Skip to content
BOL Conferences
Thread Options
#1676159 - 03/12/12 02:36 PM Written Notification of ACH TEL Initiated Debits
52OPS Offline
100 Club
Joined: Apr 2008
Posts: 199
Is it aceptable for an Originator of a TEL ACH transactions to use e-mail as its communication method to deliver a written notice to the consumer? I thought I read somewhere that e-mail was not an acceptable delivery method. Can anyone shed some light on this?

Return to Top
Deposits and Payments
#1709146 - 06/11/12 11:43 PM Re: Written Notification of ACH TEL Initiated Debits 52OPS
river girl Offline
Diamond Poster
Joined: Nov 2004
Posts: 1,005
I have the same question.
I appreciate the assistance.

Return to Top
#1709203 - 06/12/12 12:59 PM Re: Written Notification of ACH TEL Initiated Debits 52OPS
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
Pages OR20-21 (subsection 2.5.15.2) of the 2012 NACHA rules says that a single entry TEL only requires written notification (received before the settlement date) or the oral authorization to be recorded. It doesn't address the method of communication if the originator opts to provide notice in writing.

For recurring TEL entries, it says "the originator must comply with the requirements of Regulation E for the authorization of preauthorized transfers, including the requirement to send a copy of the authorization to the Receiver." Reg E can be found at http://www.fdic.gov/regulations/laws/rules/6500-3100.html

Return to Top
#1827150 - 06/25/13 04:10 PM Re: Written Notification of ACH TEL Initiated Debits 52OPS
Jade'sFire Offline
Gold Star
Jade'sFire
Joined: Apr 2012
Posts: 369
Yaven IV
So, would we be able to email this written notification for a one time TEL? I am reading this section and am not sure if we would have to fully comply with e-sign or simply get consent from the customer to deliver by email.
From 2013 operating guidelines:
Any written notice or disclosure by the NACHA Operating rules, including those for TEL entries, may be provided in electronic form (e.g., email and SMS text message to a Smartphone or mobile device). However, state and federal laws may require receiver consent before using electronic notices/disclosures.

Customer call in to set up payment, they give us their email and consent to receiving their confirmation by email. …Would this be sufficient? Or do we have to go through all the e-sign hoops and verify their ability to receive and retain this?

Thanks for any guidance,
_________________________
"It's time for the Jedi to end."
Luke Skywalker

Return to Top
#1827248 - 06/25/13 05:52 PM Re: Written Notification of ACH TEL Initiated Debits 52OPS
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Regulation E requires that the consumer be provided a copy of his/her authorization for any preauthorized electronic fund transfer (PEFT). [1005.10(b)]

Comments 10(b)-4 and 5 require that the authorization itself be in writing and discuss how E-SIGN applies.

One-off TEL entries can be done by telephone. Recurring TELs require paper or E-SIGN approved electronic records.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  John Burnett