Text messaging is a great way to engage with customers — it’s cost-effective, convenient and has an average open rate of 98%.
For these reasons, businesses are increasingly making SMS a part of their communications strategies, from sending alerts and account notifications to customer engagement and support. And with intelligent SMS APIs, it’s easier than ever to build high-quality messaging into applications.
But there are strict regulations when it comes to interacting with end users via text, and there are significant penalties if you get it wrong. It’s important to understand what the rules are and how to comply with them.
Who makes the rules?
SMS rules and regulations have been laid out by the Cellular Telecommunications Industry Association (CTIA) and the Federal Communications Commission’s Telephone Consumer Protection Act (TCPA).
These regulations are meant to protect end users from receiving unsolicited or unwanted messages via SMS. The penalties for getting it wrong can include an immediate shutdown of service or fines ranging from $500 to $1,500 per message.
The first step to compliance is to familiarize yourself with the regulations set out by the CTIA and in the TCPA.
Which type of number should I choose?
When it comes to business messaging, you have several number types to choose from, each with its own set of rules. It’s important to be aware of the restrictions to choose the number type that’s right for your use case.
The first option is long codes, 10-digit phone numbers designated by mobile operators for P2P communication. These numbers are for non-marketing use only, so appropriate use cases include chat applications and customer service.
Short codes are 5- or 6-digit phone numbers that customers can lease from the Common Short Code Administration. Users must opt-in to receive this type of message. Short codes are most commonly used for password resets and alerts.
Toll-Free SMS is used to send text messages from toll-free numbers (e.g., 800, 888, 877, etc.). Unlike short codes, toll-free numbers can support both phone calls and SMS, so customers can respond to SMS alerts by texting or calling the same number. Example use cases include appointment reminders, account notifications and emergency alerts.
Messaging best practices
Here are some factors to consider that impact both compliance and customer experience:
- Opt-in and opt-out requirements — Make sure you follow the regulatory requirements and make processes user-friendly.
- Terms and conditions — Be aware of what users need to know and when so they can easily access the information they need.
- Consider timing — Don’t send messages at inappropriate times.
- Identify yourself — Make it clear who is sending the message.
If you’re using SMS as a tool for your business, it’s your responsibility to read up on the regulations and make sure you’re getting things right. It’s well worth the time investment if you are to fully realize the benefits of this popular and convenient communication channel.
The Telnyx Programmable Voice and SMS APIs enable developers to easily leverage Telnyx services to power the next generation of communication applications.
To learn more about text messaging and building on the Telnyx SMS API, take a look at our Programmable SMS page.
