An originator wants to offer a service that would allow a consumer to make manual telephone IVR payments that would initiate an ACH debit from the consumer's account. Rather than obtaining "written authorization", the originator would like to obtain an oral authorization for this service.

For one time oral ACH entries, I understand the originator must either: 1) record the oral telephone ACH authorization made with CSR or 2) send written notice that states the date of debit, the amount, the customer's name, a telephone number for inquiries, the date of authorization and a statement that the authorization allows a debit to the account.

Is the originator required to obtain "written authorization" for this service? If they don't obtain written authorization, do they have to send notice each time the consumer manually initiates an telephone ACH payment?

Any help from the Reg E and NACHA experts would be greatly appreciated.

When you say "manually initiates a telephone ACH payment", do you mean the transaction is conducted entirely using the keypad? If the customer is not audibily agreeing to the transaction, an oral authorization is not being provided and a written statement would be required for each authorization. 2003 Operating Guidelines, Section IV, Chapter XV, D, 2 states:

"An originator using a voice reponse unit (VRU) to capture a consumer's authorization for a TEL entry must understand that key-entry responses by the consumer to input data and to respond to questions does not qualify as an oral authorization. A VRU may be used by the consumer to key enter data and to respond to questions, provided that the actual authorizaiton by the consumer is provided orally."

I hope this helps.

The originator would obtain the customer's oral authorization to set up the service for manual telephone payments.

If the originator provided a written confirmation letter stating the customer has signed up for the telephone pay service and they can start making payments anytime - would that suffice under Section IV, Chapter XV,D-2? Or would the originator need to send written notice for each telephone payment request?

The TEL entry class code can only be used for one-time payments and refunding payments received from earlier TEL transactions. If your service is to have a one-time authorization to initiate payments by telephone, perhaps the PPD entry class code would be the better option.

From Section IV.XV.C:
A TEL entry should not be initiated in situtations where the consumer has provided the originator with a standing authorization for the transmission of multiple but non-recurring ACH debit entries to his account.