Accredited ACH Professional (AAP) Practice Exam

Which debit entry is initiated based on oral authorization for telephone purchases?

1. Point-of-sale (POS)

2. Telephone-Initiated (TEL)

3. Recurring Payment (RP)

4. Internet Initiated (WEB)

The correct answer is: Telephone-Initiated (TEL)

The correct answer is indeed the category of transactions known as Telephone-Initiated (TEL) entries. This type of entry is specifically designed for situations where the consumer gives their authorization for a debit transaction over the phone. When a customer agrees to a purchase or a payment arrangement during a telephone conversation, this oral authorization qualifies the transaction as a TEL entry. It is distinct from other types of ACH transactions, which have their own specific authorization requirements. For instance, Point-of-sale (POS) transactions involve physical card interactions, Recurring Payment (RP) mandates written authorization for ongoing payments, and Internet Initiated (WEB) transactions primarily occur online where consumer consent is typically evidenced through electronic means rather than via telephone. Hence, the TEL option is uniquely suited to transactions where consumers provide consent to initiate a debit entry over the phone, aligning perfectly with the question's context regarding telephone purchases.