ACH Processing Rules change from time to time. Each originator of ACH transactions is expected to know and follow the rules as determined by the National Automated Clearing House Association (NACHA). This page is a high level summary of the Entry Class Codes used in iCheckGateway.com and is not intended to be all-inclusive of the rules.

PPD
Predetermined Payment & Deposit entries are contractual electronic payments or deposits to a consumer account.

Basic Rules - PPD
• Electronic transactions must be authorized in writing.
• Authorization must contain information about the amount and dates of the transaction(s).
• Authorization must be maintained for two years and be made available to the receiving (check writer’s) bank within 10 banking days upon request.

CCD
Cash Concentration or Disbursement entries are contractual electronic payments or deposits to a corporate account.

Basic Rules - CCD
• Electronic transactions must be authorized in writing.
• Authorization must contain information about the amount and dates of the transaction(s).
• Authorization must be maintained for two years and be made available to the receiving (check writer’s) bank within 10 banking days upon request.

TEL
Telephone Initiated entries are single entry electronic payments or deposits to a consumer account initiated by the consumer via telephone.

Basic Rules – TEL
• These transactions must be authorized verbally and the authorization recorded or confirmation of the authorization may be sent to the customer via e-mail or regular mail. It is strongly encouraged that the merchant record all verbal authorizations in order to prove compliance.
• Authorization must contain information about the amount and dates of the transaction(s).
• Authorization must be maintained for two years and be made available to the receiving (check writer’s) bank within 10 banking days upon request.

Standard Entry Class (SEC) Codes:

ARC
Accounts Receivable Entry. A consumer check converted to a one-time ACH debit. The difference between ARC and POP is that ARC can result from a check mailed in where as POP is in-person.

BOC
Back Office Conversion. A single entry debit initiated at the point of purchase or at a manned bill payment location to transfer funds through conversion to an ACH debit entry during back office processing. Unlike ARC entries, BOC conversions require the customer to be present and a notice that checks may be converted to BOC ACH entries be posted.

CCD
Corporate Credit or Debit. Primarily used for business-to-business transactions.

CTX
Corporate Trade Exchange. Transactions that include ASC X12 or EDIFACT information.

DNE
Death Notification Entry. Issued by the federal government.

IAT
International ACH Transaction. This is a new SEC Code for cross-border payment traffic. The code will replace the PBR and CBR codes. The new code will be implemented September 18, 2009.

POP
Point-of-Purchase. A check presented in-person to a merchant for purchase is presented as an ACH entry instead of a physical check.

POS
Point-of-Sale. A debit at an electronic terminal initiated by use of a plastic card. An exInternational ACH Transaction. An SEC Code made for cross-border payment traffic that replaced the PBR and CBR codes.

RCK
Represented Check Entries. A physical check that was presented but returned because of insufficient funds may be represented as an ACH entry.

TEL
Telephone 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 unless a prior business arrangement with the customer has been established.)

WEB
Web Initiated-Entry. Electronic authorization through the Internet to create an ACH entry.

XCK
Destroyed Check Entry. A physical check that was destroyed because of a disaster can be presented as an ACH entry.



ACH Processing Entry Class Codes
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