Business Solutions Support
844.238.3838
Monday – Friday 8 a.m. — 5 p.m.
From direct deposit to sending or receiving payments, Cash Management helps take your business to the next level.
Holiday Closing
Bank Midwest offices, drive-up locations and video tellers will be closed Monday, October 14, to observe Columbus Day, a Federal holiday. We'll resume regular hours on Tuesday, October 15. View all holiday closings.
Business Solutions Support
844.238.3838
Monday – Friday 8 a.m. — 5 p.m.
From direct deposit to sending or receiving payments, Cash Management helps take your business to the next level.
Use the correct SEC Code to ensure that your company complies with ACH rules established by NACHA, the electronic payments association and limit your exposure to unauthorized returns.
Consumer Transactions |
Commercial Transactions |
PPD: Prearranged Payment & DepositUse PPD for deposits and/or withdrawals to or from consumer accounts such as direct deposit of payroll, pension, dividends, or payment of utility bills, mortgages, rent, membership dues, loans and other recurring payments. |
CCD: Corporate Credit or DebitUse this code for deposits and withdrawals to corporate accounts such as consolidating and sweeping funds between your business accounts, or to make or collect payments to or from other corporate entities. CTX: Corporate Trade ExchangeUse this code to make or collect payments to or from other corporate entities when you want to include more than one Addenda Record. An Addenda Record is used to supply payment-related information to the receiving company; i.e. invoice information.
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Unauthorized Returns Window 60 calendar days |
Unauthorized Returns Window 24 hours (2 banking days) |
Use PPD for deposits and/or withdrawals to or from consumer accounts such as direct deposit of payroll, pension, dividends, or payment of utility bills, mortgages, rent, membership dues, loans and other recurring payments.
PPD | Prearranged Payment and Deposit Entry |
Definition | An entry initiated by an Organization to a Consumer Account of a Receiver based on a standing or Single Entry authorization from a Receiver |
Type of Entry | Single OR Recurring EntryCredit OR Debit Entry |
Authorization Requirements | Authorizations must be readily identifiable as an authorization and:
Credit entries to Consumer accounts:
Debit entries to Consumer accounts:
Similarly authenticated:
Electronic authorizations:
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Special Rules | Notice of change in dollar amount:
Notice of change in scheduled debiting date:
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Addenda Records | Addenda Records are OPTIONAL for PPD entries:
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Retention |
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Exception Return Reason Codes |
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CCD CTX |
Corporate Credit or Debit Corporate Trade Exchange |
Definition | CCD: An entry initiated by an Organization to or from the account of that Organization or another Organization
CTX: An entry originated by an Organization to ro from the account of that Organization or another Organization and accompanied by one or more Addenda Records |
Type of Entry | Single OR Recurring EntryCredit OR Debit Entry
May be non-monetary |
Agreements |
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Special Rules |
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Addenda Records | Addenda Records are OPTIONAL for CCD entries:
Addenda Records are OPTIONAL for CTX entries:
Addenda Records for both CCD and CTX:
Upon request of the Receiver, an RDFI MUST provide to its Receiver all Payment Related Information contained within the Addenda record(s). Payment-related information MUST be provided within 2 banking days. |
Specific Return Reason Codes |
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Exception Return Reason Codes |
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Abbreviations:
RDFI: Receiving Depository Financial Institution
ODFI: Originating Depository Financial Institution
PPD transactions have a longer window for unauthorized returns than CCD and CTX transactions.
As the Originator, if you are debiting a corporate customer’s account to collect payments, use the CCD or CTX SEC Code to limit your exposure to unauthorized returns.
If you use the wrong SEC Code (i.e. PPD), you expose your company to a longer unauthorized return window. Even though you are debiting a corporate account, the return time frames are based on the SEC Code used. So, the corporate customer would have 60 days to return an unauthorized transaction versus the 24-hour time limit for CCD or CTX transactions.
Once an entry or file of entries has been transmitted in the ACH Network, it cannot be recalled; however, an erroneous or duplicate file can be reversed. A reversal file should only reverse those batches that were duplicate or contained errors.
It’s the responsibility of the company who originated a duplicate or erroneous file to reverse the file.
Once you find an error or duplicate, transmit the file to Bank Midwest within 24 hours.
You only have 5 banking days after the Settlement Date to initiate a reversing file.
If a duplicate or error is discovered past the 5 day post-settlement date, please contact Business Support, 844.238.3838, for assistance.
You must enter the word, REVERSAL, in the field called “Batch Name.” If a reversal file is intended to reverse an erroneous file, initiate a corrected file as well. If the file is reversing a duplicate, no additional step is needed.
You, as an Originator, must make a reasonable attempt to notify the Receiver of, and the reason for, the reversing entry no later than the Settlement Date of the reversing entry. How you reach out to the receiver is up to you — phone, email, etc. Use your best judgment.
Businesses that accept payments via a web portal and process the transactions via ACH will be required to implement account validation as part of a commercially reasonable fraudulent transaction detection system.
The new rule requires businesses to verify that the routing numbers and account numbers submitted for an ACH transaction are valid.
The ACH rules do not define ‘validate’ but NACHA has provided clarification of the meaning of ‘validate’:
At a minimum, the Originator must use a commercially reasonable means to determine that the account number to be used for the WEB debit is for a valid account – that is, that the account to be used is a legitimate, open account to which ACH entries may be posted at the [consumer’s bank].
This rule is intended to help reduce fraud and reduce the number of returns for invalid account numbers entered by the customer.
What does this mean for your business? If you accept ACH payments on your website and the customer manually enters their account and routing number you will need to have a method for verifying the account information before processing a payment. If you rely on a software provider or shopping cart solution, the provider of that service must implement a solution to comply with the account validation rule.
What are your options for validating an account?
Having the flexibility to move funds faster is nice to have in your back pocket — just in case you need it. Access Same Day ACH through Cash Management with no additional fees. There are any number of reasons why you may need to move money faster including:
There are two processing windows for Same Day ACH transactions:
The limit for Same Day ACH transactions is $1,000,000 per transaction (this limit will not exceed or override your organization’s daily limit).
Learn more about ACH payments at NACHA’s site: nacha.org
Access to the ACH Rule Book is online and free access is available to all Cash Management customers. Contact the Business Solutions Support team to request your credentials to log in for access to the most current ACH guidance and regulations.