Common use of Types of Entries Clause in Contracts

Types of Entries. Financial Institution will transmit debit and/or credit Entries initiated by Company to the ACH Network as provided in the NACHA Operating Rules & Guidelines (hereafter referred to as the “Rules”) and this Agreement. As used in this Agreement, the following are ACH Standard Entry Class Codes (SEC): • ARC - Accounts Receivable Entry - An ACH debit created from a check received in the U.S. Mail or a drop box location and converted to an ACH debit. (Refer to Rules regarding items eligible for check conversion). • BOC – Back Office Conversion – During back office processing, an ACH debit is created from a check received at the point of check being tendered or received at a “manned” bill payment location for in-person payments. (Refer to Rules regarding items eligible for check conversion). • CCD – Corporate Credit or Debit – Either a credit or debit where funds are either distributed or consolidated between corporate entities. • CTX - Corporate Trade Exchange –The transfer of funds (debit or credit) within a trading partner relationship in which payments related information is placed in multiple addenda records. • IAT – International ACH Transaction – A debit or credit Entry that is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the United States. (Refer to Rules for further definitional details) • POP - Point-Of-Purchase- ACH debit application used by Originators as a method of payment for the in-person purchase of goods or services by receivers (check conversion). (Refer to Rules regarding items eligible for check conversion). • PPD - Prearranged Payment and Deposit o Direct Deposit - The transfer of funds into a consumer's account. Funds being deposited can represent a variety of products, such as payroll, interest, pension, dividends, etc. o Direct Payment - Preauthorized payment is a debit application. This includes recurring bills that do not vary in amount -- insurance premiums, mortgage payments, charitable contributions, and installment loan payments or standing authorizations where the amount does vary, such as utility payments. • RCK - Re-presented Check - An ACH debit application used by originators to re-present a consumer check that has been processed through the check collection system and returned because of insufficient or uncollected funds. (Refer to Rules regarding items eligible for check conversion). • TEL - Telephone-Initiated Entry – This is used for the origination of a single Entry debit transaction to a consumer’s account pursuant to an oral authorization obtained from the consumer via the telephone. • WEB - Internet-Initiated Entry - A debit Entry or enrollment in recurring debit to a consumer account initiated by an Originator pursuant to an authorization that is obtained from the receiver via the Internet. The above SEC Codes are the most commonly-used.