ARC

Accounts Receivable Entry. This Standard Entry Class code enables originators to convert to a Single Entry ACH debit a consumer check received via the U.S. mail or at a dropbox location for the payment of goods or services. The check is used to collect the consumer’s routing number, account number, check serial number, and dollar amount for the transaction.

BOC

Bank Office Conversion. BOC is the SEC code that will enable businesses to accept eligible paper checks at the point of purchase or at a manned bill payment location and then convert those checks into ACH debits. A merchant (originator) notifies its customers at the point of purchase or manned bill payment location that their check payments may be processed using check conversion. The notification allows that, by presenting a check payment, the consumer has authorized the conversion from paper to electronic. The consumer may opt out of check conversion, at which time the merchant may choose to offer an alternative payment option.

CCD

Cash Concentration or Disbursement. This can be either a credit or debit transaction where funds are either distributed or consolidated between corporate entities. This transaction can serve as a stand-alone funds transfer, or it can support a limited amount of payment-related data with the funds transfer.

Note that any time you debit/credit a business bank account, a signed authorization must be obtained either on a separate document or as part of your contractual agreement with the business customer before the transaction occurs.

CIE

Customer Initiated Entry. Customer Initiated Entries are limited to credit applications where the consumer initiates the transfer of funds to a company for payment of funds owed to that company, typically through some type of home banking product or bill payment service provider.

CTX

Corporate Trade Exchange. The Corporate Trade Exchange application supports the transfer of funds (debit or credit) within a trading partner relationship in which a full ANSI ASC X12 message or payment-related UN/EDIFACT information is sent with the funds transfer. The ANSI ASC X12 message or payment-related UN/EDIFACT information is placed in multiple addenda records.

IAT

International ACH Transaction. International ACH Transaction (IAT) is a new Standard Entry Class code (SEC) that replaces the CBR and PBR SEC codes that are currently in use today. NACHA rules will require the IAT code and format of all ACH payments entering or exiting the U.S. For more information concerning IATs, see the International ACH Transaction (IAT) Report (FPSDR217) on DocsOnWeb.

If this code is used, the Reason field will be automatically updated to "International ACH Transaction."

MTE

Machine Transfer Entry. The ACH Network supports the clearing of transactions from automated teller machines, i.e., Machine Transfer Entries (MTE).

POP

Point of Purchase Entry. This ACH debit application is used by originators as a method of payment for the in-person purchase of goods or services by consumers. These single-entry debit entries are initiated by the originator based on a written authorization and account information drawn from the source document (a check) obtained from the consumer at the point of purchase. The source document, which is voided by the merchant and returned to the consumer at the point of purchase, is used to collect the consumer’s routing number, account number, and check serial number that will be used to generate the debit entry to the consumer’s account.

POS

Point of Sale Entry. This is a point-of-sale debit application in a non-shared (POS) environment. These transactions are most often initiated by the consumer via a plastic access card (see also SHR).

PPD

Prearranged Payment & Deposit Entry

•Direct Deposit (credit) - Direct deposit is a credit application that transfers funds into a consumer’s account at the Receiving Depository Financial Institution. The funds being deposited can represent a variety of products, such as payroll, interest, pension, dividends, etc.

•Preauthorized Bill Payment (debit) - Preauthorized payment is a debit application. Companies with billing operations may participate in the ACH through the electronic transfer (direct debit) of bill payment entries. Through standing authorizations, the consumer grants the company authority to initiate periodic charges to his or her account as bills become due. This concept has met with appreciable success in situations where the recurring bills are regular and do not vary in amount—insurance premiums, mortgage payments, and installment loan payments being the most prominent examples. Standing authorizations have also been successful for bills where the amount does vary, such as utility payments.

RCK

Re-presented Check Entry. A Re-presented Check Entry is a single entry ACH debit application used by originators to re-present a check that has been processed through the check collection system and returned because of insufficient or uncollected funds. This method of collection via ACH, compared to the check collection process, provides originators with the potential for improvements to processing efficiency (such as control over timing of the initiation of the debit entry) and decreased costs.

SHR

Shared Network Transaction. This is a point-of-sale debit application in a shared (SHR) environment. These transactions are most often initiated by the consumer via a plastic access card.

TEL

Telephone-Initiated Entry. This Standard Entry Class Code is used for the origination of a single-entry debit transaction to a consumer’s account pursuant to an oral authorization obtained from the consumer via the telephone. This type of transaction may only be originated when there is either (1) an existing relationship between the originator and the receiver, or (2) no existing relationship between the originator and the receiver, but the receiver has initiated the telephone call. This SEC Code facilitates access to the ACH Network by providing an alternative authorization method, oral authorization via the telephone, for certain types of consumer debit entries.

WEB

Internet-Initiated Entry. This Standard Entry Class Code is used for the origination of debit entries (either single or recurring entry) to a consumer’s account pursuant to an authorization that is obtained from the receiver via the Internet. This SEC Code helps to address unique risk issues inherent to the Internet payment environment through requirements for added security procedures and obligations.

XCK

Destroyed Check Entry. This application can be utilized by a collecting institution for the collection of certain checks when those checks have been destroyed.