Before initiating a TEL Entry, what must there be between the Originator and the consumer?

For a TEL Entry to be processed, it is essential that there is an existing relationship between the Originator and the consumer. In the context of ACH transactions, 'existing relationship' implies that the Originator must have previously engaged with the consumer in a manner that establishes trust and legitimacy, which can include prior business transactions or an established pattern of communication. This requirement helps ensure that the consumer is aware of and consents to the recurring charges, thus promoting consumer protection and trust in the transactions.

While options such as a formal agreement, legal disclaimer, or written consent may have some relevance in other contexts, they do not specifically represent the foundational requirement for TEL transactions. The emphasis on an existing relationship is rooted in the desire to protect consumers from unauthorized or unexpected withdrawals from their accounts, thus fostering a more secure payment environment.