ACH SEC codes overview

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ACH SEC codes (Standard Entry Class codes) are three-letter codes defined and maintained by Nacha (the governing body of the ACH Network in the U.S.). They classify the type of ACH transaction, specifying:

• The purpose and nature of the entry (e.g., consumer vs. corporate account).
• Whether it's a debit (pull funds) or credit (push funds).
• If it's single-entry or recurring (though some are inherently one-time).
• Authorization requirements (e.g., written, oral, electronic).
• Record format details (including addenda for remittance info).

The SEC code is placed in positions 51-53 of the ACH batch header record and must match the entry details for compliance. Using the wrong code can lead to returns, compliance issues, or failed processing.

As of March 2026, the list of active SEC codes remains stable (no major additions/removals in recent rule updates; changes in 2026 focus on fraud monitoring, standardized descriptions like "PAYROLL" for PPD credits, and "PURCHASE" for certain WEB debits starting March 20, 2026, plus future IAT tweaks in 2027). Nacha currently recognizes about 13–15 commonly used codes, with a few more specialized ones.

Commonly Used ACH SEC Codes (2026 Overview)​

Here's a breakdown of the most widely used and relevant codes, grouped by category (based on Nacha’s ACH Guide for Developers, Operating Rules, and processor documentation like Modern Treasury, Stripe, and others):

Consumer-Focused Codes (Primarily for Individual Accounts)​

• PPD — Prearranged Payment and DepositThe most common consumer code.
  • Use: Direct deposits (payroll, benefits, pensions), recurring bill payments, one-time consumer credits/debits.
  • Debit or Credit; Single or Recurring.
  • Authorization: Written/signed or authenticated (electronic).
  • Key 2026 note: For wage/compensation credits, Company Entry Description must include "PAYROLL" (mandatory since March 20, 2026).
  • Example: Employer payroll, auto-debit mortgage.
• WEB — Internet-Initiated/Mobile EntryFor online or app-initiated transactions.
  • Use: E-commerce purchases, online bill pay, mobile authorizations.
  • Debit only; Single or Recurring.
  • Authorization: Electronic (e.g., checkbox, agreement on website/app).
  • Key 2026 note: E-commerce purchases typically require WEB; Company Entry Description often "PURCHASE" for fraud tracking.
• TEL — Telephone-Initiated EntryPhone-based authorization.
  • Use: Telemarketing, phone orders, catalog payments.
  • Debit only; Single or Recurring.
  • Authorization: Oral (recorded or verbal); pre-existing relationship often needed for recurring.
• CIE — Customer Initiated EntryConsumer pushes funds (credit).
  • Use: Bill pay services where payer initiates.
  • Credit only; Single entry.

Check Conversion Codes (Paper-to-Electronic)​

• ARC — Accounts Receivable EntryConverting mailed/lockbox/dropbox checks.
  • Debit only; Single.
  • Notification required.
• BOC — Back Office ConversionPoint-of-purchase or manned bill payments converted in back office.
  • Debit only; Single.
• POP — Point-of-Purchase EntryIn-store check conversion at POS.
  • Debit only; Single.
  • Signed/posted notice.
• RCK — Represented Check EntryRe-presenting returned NSF checks as ACH debit.
  • Debit only; Single.

Corporate/Business-Focused Codes​

• CCD — Corporate Credit or Debit (also CCD+)B2B transactions.
  • Use: Vendor payments, cash concentration, tax payments.
  • Debit or Credit; Single or Recurring.
  • Authorization: Agreement between businesses (no consumer protections).
• CTX — Corporate Trade ExchangeLike CCD but with extensive addenda (up to 9,999 records for invoices/remittance).
  • Debit or Credit; Single or Recurring.
  • Use: Complex B2B with detailed data.

International and Special Codes​

• IAT — International ACH TransactionCross-border entries involving foreign financial agencies.
  • Debit or Credit; Single or Recurring.
  • Special fields (e.g., foreign correspondent bank); upcoming 2027 changes for DOB field and definitions.
• XCK — Destroyed Check EntryReplacement for lost/damaged checks.
  • Debit only; Single.

Other / Less Common or Non-Monetary​

• ENR — Automated Enrollment Entry (zero-dollar, for direct deposit setup).
• DNE — Death Notification Entry (non-monetary, from federal agencies).
• POS — Point-of-Sale (card-based merchant conversions, rare now).

Quick Summary Table of Key Codes​

SEC Code	Type	Debit/Credit	Consumer/Corporate	Common Use Case	Single/Recurring
PPD	Prearranged Payment	Both	Consumer	Payroll, bills, subscriptions	Both
WEB	Internet/Mobile	Debit	Consumer	Online purchases, e-bill pay	Both
TEL	Telephone	Debit	Consumer	Phone orders	Both
CCD	Corporate Credit/Debit	Both	Corporate	Vendor payments, B2B	Both
CTX	Corporate Trade Exch.	Both	Corporate	Detailed invoice payments	Both
ARC/BOC/POP	Check Conversion	Debit	Varies	Paper check to ACH	Single
IAT	International	Both	Varies	Cross-border	Both

Important 2026 Notes​

• No new SEC codes added in 2026; focus is on fraud monitoring (phased March/June 2026), mandatory descriptions (e.g., "PAYROLL" for PPD wages), and better tracking for high-risk entries like WEB.
• Processors (e.g., Stripe, Modern Treasury) often default to PPD/WEB for consumers and CCD for businesses.
• Always use the correct code per Nacha rules to avoid returns (e.g., R05 for corporate code on consumer account).

For the complete official list, exact formats, and any niche codes, refer to Nacha’s ACH Guide for Developers (achdevguide.nacha.org) or the 2026 Nacha Operating Rules & Guidelines (subscription required at nacha.org). If you're originating ACH, your ODFI (bank/processor) will specify supported codes. Let me know if you want details on a specific code!