PPD Code Details


This standard entry class code applies to consumer accounts.


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 Entry
Credit OR Debit Entry
Authorization Requirements Authorizations must be readily identifiable as an authorization and:

  • Have clear and readily understandable terms
  • Provide that the Receiver may revoke the authorization only be notifying the Originator in the time and manner stated in the authorization

Credit entries to Consumer accounts:

  • Authorization is not required to be in writing

Debit entries to Consumer accounts:

  • Authorization must be in writing and signed or similarly authenticated

Similarly authenticated:

  • The standard permits signed, written authorizations to be provided electronically
  • To satisfy requirements of Reg E and NACHA Operating Rules, the authentication process must evidence both the consumer’s identity and the assent to the authorization

Electronic authorizations:

  • Must be visually displayed in a manner than enables consumer to read the communication
  • Writing and signature requirements are satisfied by compliance with the E-sign Act
  • Electronic signatures include, but are not limited to digital signatures and security codes
Special Rules

Notice of change in dollar amount:

  • If the amount of a debit Entry to a Consumer account differs from the amount of the immediately preceding debit Entry relating to the same authorization, or differs from a preauthorized amount, an Originator must send the Receiver written notification of the amount of the Entry
  • The Originator must send this notice at least 10 calendar days prior to the date on which the entry is scheduled to be initiated

Notice of change in scheduled debiting date:

  • If the Originator changes the scheduled date on or after the entries are scheduled to be initiated to a Receiver’s account, the Originator must send the Receiver written notification of the new date.
  • If the Originator must send this notice at least 7 calendar days before the first entry is scheduled to be debited to the Receiver’s account
Addenda Records

Addenda Records are OPTIONAL for PPD entries:

  • Maximum number of Addenda records is one
  • Used by Originator to supply additional information about the entry detail record
  • Must contain payment-related information only — any other use is prohibited
  • ANSI ASC X12 data segments or NACHA endorsed banking conventions (i.e. tax payment/child support)
  • Originator must retain the original or a copy of each authorization (signed, written or similarly authenticated) of a Receiver for 2 years from the termination or revocation of the authorization
  • Upon receipt of an RDFI’s written request — ODFI must provide a copy at no charge within 10 banking days
Exception Return Reason Codes
  • R07 Authorization RevokedĀ 
    60 calendar days
    Need Written Statement of Unauthorized Debit
  • R08 Payment Stopped
    24 hours
  • R10 Customer Advises Not Authorized
    60 calendar days
    Need Written Statement of Unauthorized Debit



RDFI: Receiving Depository Financial Institution

ODFI: Originating Depository Financial Institution