Nacha · Standard Entry Class codes
ACH SEC codes, PPD, CCD, WEB and TEL.
What each Standard Entry Class code means, whether it moves consumer or corporate money, and what authorization it needs.
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The short answer
Every ACH batch carries a three-character Standard Entry Class (SEC) code that names the kind of payment it is. Nacha's developer guide says each ACH application has its own SEC code, and the code generally tells you whether the entry is consumer or corporate, whether it is single or recurring, and which record format carries it. PPD is a prearranged payment or deposit to a consumer account. CCD is a corporate credit or debit. WEB is an internet- or mobile-initiated entry. TEL is a telephone-initiated debit.
| Code | Name | Debit or credit | Parties | Authorization |
|---|---|---|---|---|
| PPD | Prearranged Payment and Deposit | Credit or debit | Corporate to consumer | Direct deposit: oral or non-written. Direct payments: written |
| CCD | Corporate Credit or Debit | Credit, debit or non-monetary | Corporate to corporate | Agreement between companies; written authorization implied |
| WEB | Internet-Initiated or Mobile Entry | Credit or debit | Corporate to consumer | Credit: none by the receiver. Debit: similarly authenticated |
| TEL | Telephone-Initiated Entry | Debit | Corporate to consumer | Single: recorded oral authorization or written notice. Recurring: copy of authorization to the consumer |
Where the SEC code lives in the file
The SEC code is field 6 of the batch header record (record type 5), in positions 51 to 53, three alphanumeric characters. It sits after the company identification and before the company entry description, and the guide notes that some SEC codes require specific values in the entry description. Each ACH file record is 94 characters long. The individual payments are entry detail records (record type 6) with a two-digit transaction code in positions 2 and 3; the SEC code is a different field and is not the transaction code.
Choosing between the four
- Paying or collecting from a person's bank account with a signed form: PPD. It covers both recurring direct deposits such as payroll and direct payments authorized in writing. One addenda record can be attached to each entry.
- Moving money between businesses: CCD. It is commonly used to pay vendors, concentrate cash across accounts and fund payroll or petty-cash accounts, and a CCD entry can carry a single addenda record.
- A consumer authorizes a debit online or on a phone app: WEB. The guide notes the "similarly authenticated" standard lets a signed written authorization be given electronically, if it is displayed on a screen, readily identifiable as an authorization and has clear terms. A credit WEB entry is a person-to-person transfer.
- A consumer authorizes a debit by speaking with you: TEL. A recorded oral authorization, or a written notice confirming the oral authorization, is required for a single entry, and a copy of the authorization must go to the consumer for a recurring one.
Other SEC codes you may see
Nacha's guide also lists these commonly used codes: ARC (accounts receivable entries), BOC (back office conversion), CIE (customer-initiated entries), CTX (corporate trade exchange), IAT (international ACH transaction), POP (point of purchase), POS (point of sale) and RCK (re-presented check entries). Their rules differ, so check the Nacha Operating Rules before using one. TXP is not an official SEC code: it is a convention for tax payment addenda records, defined by each taxing agency.
Limits of this page
- This page summarizes Nacha's public ACH Guide for Developers. The Nacha Operating Rules are the controlling text, and the guide itself says file layouts are more fully defined there.
- It does not list return reason codes, transaction codes or return deadlines; those come from the Operating Rules.
- Your bank or ODFI decides which SEC codes it will originate for you and what its own agreement requires.
FAQ
What is an ACH SEC code?
It is a Standard Entry Class code, a three-character code in the ACH batch header that identifies the type of payment, such as PPD, CCD, WEB or TEL.
What is the difference between PPD and CCD?
PPD is a credit or debit sent by an originator to a consumer account, such as direct deposit. CCD is a credit or debit to a corporate account, commonly used to pay vendors or fund disbursement accounts.
When do I use a WEB entry?
A debit WEB entry is used when the consumer's authorization was obtained over the internet or a wireless network, other than an oral authorization by telephone. A credit WEB entry is a person-to-person transfer.
What does TEL mean in ACH?
TEL is a telephone-initiated entry, an ACH debit created when the consumer authorizes the transfer orally by telephone.
Where does the SEC code go in an ACH file?
It is field 6 of the batch header record, in positions 51 to 53, three characters long.
Is TXP an SEC code?
No. According to Nacha's guide, TXP is not an official SEC code but a convention for the addenda records used for tax payments, and each taxing agency controls its specification.
Where are the full ACH rules?
In the Nacha Operating Rules. Nacha's developer guide notes that file layouts are more fully defined in the Operating Rules, Appendix Three.
Sources
Retrieved 2026-11-02. Each link was opened and checked against the claim next to it.
- Nacha, ACH Guide for Developers: "ACH File Details" (Internet Archive snapshot of November 8, 2025): SEC code table, batch header field layout, PPD and CCD entry layout, TXP note; the live achdevguide.nacha.org blocked automated reading on 2026-11-02, so the archived copy was used (read 2026-11-02)
- Nacha, ACH Guide for Developers: "How ACH Works" (Internet Archive snapshot): background on ODFI, RDFI and ACH participants (read 2026-11-02)
Not legal or compliance advice
This page is general information about ACH, not legal or compliance advice. The Nacha Operating Rules and your bank agreement govern what you may send. Everything runs in your browser; nothing you enter is sent anywhere.