- What are SEC Codes?
- SEC Code Configuration
- Video Tutorial
If a merchant is processing ACH payments in the Virtual Terminal they may want to change the default SEC Code that's auto-selected. The SEC Code Configuration allows the merchant to set a default SEC code displayed in their Merchant Portal. This setting will only change the default SEC code displayed in the Virtual Terminal.
The merchant account will need an active Electronic Check Processing Platform configured in order to see the SEC Code Configuration option in their Settings page.
The merchant's user will need the 'Access Administrative Options' permission to be able to access SEC Code Configuration. Primary users have this permission set by default and cannot be removed.
Navigating to SEC Code Configuration Page
In the Merchant Portal, on the left side panel → click on Options → Settings → under Transaction Options click on SEC Code Configuration.
What are SEC Codes?
NACHA requires that when a transaction is submitted for processing, the transaction must include something called a Standard Entry Class (SEC) Code (a three letter code) to communicate exactly how the customer gave you authorization to debit/credit their bank account. It is imperative for the merchant to provide the proper Entry Method (SEC codes) within each ACH transaction based on the form of authorization they receive from their customer. Merchants should check with their ACH Processor on any prearranged agreement on which SEC codes they should be using.
When an ACH/eCheck transaction is processed, the Proof of Authorization (POA) must be received and maintained by the merchant. The POA can be obtained in many different methods. The different types are represented by SEC Codes. SEC Codes are NACHAs required Standard Entry Class code attached to an ACH transaction to identify how the transaction was initiated. An SEC code is required on each transaction and it must match the way the Proof of Authorization is obtained from the customer per NACHA guidelines.
SEC Code Configuration
When you're in the Virtual Terminal Check Sale page, this default SEC Code will be auto-selected in the Entry Method (SEC code) field:
The merchant will still have the option to select a different SEC Code in the Virtual Terminal Check Sale page on a per transaction basis from the Entry Method (SEC code) dropdown. If the merchant does have a default SEC code set, they have to keep in mind that they need to provide the proper Entry Method (SEC codes) within each ACH transaction.
The SEC codes that are seen in the dropdown depends on the merchants Electronic Check Processing Platform. For example, if the merchant is using our in-house Electronic Check processor and they've been approved for PPD and CCD, they will only see these SEC Code options in the dropdown.