What is a TEL Entry?

A TEL Entry (Telephone Initiated Entry) is debit entry originated based on an oral authorization provided to the licensee by a customer via the telephone.  The authorization for a Single Entry TEL Entry must include the date on or after which the ACH debit to the customer’s account will occur, the amount of the transaction, the customer’s name or identity, the account being debited, the telephone number for customer inquiries, the date of the customer’s authorization, and a statement by the licensee that the authorization obtained is for a single entry ACH debit, a one-time electronic funds transfer, or similar reference.

The licensee must either make an audio recording of the oral authorization or provide a written notice confirming the oral authorization prior to the settlement date.  The written notice or audio recording must be maintained for at least two years from the date of the authorization.

Refer to NACHA Operating Rules Article 2, Subsection 2.5.15 for more information about TEL Entries.