ACH Entry Code Glossary

A major part of understanding electronic business check processing is understanding ACH entry codes. The Standard Entry Class code, typically referred to as the SEC code, is a three-letter code that reveals the type of the ACH entry. The most common SEC codes are listed below.

ARC

Accounts Receivable Entries - check received by a business through the mail or a drop box and presented as an ACH entry.

BOX

Back Office Conversion - a paper check that is converted to an electronic debit at a central location and then processed as an ACH entry.

CCD

Corporate Cash Disbursement - used mostly for B2B (business-to-business) payment. This is especially relevant for business check processing endeavors.

DNE

Death Notification Entry - can only be issued by federal government.

POP

Point of Purchase - a consumer presents a check to a merchant in-person for a purchase, and the merchant submits it as an ACH entry in place of a paper check.

PPD

Prearranged Payments & Deposits - type used to debit or credit consumer accounts. Most often used for direct payroll deposits and preauthorized recurring bill payments. The direct deposit of employees’ checks qualifies as a PPD, which is a major component of the business check processing business.

RCK

Represented Check Entries - paper check that was submitted by a consumer but returned due to insufficient funds, and the check is then presented as an ACH entry.

TEL

Telephone-Initiated Entry - a verbal authorization given via telephone to issue an ACH entry, for instance, checks by telephone. Merchants can only use the TEL code for incoming phone orders only. The regulations that govern ACH and business check processing prohibit businesses from using the code for outgoing phone solicitations.

WEB

Web-Initiated Entry - an electronic authorization submitted over the Internet to generate an ACH entry.

XCK

Destroyed Check Entry - when a physical check is ruined due by a disaster, it can be submitted as an ACH entry.

Have more questions about the ACH process? Check out our frequently asked questions page for further information.