AAP SEC Codes and Entry Types

Question 1

Which SEC code is used for prearranged payments and deposits between a company and consumer accounts?

Accepted Answer

PPD (Prearranged Payment and Deposit)

Answer

PPD is the Standard Entry Class code for ACH credits and debits to consumer accounts where a written authorization has been established in advance.

Question 2

The CCD SEC code is used for:

Accepted Answer

Corporate credit or debit transactions between business accounts

Answer

CCD (Corporate Credit or Debit) is used for business-to-business ACH transactions, such as vendor payments or concentration of funds.

Question 3

WEB entries are defined as:

Accepted Answer

ACH debit entries to consumer accounts authorized via the internet

Answer

WEB is the SEC code for one-time or recurring ACH debit entries to consumer accounts where authorization is obtained via the internet.

Question 4

The TEL SEC code applies to:

Accepted Answer

ACH debit entries to consumer accounts authorized via telephone

Answer

TEL is the SEC code for single-entry or recurring ACH debit entries to consumer accounts where authorization is obtained by telephone.

Question 5

Which SEC code is used for point-of-purchase check conversion transactions at a merchant location?

Accepted Answer

POP (Point-of-Purchase)

Answer

POP is used when a consumer's check is converted to an ACH debit entry at the point of purchase with the consumer present.

AAP - Accredited ACH Professional Practice Test