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Setting a Default SEC Code for ACH Payments in the Virtual Terminal

Updated

Overview

If you accept ACH (Automated Clearing House) payments using the Virtual Terminal, you can set a default SEC (Standard Entry Class) code to streamline your transaction process. This ensures that the correct entry method is automatically selected when processing eChecks, saving you time and reducing the chance of error.

What Is an SEC Code?

An SEC (Standard Entry Class) Code is a three-letter code required for every ACH transaction. It tells the banking network how the customer gave you permission to debit or credit their bank account.

Each SEC code corresponds to a specific type of authorization. For example:

  • PPD is used for consumer transactions authorized in writing or online.
  • CCD is for business-to-business transactions.
  • WEB is used when the customer authorizes a payment online via a website or mobile app.

Providing the correct SEC code ensures your transactions comply with NACHA (National Automated Clearing House Association) rules.

Why Set a Default SEC Code?

Setting a default SEC code helps:

  • Save time by auto-selecting your most commonly used code.
  • Reduce manual errors during payment entry.
  • Maintain consistency for recurring or high-volume ACH payments.

Example: If most of your customers authorize payments online through your website or mobile app, setting your default to WEB will auto-fill that option during every new transaction.

Prerequisites

To access the SEC Code Configuration:

  • Your merchant account must have Electronic Check Processing enabled.
  • Your user account must have Access Administrative Options permission.
    • Primary users have this by default.

If you don’t see the SEC Code Configuration option, check with your Merchant Service Provider to confirm these are enabled.

How to Set Your Default SEC Code

  1. Log in to your Merchant Portal.
  2. On the left-side panel, click Options.
  3. Select Settings.
  4. Under Transaction Options, click SEC Code Configuration.
  5. From the Default SEC Code dropdown, select the code you want to use.
  6. Click Save.

Once saved, this default SEC code will automatically appear in the Entry Method (SEC Code) field when you go to the Check Sale page in the Virtual Terminal.

Choosing the Right SEC Code

You are still responsible for selecting the appropriate SEC code based on how the customer gave authorization. Even with a default set, you can manually choose a different SEC code per transaction in the Virtual Terminal.

Important: Your default options may vary depending on your check processor. For instance:

  • If you're approved for PPD and CCD, only those will appear in your dropdown list. This only applies if you are using our in-house ACH processor.
  • Contact your Merchant Service Provider if you're unsure which codes you can use.

Common Questions

What happens if I choose the wrong SEC code?
Using an incorrect SEC code can lead to rejected transactions or non-compliance with NACHA rules. Always choose the code that matches how the customer gave authorization.

Can I change my default SEC code later?
Yes, you can return to the SEC Code Configuration page at any time to update your default setting.

What if I don’t see the SEC Code Configuration option?
This usually means your account isn’t set up for ACH processing or your user permissions need to be updated. Contact your Merchant Service Provider for assistance.

Need Help?

If you have questions about which SEC code to use or need help enabling this setting, please contact your Merchant Service Provider.

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