# ACH Standard Entry Class (SEC) handling

Learn how SEC codes are determined for ACH transfers.

Each ACH transaction has an associated Standard Entry Class (SEC) code that describes the accounts involved and how the transaction was authorized.

Stripe Treasury determines the SEC code based on whether the account receiving the ACH entry is owned by a company or an individual. You specify the account holder type in [destination_payment_method_data.us_bank_account.account_holder_type](https://docs.stripe.com/api/treasury/outbound_payments/create.md#create_outbound_payment-destination_payment_method_data-us_bank_account-account_holder_type) when:

- You make [OutboundPayments](https://docs.stripe.com/treasury/moving-money/financial-accounts/out-of/outbound-payments.md)
- You set up a [stored PaymentMethod](https://docs.stripe.com/treasury/moving-money/working-with-bankaccount-objects.md#setupintents)

Only send [InboundTransfers](https://docs.stripe.com/treasury/moving-money/financial-accounts/into/inbound-transfers.md) and [OutboundTransfers](https://docs.stripe.com/treasury/moving-money/financial-accounts/out-of/outbound-transfers.md) to accounts owned by the FinancialAccount owner and with a `company` owner type.

SEC codes are determined based on the receiving account’s owner type as follows:

| Money movement   | Owner type   | SEC code |
| ---------------- | ------------ | -------- |
| InboundTransfer  | `company`    | `CCD`    |
| OutboundTransfer | `company`    | `CCD`    |
| OutboundPayment  | `company`    | `CCD`    |
| OutboundPayment  | `individual` | `PPD`    |