ACH / Check Processing

Critical Distinction: ACH transactions have a longer settlement time (typically 2-4 business days) and higher reject/NSF risk compared to credit cards.

Processing Steps:

1. Click on the Check tab at the top of the Process Transaction page
2. For New Customers:
   • Enter customer’s name
   • Enter name on the check/account
   • Enter check details:
     • Routing Number (9 digits)
     • Account Number
     • Check Number (optional but recommended for tracking)
3. For Existing Customers:
   • Start typing the customer’s name or customer number
   • System will provide matches automatically
4. Enter the transaction amount
5. Click Process Transaction (bottom right corner)

SEC Codes (Standard Entry Class Codes):

You must select the correct SEC code to remain compliant with NACHA regulations. The wrong code can result in fines or processor violations:

• PPD (Prearranged Payment and Deposit):
  • Use for consumer (personal) checking or savings accounts
  • Customer must provide written authorization
  • Most common for consumer transactions
• CCD (Corporate Credit or Debit):
  • Use for corporate (business) checking accounts
  • Business-to-business transactions
  • No consumer protections apply
• TEL (Telephone-Initiated Entry):
  • Use when transaction is authorized over the phone
  • Specific verbal authorization requirements
  • One-time transactions only (not recurring)
• WEB (Internet-Initiated/Mobile Entry):
  • Use when transaction is authorized online
  • Customer must provide online agreement
  • Used for e-commerce and online payments

Critical Agent Warning: Using the wrong SEC code can void the merchant’s fraud protection and result in NACHA violations. Always verify how the payment was authorized before selecting the SEC code.