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SEC Codes

TEL

An SEC code is a three letter code that describes how a payment was authorized by the consumer or business receiving an ACH transaction. SEC stands for 'Standard Entry Class'. SEC codes are defined and maintained by NACHA, the governing body for the ACH network.

SEC Code
TEL
Definition
Telephone- Initiated Entry
Transaction Type
Debit Single Entry or Recurring Entry
Account Type
Consumer
Requirement
Authorization: Orally authorized over telephone

What is Standard Entry Class (SEC) Code TEL?

SEC code TEL stands for Telephone-Initiated Entry. This SEC code is used in the context of Automated Clearing House (ACH) transactions, which are electronic payments or collections made through the ACH network. The transaction type for TEL is a single entry ACH debit or a recurring entry.

TEL is used for ACH debit transactions where a consumer authorizes a payment over the phone. This is often used for bill payments or purchases initiated during a telephone call. The consumer authorizes the transaction by providing their bank account information and verbal consent during the phone call. The business accepting the transaction via telephone must adhere to specific authorization and recording requirements, including:

  • Clear identification of the company and the purpose of the call.
  • Verification of the consumer's identity.
  • Documentation of the transaction details and the consumer's authorization.
  • The recording of the authorization or provision of written confirmation to the consumer.
  • Maintaining records of the authorization for a specified period.
  • Providing the consumer with information about the transaction.

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