Christmas panic can lead to bounced checks, TeleCheck executive says.

HOUSTON--(BUSINESS WIRE)--Nov. 30, 1994--``On the 12th day of Christmas, my true love left for me ... 4 bounced checks, 3 angry retailers, 2 overdue notices -- and a pile of debt under the tree.''

While economists predict a green Christmas for the nation's retailers, millions of Americans may find red in their checkbooks. According to TeleCheck Services, the likelihood that a check will bounce triples between Dec. 1 and Dec. 24.

And the Clearing House Association of the Southwest says that trend begins in November, with a 16 percent increase in the number of checks bouncing in November and December over the previous ten months.

``Some of these bad checks, of course, are a result of fraud. But the spirit of giving can put incredible pressures on spending. People want to have a good Christmas and be able to provide gifts for family and friends. However, shopper's panic may set in the closer it gets to Christmas, or spouses with joint-checking accounts aren't aware of what the other person is spending.

``As a result, they may end up either overspending their budget or overestimating the amount of money available,'' said John D. Chaney, president and chief executive officer of TeleCheck Services Inc., the world's largest check-acceptance company. ``Unfortunately, that often results in bounced checks and the outlay of significant fees to the retailer and the financial institution.''

The TeleCheck executive said good planning, monitoring checking account balances and sticking to a budget can help prevent the bounced-check blues. His suggestions for ``balanced'' holiday spending are:

1. Plan a list of those on your gift-giving list. 2. Prepare a total budget for spending and determine a maximum to

spend for each person on the list. Then stick to it. 3. Keep good records of spending by recording and balancing check

book entries, cash withdrawals, ATM transactions and automatic

deductions, as well as keeping track of credit-card charges. 4. Don't put off shopping until the last week. Over the past few

years, many shoppers became used to deep discounts that retailers

offered the last week to spur slow sales. Last year saw fewer

of these deep price cuts, in part because of better inventory

management. As a result, those who delayed purchases hoping for

a better price may have found that the stores were sold out of

popular items or that selections were limited. 5. Last minute shopping also can lead to impulse buying, either

because stores were out of an item or because shopper's panic has

set in. 6. Plan into the budget one or two additional all-purpose gifts.

Inevitably, someone will have been overlooked. Having a spare

gift on hand will keep you from going over your budget at the

last minute. 7. Pay by cash or check. If you charge, be sure to calculate the

interest you'll pay out into your total gift-giving budget. 8. Be careful not to overbuy through no-payments-until-February

options. If you use this as an option, be sure to calculate the

payments and any interest you'll pay into your budget. 9. Evaluate incentives offered by your credit-card companies. If

the value of the incentive is less than what you'll pay in interest

charges, it's no bargain. 10. Look for alternatives to buying every gift. Look for ways to

combine a homemade item with a purchased item, such as buying an

attractive container and filling it with homemade cookies or

candies. Or splurge on a nice card and give a service that you

know will be appreciated, such as taking an older relative to the

store once a month or providing two free evenings of baby-sitting.

TeleCheck offers consumers a free brochure on budgeting and check-fraud-prevention tips, which is available by calling 800/TeleCheck (800/835-3243).

CONTACT: Marjorie Fowler, 713/267-7303