What kind of procedures must Originators who initiate TEL Entries use to verify the identity of the Receiver?

Originators who initiate TEL Entries are required to use commercially reasonable procedures to verify the identity of the Receiver. This requirement is in place to safeguard the ACH network from fraud and ensure the integrity of electronic funds transfer transactions. Commercially reasonable procedures are those that are consistent with what is typically accepted and practiced within the industry for similar transactions. These procedures may include measures like confirming the identity through multiple forms of identification or checking references that can confirm the Receiver’s information.

The emphasis on "commercially reasonable" means that the methods must meet a standard that balances security with practicality, reflecting what is achievable in a business context. This is particularly important for TEL Entries, which involve transactions where the originator obtains authorization from the Receiver via a telephone call, making identity verification critical to mitigate risks associated with unauthorized transactions.

The other options suggest varying standards or levels of flexibility that do not meet the stringent requirements established for verifying identities in TEL transactions, thus making them less appropriate for this context.