Tel ~ Telephone-Initiated Entry

This SEC Code is used for the origination of a Single Entry debit transaction to a consumer's account pursuant to an oral authorization obtained from the consumer via the telephone. This type of transaction may only be originated when there is either (1) an existing relationship between the Originator and the Receiver, or (2) no existing relationship between the Originator and the Receiver, but the Receiver has initiated the telephone call. This SEC Code facilitates access to the ACH Network by providing an alternative authorization method, oral authorization via the telephone, for certain types of consumer debit entries.

In the case of TEL entries, the Receiver has orally authorized the Originator to initiate a debit entry to a Consumer Account of the Receiver. The authorization must be readily identifiable as an authorization and must clearly state its terms. The following minimum information must be included as part of the authorization:

• the date on or after which the ACH debit to the Receiver's account will occur;
• the amount of the transaction;
• the Receiver's name;
• a telephone number for Receiver inquiries that is answered during normal business hours;
• the date of the Receiver's oral authorization; and
• a statement by the Originator that the authorization obtained from the Receiver is for a Single-Entry ACH debit.