Appendix

ACH SEC Codes

ACH SEC Codes

The Standard Entry Class (SEC) code is a three letter code that identifies the nature of the ACH entry. Here are some common SEC codes:

Code Description
ARCAccounts Receivable Entries-A check received by a merchant through mail or drop box and
presented as an ACH entry. Business Checking account, Personal Savings and Personal
Checking accounts are only allowed
BOCBack Office Conversion-A check that is converted from paper to an electronic debit at a
centralized location and presented as an ACH entry. Business Checking account, Personal
Savings and Personal Checking accounts are only allowed
CCDCorporate Cash Disbursement-Primarily used for business to business transactions. Business
Checking account is only allowed. Credits can only be processed using CCD for Business Accounts
PPDPrearranged Payment and Deposits-Used to credit or debit a consumer account. Popularly used for
payroll direct deposits and preauthorized bill payments. Personal Savings and Personal Checking
accounts are only allowed. Credits can only be processed using PPD for Personal Accounts.
TELTelephone Initiated-Entry-Verbal authorization by telephone to issue an ACH entry such as
checks by phone. (TEL code allowed for inbound telephone orders only. NACHA disallows the
use of this code for outbound telephone solicitations calls). Personal Savings and Personal
Checking accounts are only allowed
WEBWeb Initiated-Entry-Electronic authorization through the Internet to create an ACH entry. Bank
Account Holder First and Last Name are required. Personal Savings and Personal Checking
accounts are only allowed