SEC CODE

SEC CODE DESCRIPTION

APPLICATION USE

ARC

Accounts Receivable Entry

The Accounts Receivable (ARC) Entry provides billers the opportunity to initiate single-entry ACH debits to customer accounts by converting checks at the point of receipt through the U.S. mail, ata drop box location or in-person for payment of a bill at a manned location. The biller is required to provide the customer with notice prior to the acceptance of the check that states the receipt of the customer’s check will be deemed as the authorization for an ARC debit entry to the customer’s account. The provision of the notice and the receipt of the check together constitute authorization for the ARC entry. The customer’s check will solely be used as a source document to obtain the routing number, account number and check serial number.

BOC

Back Office Conversion

Back Office Conversion (BOC) allows retailers/billers, and ODFIs acting as Originators, to electronically convert checks received at the point-of-purchase as well as at a manned bill payment location into a single-entry ACH debit. The authorization to convert the check will be obtained through a notice at the checkout or manned bill payment location (e.g., loan payment at financial institution’s teller window) and the receipt of the Receiver’s check. The decision to process the check item as an ACH debit will be made in the “back office” instead of at the point-of-purchase. The customer’s check will solely be used as a source document to obtain the routing number, account number and check serial number.

CCD

Corporate Credit or Debit

The Corporate Credit or Debit (CCD) application provides a way for companies to receive cash rapidly, manage funds and control cash disbursements. Companies that operate several branches or sales outlets may consolidate funds quickly and eliminate the difficulties associated with transferring funds to a central corporate account. This application enhances the ability to predict funds availability and improve a company’s total cash management capability. The CCD application can also be used to transfer funds among corporate entities in payment of goods or services, and can support a limited amount of payment-related data (e.g., invoice number, discounts taken, purchase order number, etc.) with the funds transfer.

CIE

Customer-Initiated Entry

A credit entry initiated by consumers through a bill payment service provider to pay bills, including bill payment services submitted through a telephone, ATM or online.

CTX

Corporate Trade Exchange

The Corporate Trade Exchange (CTX) application provides the ability to collect and disburse funds and information between companies. Generally it is used by businesses paying one another for goods or services. These payments replace checks with an electronic process of debiting and crediting invoices between the financial institutions of participating companies.

IAT

International ACH Transaction

An IAT entry is a credit or debit ACH entry that is part of a payment transaction involving a financial agency’s office (i.e., depository financial institution or business issuing money orders) that is not located in the territorial jurisdiction of the United States. IAT entries can be made to or from a corporate or consumer account and must be accompanied by seven (7) mandatory addenda records identifying the name and physical address of the Originator, name and physical address of the Receiver, Receiver’s account number, Receiver’s bank identity and reason for the payment.

POP

Point-of-Purchase Entry

The Point-of-Purchase (POP) application provides businesses the opportunity to create a debit entry to a Receiver’s account for a purchase made in-person at the point-of-sale or a manned bill payment location. After providing the proper notice, the Originator (merchant/retailer) accepts a source document, a paper check/share draft, from the Receiver, which is then inserted into a check-reading device to capture the account information (routing number, account number and check serial number) from the MICR line of the check. The dollar amount of the transaction is manually key-entered by the sales clerk. The check/ share draft is then voided and returned to the Receiver along with an authorization form. The Receiver then authorizes the Originator to convert it into a one-time electronic debit to the Receiver’s account.

POS

Point-of-Sale

Point-of-Sale Entries (POS) are ACH debit entries typically initiated by the use of a merchant-issued plastic card to pay an obligation at the point-of-sale. Much like a financial institution issued debit card, the merchant-issued debit card is swiped at the point-of-sale and approved for use; however, the authorization only verifies the card is open, active and within the card’s limits—it does not verify the Receiver’s account balance or debit the account at the time of the purchase. Settlement of the transaction moves from the card network to the ACH Network through the creation of a POS entry by the card issuer to debit the Receiver’s account.

