TEL Entries Clause Samples
The 'TEL Entries' clause defines the rules and requirements for initiating electronic funds transfers using Telephone-Initiated Entries (TEL) under the ACH network. It typically outlines the conditions under which a business can accept payment instructions from consumers over the phone, such as requiring a recorded authorization or a written confirmation. This clause ensures that both parties understand the procedures and safeguards for telephone-based transactions, helping to prevent unauthorized transfers and maintain compliance with payment regulations.
TEL Entries. You can submit ACH Orders for telephone-initiated debit entries (each a “TEL Entry”). You may initiate Single Entries to consumer accounts pursuant to oral authorizations you obtain from Receivers (“Consumers”) by telephone. (For recurring TEL Entries, see also the Subsection below entitled “Additional Terms for Recurring TEL Entries”). You agree to submit TEL entries in accordance with the technical specifications and formatting requirements set forth in the Rules and as directed by us from time to time. An entry based on a consumer’s oral authorization must utilize the TEL Standard Entry Class Code.
TEL Entries. If Company has been approved by Bank to initiate TEL Entries, the following additional provisions apply. TEL Entries are debit Entries transmitted to a Consumer Receiver’s account that are initiated by telephone and use the TEL Entry Standard Entry Class (SEC) Codes. Company may not utilize TEL Entries to transmit credit Entries to the Consumer Receiver’s account, unless those Entries are credits to reverse erroneous debits. TEL Entries may be both recurring and non-recurring. TEL Entries may be initiated by Company based on an Authorization that is orally communicated by telephone by Company. In addition to the obligations of Company set forth in this Subpart, as a condition to transmitting TEL Entries, the Rules require that Bank and Company agree to the additional procedures and practices, rights and liabilities, as more fully set forth herein and in the Rules, as well as in the Security Procedures applicable to TEL Entries. Transactions Eligible for TEL Entries. A TEL Entry may be transmitted by Company as Originator only where (i) there is an existing relationship between Company and the Receiver, or (ii) there is not an existing relationship between the Receiver and Company, but the Receiver has initiated the telephone call to Company. If there is no existing relationship between Company and the Receiver, and Company has originated the telephone call, Company may not initiate a TEL Entry. A pre-existing relationship between the Receiver and an affiliate of Company does not constitute a pre-existing relationship with Company.
TEL Entries. If you elected to initiate TEL Entries, as documented on your Treasury Service Data Supplement Form, and we authorize you to originate TEL Entries on applicable Accounts, then such TEL Entries are subject to the provisions of this Section. With respect to all TEL Entries, you hereby make each of the representations, warranties and covenants of an Originator of TEL Entries as set forth in the NACHA Rules regarding TEL Entries as of the date of your initial TSRF and each time you initiate a TEL Entry, including, without limitation, all warranties and covenants concerning consumer authorizations and disclosures. You specifically represent and warrant you have used commercially reasonable procedures to verify the identity of the consumer, including the consumer's name, address and telephone number and have used commercially reasonable procedures to verify that routing numbers are valid. We may, at our option and in our sole discretion, establish exposure limits limiting the number and/or dollar amount of TEL Entries which you may have outstanding at any one time. We may terminate your right to originate TEL Entries at any time. W EB Entries. If you elected to initiate WEB Entries, as documented on your Treasury Service Data Supplement Form, and we authorize you to originate WEB Entries on applicable accounts, then such WEB Entries are subject to the provisions of this Section. With respect to all WEB Entries, you hereby make each of the representations, warranties and covenants of an Originator of WEB Entries as set forth in the NACHA Rules regarding WEB Entries as of the date of your initial TSRF and each time you initiate a WEB Entry, including, without limitation, that you have employed a commercially reasonable fraudulent transaction detection system to screen each WEB Entry (which, at a minimum, validates the account to be debited for the first use of such account number and for each subsequent change to such account number), received written authorization from the Receiver, employed commercially reasonable methods of authentication to verify the identity of the Receiver, taken commercially reasonable steps to verify that routing numbers are valid and will conduct an annual audit to ensure that the financial information obtained from Receivers is protected by adequate securities practices in accordance with the NACHA Rules. CCD/CTX Entries. If you elected to initiate CCD or CTX Entries, as documented on your Treasury Service Data Supplement Form, and ...