ACH Payment Types and Applications
Consumer codes
- PPD - prearranged payment or deposit to/from a consumer account (payroll, recurring bills).
- WEB - consumer authorized over the internet; debits require commercially reasonable fraud screening.
- TEL - oral telephone authorization; consumer accounts only, and only with an existing relationship or written notice before the first entry.
- CIE - customer-initiated credit only; a consumer pushes funds to a third party.
Corporate codes
CCD (a single addenda record) and CTX (up to 9,999 addenda records for remittance detail) apply to company accounts. ACK/ATX acknowledge enrollments; ENR and DNE serve federal agencies; COR carries Notifications of Change.
The check conversion family - the classic trap
- ARC: consumer checks received by mail or drop box; check destroyed.
- BOC: consumer checks converted in the back office after being accepted at the point of sale; check destroyed.
- POP: converted at the point of sale in front of the customer; check voided and handed back.
- RCK: re-presentment of a check already returned for insufficient or uncollected funds - consumer checks only, $2,500 or less, no more than twice, never for stop payments or closed accounts.
- XCK: a substitute check that was truncated and destroyed.
IAT carries cross-border payments.
Traps
Choosing RCK after an R08 stop-payment return; using TEL for a corporate account; forgetting CIE is credit-only; picking BOC when the check never leaves the customer's hands.
Rule of thumb: ask who touched the check and when - mailroom is ARC, back office after the sale is BOC, cashier in front of the customer is POP.