What does PPD mean in banking?

PPD is mostly seen in the banking process. Many banks have different types of ACH payments. If you want to learn more about the details of it, then this article. This article has its requirements, benefits, types, etc.

What is PPD?

‘PPD’ means Prearranged Payments and Deposit entry, where is a credit or debit to the customer’s bank account. Mainly it is either the single (or) recurring payments. It is one of the SEC codes and the most popular ones.

List of some SEC codes:

  1. Prearranged Payments and Deposits.
  2. Telephone-initiated entries.
  3. Internet-initiated entries.
  4. Corporate credit or debit.

Requirements for authorization:

There are some requirements to make Prearranged Payments and Deposit transactions. They are,

  • The client should be able to understand the authorization form easily
  • Should be able to understand the ACH transactions.
  • It should include the details like the transaction amount, dates of process, and customer’s bank account details.
  • Exact details about how to revoke the authorization.
  • It should not include credit transaction information.
  • The issue must keep the signed authorization copy for two years.

PPD transaction types:

There are two types of PPD transactions in the banking process. They are,

One-time Payments:

One-time payment means the customer pays a single payment for a service or product.

E.g., Buying furniture, arts, etc.

How to authorize one-time payments:

  • The customer should sign the form with clear details about the processing date, amount, and other bank account details.
  • They should secure the signed form for two years in digital or paper form.

Recurring payments:

Paying the amount every month on a particular day for any products or services is called a recurring payment.

How to authorize recurring payments:

  • The customer signed the form with the correct date, amount, and bank details.
  • They should secure the form digitally or on paper for two years after the last payments.
  • The receipt should be sent via email.

Types of PPD debits:

There are various types of Prearranged payments and deposits. They are:

  • Gym membership.
  • E-giving.
  • Loans repayment.
  • Internet services.
  • Insurance premiums
  • Cable bills.
  • Utility bills.


The following are the benefits of PPD debits.

  • It is very easy to eliminate the check handling procedures.
  • The settlement process is faster compared to others.
  • The customer gets notifications faster about the returned items.

Frequently asked questions (FAQs):

What is the main difference between CCD and PPD?

CCD and Prearranged Payments and Deposits are the two common SEC codes in banking. CCD means the transitions are done only for corporate accounts, but PPD means transactions to or from the consumer account.

What is PPD mean?

PPD means Prearranged Payments and Deposits.

Is PPD the same as SEC codes?

PPD is one of the famous SEC codes used for payments and deposits.

How to find a Prearranged Payments and Deposits id?

You should go to the virtual check transaction processing screen to know the Prearranged Payments and Deposits ID. Next, scroll down to see the ‘Originator ID.’

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