AUTHORIZING ELECTRONIC PAYMENTS BY PHONE – What you should know
Making payments these days can be as easy as picking up the telephone. Many companies are now equipped to take your verbal authorization over the phone to create an electronic withdrawal from your share draft or share account. This is not only convenient, but if a due date is looming and you need to make a payment fast, this can be the difference between making a timely payment and paying a costly late fee. Be sure you understand your rights. This method of payment is not intended for use during ‘cold calls’. For your protection, the authorization for this type of transaction is valid only when:
- there is an existing relationship between a company and you, the consumer, or
- no existing relationship exists, but you have initiated the phone call.
To learn more about electronic payments, click here.
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