Explain ACH entry types

[Papa Carder]

ACH entry types are identified by Standard Entry Class (SEC) codes — three-letter codes defined and maintained by Nacha (the governing body of the ACH Network). Each SEC code specifies:

• The nature of the transaction (e.g., consumer vs. corporate account).
• Whether it's a credit (push funds to receiver) or debit (pull funds from receiver).
• If it's single-entry or recurring.
• The required authorization method.
• The specific record format used in the ACH file (including addenda for remittance info).

SEC codes appear in the ACH batch header and determine compliance rules, return timeframes, and fraud monitoring. As of March 2026, the core list remains consistent with prior years, with recent Nacha updates focusing on fraud monitoring (effective phases in 2026), standardized Company Entry Descriptions (e.g., mandatory "PAYROLL" for PPD credits and "PURCHASE" for certain WEB debits starting March 20, 2026), and enhanced risk processes — but no major additions or removals to the SEC code set itself.

Here are the most commonly used and recognized ACH SEC codes (based on Nacha guidelines and industry references):

Consumer-Focused SEC Codes (Primarily for Individuals)​

• PPD — Prearranged Payment and DepositMost common for consumer transactions.
  • Used for: Direct deposits (payroll, pensions, benefits), recurring bill payments (utilities, loans, subscriptions), or one-time consumer debits/credits.
  • Debit or Credit; Single or Recurring.
  • Authorization: Written/signed or similarly authenticated for debits; oral/written for credits.
  • Example: Employer payroll direct deposit or auto-debit for gym membership.
• WEB — Internet-Initiated/Mobile EntryFor online or mobile-authorized debits.
  • Used for: E-commerce purchases, online bill pay initiated by consumer via website/app.
  • Debit only; Single or Recurring.
  • Authorization: Written/signed or similarly authenticated (e.g., electronic checkbox/agreement).
  • From March 20, 2026: E-commerce purchases often require Company Entry Description "PURCHASE" for better fraud tracking.
• TEL — Telephone-Initiated EntryOral authorization over the phone.
  • Used for: Phone-ordered payments (e.g., catalog/telemarketing).
  • Debit only; Single or Recurring.
  • Authorization: Oral (phone call); pre-existing relationship often required for recurring.
• ARC — Accounts Receivable EntryCheck conversion from mailed/in-person checks.
  • Used for: Converting paper checks (mail, lockbox, dropbox) to ACH debit.
  • Debit only; Single entry.
  • Notification required before processing.
• BOC — Back Office ConversionSimilar to ARC but for point-of-purchase or manned bill payment locations.
  • Used for: Retail checks scanned/converted in back office.
  • Debit only; Single entry.
  • Posted notice required.
• POP — Point-of-Purchase EntryCheck conversion at point-of-sale.
  • Used for: In-store check payments converted to ACH.
  • Debit only; Single entry.
  • Posted notice and signed authorization.
• POS — Point-of-Sale EntryCard-based at merchant location.
  • Used for: Merchant-issued card payments converted to ACH debit.
  • Debit only; Single entry.
  • Signed or authenticated authorization.
• RCK — Represented Check EntryRe-presenting a returned NSF check as ACH debit.
  • Used for: Collecting on previously returned checks.
  • Debit only; Single entry.
  • Posted notice required.

Corporate/Business-Focused SEC Codes​

• CCD — Corporate Credit or DebitBusiness-to-business transfers.
  • Used for: Vendor payments, cash concentration, tax payments.
  • Debit or Credit; Single or Recurring.
  • Authorization: Agreement between parties (no consumer rules apply).
• CTX — Corporate Trade ExchangeSimilar to CCD but includes remittance addenda (up to 9,999 records).
  • Used for: Complex B2B payments with invoice details.
  • Debit or Credit; Single or Recurring.
  • Authorization: Agreement between parties.
• CIE — Customer Initiated EntryCredit pushed by consumer (e.g., via bill pay service).
  • Used for: Person paying a bill/obligation.
  • Credit only; Single entry.

Other / Special SEC Codes​

• IAT — International ACH TransactionFor cross-border payments involving non-U.S. financial agencies.
  • Used for: Inbound/outbound international transfers via ACH.
  • Debit or Credit; Single or Recurring.
  • Special rules: Additional fields (e.g., foreign correspondent bank), optional DOB field (upcoming 2027 changes).
• ENR — Automated Enrollment EntryNon-monetary entry for enrolling in direct deposit (e.g., federal benefits).
  • Credit only (zero dollar); Single entry.
• DNE — Death Notification EntryNon-monetary notice of death from federal agencies.
  • Credit only (zero dollar).
• XCK — Destroyed Check EntryReplacement for lost/damaged/unreadable checks.
  • Debit only; Single entry.

Key Notes for 2026​

• Most common in everyday use: PPD (consumer payroll/bills), CCD (B2B), WEB (online purchases), and IAT (international).
• Authorization differences: Consumer entries (PPD, WEB, etc.) have stricter rules under Regulation E (reversibility for unauthorized debits). Corporate (CCD/CTX) rely on agreements.
• Return windows: Vary by SEC (e.g., 60 days for many consumer debits like WEB/PPD; shorter for some check conversions).
• Fraud monitoring: 2026 Nacha rules expand requirements for originators/processors to monitor for fraud across entry types, especially high-volume or high-risk (WEB, micro-entries, etc.).
• Company Entry Description: A 10-character field describing purpose (e.g., "PAYROLL" mandatory for PPD wage credits from March 20, 2026).

This covers the primary ACH entry types in active use. For the absolute latest/official list or file format specs, refer to Nacha's ACH Guide for Developers or the 2026 Nacha Operating Rules & Guidelines (available via subscription on nacha.org). If you're originating ACH (e.g., via a bank or processor), always confirm supported codes with your ODFI, as not all offer every type.