PPD

Prearranged Payment and Deposit

Prearranged Payments and Deposits (PPDs) can be either credit or debit entries and represent either single or recurring payments. PPD transactions are more widely known as Direct Deposit and Direct Payment. The Direct Deposit application provides the ability to disburse funds to consumer accounts. The Direct Payment application provides the ability to collect funds from consumer accounts. PPD can also be used for Return Fee Entries. If a company is allowed by law to collect a fee for a debit entry (ACH or check) that is returned as NSF or UCF, it would use the PPD Standard Entry Class code to do so as long as proper notice is provided.

RCK

Re-presented Check Entry

The Re-presented Check (RCK) Entry provides businesses the ability to collect funds from paper checks that have been processed through the check collection system and returned NSF or UCF. A consumer’s paper check that has been returned insufficient or uncollected funds may be submitted as an ACH debit entry through the ACH Network, as long as the proper notice is provided.

TEL

Telephone-Initiated Entry

The Telephone-Initiated (TEL) Entry provides businesses the opportunity to initiate ACH debits to consumer accounts for the purchase of goods and services pursuant to an oral authorization obtained over the telephone. TEL entries can be either set up for one specific payment (Single-Entry) or to occur at regular intervals (Recurring). A TEL entry may be transmitted only in circumstances in which (1) there is an existing relationship between the Originator and the consumer, or (2) there is not an existing relationship between the Originator and the consumer, but the consumer has initiated the telephone call to the Originator.

WEB

Internet-Initiated/ Mobile Entry

The Internet-Initiated/Mobile (WEB) Entry can be either a debit or credit entry and represents either single or recurring payments. A WEB debit entry provides companies the opportunity to initiate a debit entry to consumer accounts for the purchase of goods or services pursuant to an authorization obtained over the Internet or a Wireless Network. A WEB credit entry is initiated on behalf of a consumer to pay another person or to transfer monies from a consumer’s account at one financial institution to his/her account at another institution. The payment instructions may be communicated via the Internet, Wireless Network or in-person at the financial institution.

SEC CODE

ENTRY TYPE

AUTHORIZATION REQUIREMENT

Accounts Receivable Entry (ARC)(Corporate to Consumer/Corporate to Corporate)

Debits

Notification is required prior to acceptance of the check.

Back Office Conversion (BOC)(Corporate to Consumer/Corporate to Corporate)

Debits

Notification prior to acceptance of the check and written authorization required.

Corporate Credit or Debit (CCD) (Corporate to Corporate)

Debits/ Credits

Agreement required for transfers between companies; written authorization implied.

Customer-Initiated Entry (CIE) (Consumer to Corporate)

Credits

Presumed agreement between consumer and company or paying agent.

Corporate Trade Exchange (CTX) (Corporate to Corporate)

Debits/ Credits

Agreement required for transfers between companies; written authorization implied.

International ACH Transaction (IAT)(Corporate to Corporate/Corporate to Consumer/ Consumer to Consumer)

Debits/ Credits

Agreement required for transfers between companies; credit entries to consumer accounts require authorization be provided orally or by non- written means; debit entries to consumer accounts require a written, signed or Similarly Authenticated* authorization.

Point-of-Purchase Entry (POP)(Corporate to Consumer/Corporate to Corporate)

Debits

Notification prior to acceptance of the check and written or signed or similarly authenticated authorization required.

Prearranged Payment & Deposit (PPD) (Corporate to Consumer)

Credits

Authorization required. Oral or non-written means (i.e., voided check) accepted.

Prearranged Payment & Deposit (PPD) (Corporate to Consumer)

Debits

Authorization required. Written, signed or Similarly Authenticated.* Authorization for Return Fee Entries may be obtained by providing notice to the consumer when the original debit is presented for payment.

Re-presented Check Entry (RCK) (Corporate to Consumer)

Debits

Notification is required prior to acceptance of the check.

Telephone-Initiated Entry (TEL) (Corporate to Consumer)

Debits

For Single Entry, recorded oral authorization or written notice provided to the consumer confirming the oral authorization*. For Recurring, a copy of the authorization must be provided to the consumer.

Internet-Initiated/Mobile Entry (WEB) (Corporate to Consumer)

Debits

Similarly Authenticated authorization required due to the nature of the Internet.*

Internet-Initiated/Mobile Entry (WEB) (Consumer to Consumer)

Credits

No authorization required.

Point-of-Sale (POS)

Debit/ Credit

Written and signed or similarly authenticated