SEC Code

The ACH network supports different payment applications, and each ACH application is identified and recognized by a specific Standard Entry Class (SEC) Code, which appears in the ACH record.

The SEC Code identifies the ACH transaction type relevant to the application; whether it is a consumer or commercial transaction. Each SEC Code has different Rule, Authorization, or disclosure requirements.

Note that:

Proper use of SEC Codes is crucial in ensuring that the merchant and the Originating Depository Financial Institution (ODFI) are in compliance with NACHA Rules.
The Originator (Merchant) must obtain proper Authorization prior to initiating an ACH transaction.
Each ACH Entry must be identified by an SEC code which determines the Rules governing the Entry.
In all cases, the merchant should be prepared to provide a copy of the Authorization obtained.

This table lists the SEC Codes that TSYS processes:

SEC Code	Title	Transaction Type	Transaction Code	When to apply
CCD	Corporate Credit or Debit Entry	Commercial	Both Credits and Debits	Business to Business (B2B) ACH transactions should use this SEC Code, when obtaining Authorization via a signed form (a/k/a Trading Partner Agreement), verbally over the phone, or via the internet
PPD	Prearranged Payment and Deposit Entry	Consumer	Both Credits and Debits	The consumer signs a form authorizing withdrawal from their account
POP	Point of Purchase	Both	Debits Only	Converted check at the point of purchase
TEL	Telephone-Initiated Entry	Consumer	Debits Only	Consumer provides oral Authorization via the telephone
WEB	Internet-Initiated Entry	Consumer	Debits Only	Consumer provides Authorization via the internet or a wireless network

Note: This table only provides general information about each SEC Code, which is subject to change at any time. For complete up-to-date information on SEC Codes, refer to the latest NACHA Operating Rules and Guidelines.