What is the NACHA SEC Code?

NACHA stand for North American Clearing House Association.  This association has come up with three letter codes to identify how the checking information was obtained.

Below is an explanation of each term and when to select it from the dropdown menu:


WEB (Web Initiated):

This is used when account and routing numbers are entered through an online form
PPD (Prearranged Payment & Deposit):  This is used when you have prearranged payments and deposits, most often on a recurring basis (payroll, bill payments)
TEL (Telephone Initiated Entry): This is used when account and routing numbers are taken by phone
CCD (Cash Concentration or Disbursement): This is used for Corporate Cash Disbursements (any ACH debit or credit from a business bank account.  It’s used  just like PPD, but for business accounts.  PPD transactions to a business account are not “proper SEC Codes” and may be returned
CTX (Corporate Trade Exchange): Rarely used
POP (Point-of Purchase): This is used when you have a paper check in hand and are “cashing it” through the Easy Pay Direct Gateway.  It is also known as ECC (Electronic Check Conversion)