which has headquarters in Atlanta, Georgia.