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Question: What SEC Code is used when debiting a commercial account? Follow-up question, what SEC Code is used when debiting a consumer account?

 

Answer: The answer is dependent upon channel and method of authorization.

 

If the Originator is debiting a Business / Commercial account (B2B) the SEC Code is CCD regardless of the channel or method of authorization.

 

If the Originator is debiting a Consumer account (P2B or P2P), the methodof authorization determines which SEC Code to use.

 

With a written authorization, the SEC Code is PPD Debit Single Entry.

 

With online/mobile app authorization, the SEC Code is PPD Debit Single Entry.

 

With oral telephonic authorization, the SEC Code is PPD Debit Single Entry.

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This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in the rendering of legal, accounting or other professional advice - from a Declaration of Principles adopted by the American Bar Association and a Committee of Publishers and Associations.
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