Know your Standard Entry Class (SEC) Codes — the 3 character code identifying the payment type and formatting requirements regulated by NACHA.

Why is it important to use the correct SEC Code?

Using the correct SEC Code ensures that your company complies with the ACH rules established by NACHA, the electronic payments association. You can also limit your exposure for unauthorized returns by using the proper SEC Code.

When should I use PPD vs. CCD vs. CTX?

PPD – 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.

CCD – Use 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 – Use 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.

What are the unauthorized return time limits?

PPD transactions have a longer window for unauthorized returns than CCD and CTX transactions.

  • CCD and CTX transactions have an unauthorized return time frame of 24 hours (2 banking days). There is one exception; the Receiver may receive permission from the Originator to return an unauthorized transaction.
  • PPD transactions have an extended unauthorized return time frame of 60 calendar days.

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.

Consumer Transactions Commercial Transactions


PPD: Prearranged Payment and Deposit


CCD: Corporate Credit or Debit
CTX: Corporate Trade Exchange

Unauthorized Returns Window

60 calendar days

View PPD  Details

Unauthorized Returns Window

24 hours (2 banking days)

View CCD and CTX  Details

For any questions regarding ACH, please contact Business Solutions Support at 844.238.3838.