All ACH accounts can be used to accept telephone transactions. Telephone ACH payments are direct debit transactions which are initiated by a buyer over the phone. The transactions require an authorization which is usually obtained by a voice recording. The transaction will occur on the buyer’s bank statement as an ACH transaction.

Telephone ACH transactions are used only for single-entry debits to a consumer’s account. A separate authorization is required from the buyer for each transaction. The direct debit transaction can only be accepted if the buyer initiates the call or if there is an existing relationship between buyer and seller whereby the buyer has purchased from the merchant within the past 2 years.

Authorization of transactions must clearly state the terms of the authorization. . The authorization must include the buyer name, contact and billing information, the amount of the transactions, the effective date of the transaction and the consumer’s recorded agreement for a single-entry ACH debit. No outbound telemarketing is allowed.

Telephone transactions are a fast and convenient way for consumers to purchase goods and services. Telephone sales are another effective means by which merchants can accept payments and increase revenues.