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Are Some Merchants Rejecting Your Personal Checks?
 Have you ever had a personal check rejected at a place of business where you were trying to purchase something?
More members have been reporting this issue because more merchants are using third-party check authorization services to determine if a check should be accepted.
Because of increased check fraud, identity theft, and nonsufficient fund checks, merchants are simply trying to protect their businesses from potential losses.
-- The check authorization services they use gather consumer spending data from many different consumer databases.
-- Using the information, the check authorization services create consumer spending models which are used to provide merchants with an automated decision to accept or decline a check.
When a member has had a check declined, the merchant will give them the phone number to contact the check verification service. It is up to the consumer to see if they can have their record changed by the authorization service. However, many times members will turn to the credit union for help.
Here is some additional information to help explain what is happening:
 | We do not share any of your personal or account information with anyone, nor are we affiliated with any check authorization services. | | Merchants do not have access to your credit union account information; nor do they have your balances.
However, if you have ever written a check that was returned for nonsufficient funds, be aware that merchants report this to their check authorization service. This information is then made available to other participating merchants, and they may reject a check based on the experiences of other merchants. | | Your physical checks printed by the credit union are just fine.
 The issue lies with the check authorization service used by the merchant, and with all the information that service has collected about you. The merchant uses that service to decide whether you fall within a particular pattern of check usage they believe could be fraudulent. The check authorization services state that they change their models frequently, so checks may get rejected one month, but not the next. | | There is nothing the credit union can do to correct this. We recommend that you contact the check authorization service yourself and find out why they are rejecting your checks.
Try to determine if it is based on specific information about you, or whether it is just based on how/where you've been writing out checks? Remember, this is an automated system, computer-operated. The software looks for check usage patterns that appear to be different from what you normally do. | | Some check authorization companies will offer to send you a "gold" application in order to remedy the situation.
Essentially, they are trying to collect more information about you. If it's positive information, they may accept your checks more readily.
The credit union does not recommend completing the application because it requires you to divulge your personal information. |
| The best solution is to use your St. Cloud Federal Credit Union Debit Card when making purchases. It's free and completely safe, and you have zero liability if it's lost or stolen.
Our members find that our Debit Card is easy and fast to use, and best of all, it's hassle-free!
If this sounds like a long advertisement for the Debit Card, the fact is that it's simply the best solution to the problem explained on this page. Your Debit Card also doubles as an ATM cash card. |
For more details about how check authorization services operate, visit this web site.
To order your fee Debit Card today, contact Member Services.
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