Recurring TEL Transaction Authorizations

Typical Uses: Recurring TEL transactions are payment schedules set up over the phone. For example:

Payments for the same amount on a regular schedule, such as weekly or monthly service fees (cleaning, day-care, etc.).
Payments for a different amount on a regular schedule, such as utility bills and country club greens and other usage fees.
Payment plans for discharging a large debt, such as home remodeling or roof replacement

How to Authorize: There are two ways to authorize a recurring TEL transaction, which may be used together or separately.

Voice Recording

Notify the caller that the call is being recorded.
Clearly state the particulars of the schedule which must include the following:
--The Recurring Transaction Amount (or how the variable amount will be calculated)
--The Date the Recurring Schedule was authorized
--The schedule on which payments will be generated, including the start date and end date, if any.
--Your Company Name
--The Customer’s Bank Account that will be debited (At least bank name and last 4 digits of acct #)
--A telephone number where your company may be contacted during regular business hours

-- Use the following as a template:

I want to confirm that today {insert current date} you {insert the customer’s full name} are authorizing {insert your company name} to initiate a recurring ACH debit from your {insert bank name} bank account ending in {insert last 4 digits of bank account #} for {amount, or how amount is to be calculated; i.e. for your monthly greens fees, not to exceed $500} on {schedule frequency, i.e. the 15th of each month} starting on {insert start date} and ending on {insert end date, or “when you notify us to terminate the schedule.”} If you have any questions about this schedule, or if you would like to cancel or change the schedule, you can reach us at {insert your business phone number}. Please say “I agree” to authorize this schedule.
Make certain that you hear the customer say “I Agree.” Silence does not constitute authorization.
Send an email receipt as described below.
Save the tape of the authorization for 2 years after the last payment on the schedule is processed.

Email, Mail, or Fax Confirmation (You must prove the confirmation was sent, you're not required to prove it was received.)
NOTE: Even if you are not recording the conversation, you should use the sample call script above to ensure that you are providing all required information to the customer when they authorize an ACH schedule over the phone.

Send an email, fax, or mailed confirmation BEFORE the first scheduled transaction is submitted to the bank.
NOTE: Automated email receipts and schedule confirmations from ReceivablesPro ALWAYS get sent before the transaction is submitted to the bank.
The notification must include the following:
--The Recurring Transaction Amount (or how the variable amount will be calculated)
--The Date the Recurring Schedule was authorized
--The schedule on which payments will be generated, including the start date and end date, if any.
--Your Company Name
--The Customer’s Bank Account that will be debited (At least bank name and last 4 digits of acct #)
--A telephone number where your company may be contacted during regular business hours
--An email address that is monitored during regular business hours
--A Mailing Address to which the customer can send schedule changes/cancellations.

NOTE: The default TEL recurring payment schedule receipts in ReceivablesPro contain all of the required elements. If you edit these templates, make sure you do not remove any required information.
Keep a copy of the receipt on file (for emails, CC to your email address) for 2 years after the last payment on the schedule is processed.

You are also required to send an email confirmation for any change to a recurring ACH schedule if the authorized payment amount, payment account, frequency, start date or end date changes.

This confirmation must be sent PRIOR to the changed payment amount being processed-- even if the amount is lower than the originally authorized amount.

What ReceivablesPro Does For You:
When you check the “Send a receipt to the customer” checkbox in the TRANSACTION RECEIPTS and in the Do you want to send emails for new and updated recurring payment schedules? portion of the RECURRING PAYMENT REMINDERS sections of the Settings--> Configuration--> Email Preferences and Templates screen, the system will automatically send all required emails to your customers for all ReceivablesPro schedules. When you also check the “Send a receipt to my company at” checkbox and enter your email address in the fields in those configuration sections, ReceivablesPro automatically sends a CC of the emails to the email address you entered.

Additional Recommendation:
Send a pre-notification email to your customer prior to the date the scheduled payment is processed. The default setting for pre-notification emails is “on” with the pre-notification sent 1 day prior to the payment date. You can change this on a global basis in the RECURRING PAYMENT REMINDERS section of the Settings--> Configuration--> Email Preferences and Templates screen. Select the “No” radio button for pre-notifications if you don’t want to send them. Or, change the number of days prior (choose from 1 to 10 days) that the pre-notification email is sent. You can also make this change on a case-by-case basis for each individual recurring payment schedule when you create it.

Next >