Ach credit vs ach debit payments3/10/2024 International ACH must meet three requirements. Bill-pay services often use a CIE entry on behalf of a consumer after a successful PPD/WEB debit. CIEĪ Customer-Initiated entry is a credit made on behalf of a consumer to a biller. BOCĪ Back Office Conversion entry is like ARC, but the check must be presented in person either at a point of sale or to a manned bill payment location. Large corporate accounts receivable departments are the primary source of entries with this code. The check number appears in the entry description. The signed check acts as the authorization for the debit. These five SEC codes make up the majority of payment-related entries we see at Modern Treasury. There are some lesser-used codes that are worth mentioning because of their unique usage constraints: Payment Code Glossary ARCĪccounts Receivable entries happen when debiting the account of someone who has mailed a check to the originator. These debits can either be single-use or recurring, like PPD entries. Internet-initiated/Mobile entries happen when debiting a consumer bank account using authorization given over the internet or a "wireless" network. the consumer) must have been the one to make the phone call. Operating guidelines state that the originator and receiver must have a pre-existing relationship, or if none exists the receiver of the debit (i.e. Telephone-initiated entries happen when debiting a consumer bank account using authorization given over the phone. In most B2C contexts, PPD is by far the most commonly used SEC code. The payment can be either single-use or recurring. PPDĪ Prearranged Payment and Deposit entry is a credit or debit to a consumer's bank account. This extra information shows that the entry is for the payment of a single or many invoices and must be encoded in a specific ASC X12 or UN EDIFACT format. CTXĪ Corporate Trade Exchange entry is like a CCD entry but requires the originator to include extra remittance data in the form of addenda records. Top 5 Payment Codes CCDĪ Corporate Credit or Debit entry facilitates B2B payments between two separate companies or a single company consolidating the cash it holds at various financial institutions. This list is not exhaustive, but we have included descriptions for SEC codes companies are likely to receive or start themselves. The SEC code dictates which rules and regulations apply to a given payment, who can start them, and under which specific scenarios they can occur. These categories appear as a unique 3-character Standard Entry Class (SEC) code with every entry. The ACH network supports dozens of payment scenarios.
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