The ACH Rules governing a series of recurring entries (the authorization for more than one payment), telephone initiated payments (TEL) require that certain information is recited to the payer and acquired from the payer. The sample script below includes all the recommended, minimum disclosures and information requirements for a verbally authorized payment over the telephone. It is not necessary that your script is in this exact format. Your script should also disclose additional details about the terms and conditions of the sale, payment, subscription or service to include instructions on how to cancel the service, return the product, terminate the payment authorization or contact you in the event of an inaccuracy, question or concern.
THE RULES REQUIRE THAT YOU RECORD THE AUTHORIZATION PORTION OF THE CALL (OR THE ENTIRE CALL IF PREFERRED) AND THAT YOU SEND AN EMAIL OR WRITTEN NOTIFICATION TO THE PAYER AT THE CONCLUSION OF THE CALL WHICH VERIFIES THE AUTHORIZATION AND SERIES OF PAYMENTS TO THE PAYER AND PROVIDES THE PAYER WITH A PHONE NUMBER THROUGH WHICH THEY CAN CONTACT YOU IN THE EVENT THAT ANY OF THE INFORMATION IS INCORRECT OR IF THEY WISH TO RESCIND THE AUTHORIZATION AND CANCEL THE PAYMENT. WHETHER THE CONFIRMATION IS IN THE FORM OF AN EMAIL OR A MAILED LETTER, IT MUST REACH THE PAYER IN ADVANCE OF THE DATE OF FIRST THE WITHDRAWAL.
You must retain the authorization recordings and email or mail notifications for a period of two years from the date of the authorization. Please be advised that it if ACH Processor, a payer, regulatory agency, originating or receiving bank challenges the authenticity of the recurring transactions and you cannot provide evidence of a valid authorization in the form of a voice recording, you could experience regulatory and legal consequences as well as lose ACH payment privileges.
If recording the verbal authorization, the Payer must give permission for that portion of the conversation to be recorded unless permission or notification that call is subject to recording is provided at the onset.
Authorization is for a series of recurring payments:
When initiating a voice recording and permission to record the call has not been previously provided:
“I am now going to take your payment information. For verification and compliance purposes I will be recording this portion of our call, do I have your permission to record your payment authorization?”
Can you repeat your name as it appears on the bank account from which we will be debiting your payment?
May I have the name of your bank?
May I have the bank routing number?
May I have the bank account number?
May I have your email address?
The amount of the (Monthly, Weekly, Quarterly) payment you are authorizing today (recite today’s date) is $_______________.
You are authorizing (number) of payments in this amount and you are authorizing us to withdraw this payment from your account on the dates specified during the term of your agreement or while your service / subscription in effect and until you cancel or your agreement terminates as scheduled.
The first payment will be withdrawn from your bank on and have an effective date of (Month / Day). Then, (Number) subsequent payments on the (Day of each (Month or other specified cycle) for the duration of this authorization and term of your (Agreement, subscription, service plan, payment plan, etc).
To confirm, you are authorizing me to initiate these withdrawals from the bank account provided and that you are an owner of this account.
Do I have your permission to initiate these payments? If so, please say “yes”.
If you wish to cancel and terminate this payment authorization, if you have any questions or concerns or if the amount of the payment is different from what you have authorized, please call us at ________________________. Our customer service hours are _______________.
Please watch your inbox as we will be sending you an email confirming this verbal authorization for these recurring payments.
Verification email / letter confirmation if authorization is for a series of recurring payments:
The name of the Company or Entity should be at the header of the email or if mailed, presented on a Company Letterhead.
The verification email or letter should summarize the basic terms of the transaction to include the amount and date the payment was authorized and effective date of the payment, the purpose of the payment, a means for canceling the payment and any other important terms and conditions in which good business practices would dictate disclosure.
Payer’s Name
Today’s Date.
Thank you for your business.
Please accept this email/letter as confirmation of the electronic debit payments which you have authorized us to withdraw from the (Bank Name) bank account provided to us in the name of (Account Holder Name) ending in (last four digits of the bank account number) as payment for (Description of Product / Service or the purpose of the payment).
The date you provided this authorization is: (Date the verbal authorization was received)
The effective date of your first payment is (Date) followed by (Number of Payments) or (until your service / subscription / membership is cancelled). These payments will be withdrawn from your bank account (description of the frequency and timing of the payment and/or the actual day of the month on which the payment will occur) until you notify us of your intent to cancel and/or rescind this authorization.
If you have received this notification in error, the information provided herein is incorrect or you wish to cancel and rescind this authorization or receive a refund, please call us at (Customer Service Number) or email us at (Customer Service Email).
(Any additional, appropriate information or disclosures)
NOTE: Never send the complete bank account number in a non-encrypted email. It is recommended that, for clarity sake, you should recite only the last four digits of the account and omit the bank routing number)
Proof of Authorization:
A digital recording of the verbal authorization and a copy of the original email or confirmation letter
If an email copy, the email should be date and time-stamped and show the full email address of the Payer. If a letter is provided, it should show the mailing address of the Payer.
