What defines a payment option that requires oral authorization prior to processing?

What defines a payment option that requires oral authorization prior to processing?

• A. Written Initiated Entry
• B. Oral Consent Transaction
• C. Telephone Initiated Entry
• D. Verbal Debit Agreement

Answer: (C)

The correct choice defines the method of obtaining an authorization for processing a payment via a voice interaction, typically conducted over the phone. In this context, a Telephone Initiated Entry reflects the specific process where a consumer provides consent verbally, which is then used to initiate an Automated Clearing House (ACH) transaction. Telephone Initiated Entries are unique as they allow for the authorization of payments in real-time and are often used in scenarios where immediate action is required. This method provides an opportunity for businesses to interact directly with consumers, ensuring that both parties understand the nature of the transaction being authorized. While the other options may suggest forms of authorization or entry methods, none convey the specific requirement for oral authorization prior to processing as clearly as Telephone Initiated Entry does. For example, Written Initiated Entry refers to written authorization, while Verbal Debit Agreement implies a more formalized agreement rather than a straightforward phone-based consent process.

The correct choice defines the method of obtaining an authorization for processing a payment via a voice interaction, typically conducted over the phone. In this context, a Telephone Initiated Entry reflects the specific process where a consumer provides consent verbally, which is then used to initiate an Automated Clearing House (ACH) transaction.

Telephone Initiated Entries are unique as they allow for the authorization of payments in real-time and are often used in scenarios where immediate action is required. This method provides an opportunity for businesses to interact directly with consumers, ensuring that both parties understand the nature of the transaction being authorized.

While the other options may suggest forms of authorization or entry methods, none convey the specific requirement for oral authorization prior to processing as clearly as Telephone Initiated Entry does. For example, Written Initiated Entry refers to written authorization, while Verbal Debit Agreement implies a more formalized agreement rather than a straightforward phone-based consent process.