25 Banks Enrol In Pilot Scheme To Test Consumer Payments By Telephone

In the pilot program launched by NACHA, a participating financial institution signs up corporate customers, permitting them to offer this authorization method for debit payments. For example, a participating utility company could accept a telephone-authorized debit for an overdue bill rather than requiring a consumer to pay in person to prevent a cutoff in service. The debit is made using the Automated Clearing House (ACH) Network. Operating rules for the ACH Network currently require debit authorizations to be in writing and signed or similarly authenticated. While useful for recurring bill payments for mortgages, insurance premiums, utilities and other recurring payments, a written authorization can be cumbersome for one-time, non-recurring payments. Some of the financial institutions that enrolled in the pilot are Bank of America, Bank One, Chase Manhattan Bank, Citibank, and Wells Fargo/Norwest.


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