ACH Credit Transactions

ACH credit transactions are used everyday for any number of reasons. Whether its dividend payments from your broker or your monthly social security check ACH credit transactions are an important part of the ACH network.

ACH Credits Usage
ACH eCheck transactions happen when the Originator (usually a company) starts a transfer to move funds to a Receiver's (consumer) account. There are a number of reasons to perform an ACH Credit transaction.

• dividend payments
• b2b payments
• interest payments
• annuities disbursements
• telephone bill initiated payments
• pension
• tax payments
• refunds
• Social Security payments
• payroll
• government vendor payments

Here is an example. You have a brokerage account at Bank of America and you own 1000 shares of Microsoft. As of this writing Microsoft pays a dividend. If your set up to be payed the dividend, you the Receiver would receive the dividend as an ACH credit to your account from Bank of America, the Originator.

ACH eCheck Payment Applications

The ACH Network supports a variety of payment applications from different vendors. An Originator initiating entries into the system will code the entries in a manner to indicate the type of payment, such as a debit or credit, and whether an entry is a corporate or consumer. The ACH application is recognized by a three digit code or an Standard Entry Class Code (SEC) code. This SEC code appears on the record format. It identifies the specific record format that will be used to carry the payment and the related payment information. Here is a list of entry class codes.

ARC - Accounts Receivable Entry
CIE - Customer Initiated Entry
MTE - Machine Transfer Entry
PBR - Consumer Cross-Border
POP - Point of Purchase
PPD - Prearranged Payment and Deposit
POS - Point of Sale
RCK - Represented Check
TEL - Telephone Initiated Entry
WEB - Internet Initiated Entry
CBR - Corporate Cross Border Payment
CCD - Cash Concentration or Disbursement
CTX - Corporate Trade Exchange
ACK - Acknowledgement Entries
ADV - Automated Accounting Advice
COR - Automated Notification of Change
DNE - Death Notification of Change
ENR - Automated Enrollment Entry
TRC - Truncated Entries
XCK - Destroyed Check Entry