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 authorised.
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 when:
- You make OutboundPayments
- You set up a stored PaymentMethod
Only send InboundTransfers and OutboundTransfers 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 |