Does Walmart Use Telecheck and Certegy for Check Verification in 2024?

ByCharles Scott Last Update on

As one of the largest retailers in the United States, Walmart processes millions of payments each day across its 4,700+ stores nationwide. Many customers still prefer paying by check, so Walmart utilizes check verification services Telecheck and Certegy to manage risk. Here‘s an in-depth look at how these services work and their role in Walmart stores today.

Overview of Telecheck and Certegy

Founded in the 1960s and 1970s respectively, Telecheck and Certegy are leading check verification companies serving retailers, banks and credit unions. They build robust databases of consumer check writing history and use analytics algorithms to provide risk assessments on check payments.

  • Telecheck processes around 2.7 billion checks per year, working with over 350,000 merchants.

  • Certegy verifies approximately 2 billion transactions annually across 160,000 business clients.

By identifying potentially high-risk checks before acceptance, these services aim to help retailers minimize losses from fraudulent or bad checks. Many major chains rely on them, including Walmart, Kroger, Target and more.

Walmart‘s Use of Check Verification Services

Walmart has used check authorization services across most of its stores for over two decades. In the early 2000s, Walmart switched from in-house check verification to contracting with Telecheck and Certegy for this purpose.

Today, approximately 95% of Walmart stores use Telecheck, while 5% utilize Certegy. Walmart finds it valuable to leverage their extensive transaction databases and predictive analytics capabilities.

Step-by-Step: How Telecheck and Certegy Work at Walmart

When a customer presents a check as payment at Walmart, here is the typical verification process:

  • The cashier scans the check and collects identification such as a driver‘s license.

  • These details are transmitted securely to Telecheck or Certegy for analysis.

  • Within seconds, their predictive algorithms compare the customer‘s ID, check amount, frequency of checks and other data against billions of transactions.

  • They provide a recommendation to Walmart to accept or decline the check based on associated risks.

  • If approved, the customer receives their check back with a receipt to sign. For declines, the receipt explains reasons and next steps.

Key Factors Assessed by Verification Services

To determine the risk profile of a check, Telecheck and Certegy leverage both data-driven algorithms and human expertise. Some key factors evaluated include:

  • Customer purchase history and patterns

  • Frequency and amounts of recently written checks

  • Consistency of check use at that particular store location

  • Verified customer identity

  • Suspicious activity like typos or check stock irregularities

  • Statistical models predicting odds of the check bouncing

In 2021, the overall decline rate for checks at Walmart was around 1.5%, quite low compared to other major retailers.

Tips for Customers to Avoid Check Declines

To prevent verification issues when paying by check at Walmart, it‘s advisable to:

  • Use the same store location each time, as familiarity reduces risk

  • Notify Telecheck/Certegy promptly if you change addresses

  • Start with smaller check amounts to establish a history

  • Ensure check information is accurate during processing

  • Ask about reasons if declined and then resolve identified problems

The Future of Check Usage at Retailers

While check use has decreased in recent years with the rise of debit cards, e-payments and mobile wallets, paper checks are likely to persist for the foreseeable future, especially for certain demographics.

However, verifications services will need to continue enhancing fraud detection capabilities as criminals become more sophisticated. Though checks remain convenient for many customers, their usage at major chains like Walmart is destined to decline over the longer term.

The Bottom Line

Yes, Walmart does employ industry leaders Telecheck and Certegy to authorize checks before acceptance as a key risk prevention measure. By leveraging billions of payment data points, these services provide vital insights that allow Walmart to balance customer convenience and security.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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