A lot. Really. Standard Entry Class or SEC Codes are a cornerstone to the everyday ACH transaction and work hand in hand with authorization requirements.
Remember in Originators Originate that we talked about how Originators are required to ensure that all information contained in a transaction is accurate? That includes the SEC Code. The SEC Code tells us how the transaction was authorized and what type of account the Receiver has – Consumer or Business.
When it comes to using SEC Codes, I cannot stress the importance of using the proper code – every time.
Here is a brief list of some of the more popular SEC Codes;
PPD
CCD
WEB
TEL
BOC
ARC
RCK
There are a bunch of other SEC Codes, and if you want to see a full list, you can always visit pages OR 103 through OR 106 of the 2009 ACH Operating Rules book or just stay tuned here and we’ll talk about them in upcoming posts.
I figure the easiest thing to do would be to review them one at a time. We’ll talk about what they mean, what the authorization requirements are, how to properly use them and anything else that comes to mind.
I will try to do one a week and we’ll start with PPD.
Ooh, something to look forward to.
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