Check declined?!??!

Joined: 28 Nov 2007 Posts: 21

So I have had customers in the past who have had their checks declined by "Certegy check clearing" or whatever. I always just assumed there was a reason for it, such as insufficient funds, or a history of writing bad checks.

Anyways, so tonight I was at Sears, buying some x-mas presents for my parents, since I get that "wonderful" 10% associate discount. I didn't have my check card on me, so I was forced to write a check, when lo and behold, my check was declined! We called Certegy up, and all they could say was something about a code 2. I did some searching on Google, and apparently a lot of people have been having that problem.

What is the problem you ask? Get this..... OK, are you sitting down yet? OK, just making sure. Here is the reason they declined my check.... They feel that I have not established a regular check writing pattern, and so therefore, they would not be willing to accept my check for $150.00. I was like "WTF is going on here"

Keep in mind, they did not decline it because I didn't have enough money (which I do) or that I have a history of writing bad checks (which I don't).... They simply declined it because they can't identify a regular check writing pattern from my account. Now I can see why some customers get so mad when their checks are declined, and that is because there is absolutely no reason for them to decline the check.

I just can't believe that they can decline a perfectly good check just because I hardly ever write checks. They should realize this is the 21st century, and people use something called a CHECK CARD to pay for things these days.

Joined: 26 Jan 2007 Posts: 483

I sold like a humongous TV with a humongous PA and got a code 2 on the check the other day. Thank god it worked out....otherwise i'd have been out of a 200+ dollar sale. I mean, it's established people, they don't want a credit card, they have more than enough money in the bank, yet you won't take a 4k check from them? It was number 4XXX, and their account was like 10-15 years old. If they bounce the f'n thing it'd be a felony. How do they expect honest people who don't want credit to pay for things?

Joined: 15 Dec 2006 Posts: 73

This has been Certegy policy since they became Certegy. There are four codes altogether, but generally the only two you'll ever hear are code 1 (bad check information on file), or code 2 (inadequate positive information on file). Generally you'll see code 2s on high-dollar checks with low check numbers, though there are other exceptions (as noted above).

The worst part is that the exact point at which a check goes from acceptable to code 2 is well within SHC's control. Note that when Certegy approves a check, they pay Sears (or whatever retailer) immediately, and assume all responsibility if a check is bad. Obviously they'd like to avoid this as much as possible. Each company they deal with has a negotiated dollar amount below which code 2 is simply not possible. I'd assume this factors in to the fees the retailer is charged for Certegy's service. Other retailers I've worked with set this at $250, and one even had a POS method to accept a code 2 unless it was a very new account (check number below 200 and/or account open less than six months).

I can't believe SHC has them code 2'ing at $150. Customers are always furious when this happens, and I can't really blame them.

Joined: 19 Oct 2003 Posts: 2801

Whats wrong with you people? You are to put it on a S-Hole credit card...Just open one and FORCE them to take it!,,,,Remember....YOU are to decide what the customer wants and needs! Rolling Eyes

Joined: 04 Sep 2004 Posts: 73

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