What must the Originator verify about the Receiver when processing a TEL Entry?

What must the Originator verify about the Receiver when processing a TEL Entry?

• A. Address and phone number
• B. Identity and FI Routing Number
• C. Date of birth and account type
• D. Payment history and credit score

Answer: (B)

When processing a TEL Entry, the Originator must verify the identity of the Receiver along with the Financial Institution (FI) Routing Number. This verification is crucial because TEL Entries involve initiating transactions based on a telephone authorization and require the Originator to ensure that the Receiver has authorized the transaction and indeed has a valid account at a financial institution identified by the routing number. The focus on verifying the Receiver's identity helps prevent fraud by confirming that the person giving authorization for the debit transaction is legitimate and has the authority to initiate the transaction. Additionally, the FI Routing Number ensures that the funds are correctly routed to the appropriate bank, which is essential for the successful execution of the transaction. Other options mentioned do not align with the necessary verifications specified in the ACH operating rules for TEL Entries, such as address and phone number, date of birth and account type, or payment history and credit score, which are not required for this specific type of authorization.

When processing a TEL Entry, the Originator must verify the identity of the Receiver along with the Financial Institution (FI) Routing Number. This verification is crucial because TEL Entries involve initiating transactions based on a telephone authorization and require the Originator to ensure that the Receiver has authorized the transaction and indeed has a valid account at a financial institution identified by the routing number.

The focus on verifying the Receiver's identity helps prevent fraud by confirming that the person giving authorization for the debit transaction is legitimate and has the authority to initiate the transaction. Additionally, the FI Routing Number ensures that the funds are correctly routed to the appropriate bank, which is essential for the successful execution of the transaction.

Other options mentioned do not align with the necessary verifications specified in the ACH operating rules for TEL Entries, such as address and phone number, date of birth and account type, or payment history and credit score, which are not required for this specific type of authorization.