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CCD vs CTX Entries: When and How to Use Them

  • Ian Berryman
  • 5 days ago
  • 3 min read
CCD vs CTX entries

If you're paying vendors or other businesses using ACH, you’ll need to choose the correct Standard Entry Class (SEC) code in your NACHA file — but how do you choose between CCD and CTX for your business-to-business payments?


In this post, we’ll break down the differences, when to use each, and share real-world examples of how they’re used in business payments.


What Is a CCD Entry?

CCD stands for Corporate Credit or Debit. It’s the most widely used ACH entry type for business-to-business (B2B) transactions.


Use CCD when:

  • You're paying or pulling funds from a business or organization

  • You only need to send basic remittance information (up to 80 characters)

It’s simple, compatible with all banks, and perfect for straightforward payments.


What Is a CTX Entry?

CTX stands for Corporate Trade Exchange. Like CCD, it’s used for B2B ACH payments — but it supports large amounts of structured remittance data.


Use CTX when:

  • You're paying a vendor who expects detailed invoice-level remittance

  • The recipient requires automated reconciliation

  • You're transmitting data in EDI 820 format


CTX is ideal for larger organizations with complex accounts receivable systems, but it requires coordination with your trading partners and confirmation that their bank supports CTX.


Real-World Use Cases (In Story Format)


Use Case 1: Paying a Small Vendor (CCD)

Alex, the owner of a landscaping company, invoices your business for $3,000. It’s a one-time payment, and you don’t need to include any invoice details with the payment — just the money.

You select CCD in your ACH software, enter Alex’s bank info and the amount, and send the file to your bank.

The money arrives in Alex’s account without issue, and the job is done.


Use Case 2: Sending a Payment With an Invoice Reference (CCD)

Nora, your IT consultant, asks you to include her invoice number in the payments you send so she can match it in her system.

You use CCD and enter the invoice number (for example, “INV-4782 MAY”) in the addenda field.

When she receives the deposit, her bank passes the addenda along, and she matches it to her records without any confusion.


Use Case 3: Paying a Large Supplier With Multiple Invoices (CTX)

You're paying Industrial Supply Co., and the $25,000 transaction covers 12 different invoices. They use an automated accounting system that requires EDI 820-formatted remittance data for reconciliation.

In order to send the amount of remittance data they need, you use a CTX entry with multiple addenda.

You confirm their bank and systems can accept CTX, generate the EDI remittance data, and send the file. Their system imports the remittance and reconciles all 12 invoices automatically — no manual matching needed.


Things to Watch Out For

  • CTX support is not universal — confirm that your recipient and their bank can handle CTX addenda

  • CCD is limited to one 80-character addendum so you may have to get creative with what information you include.

  • If your recipient isn’t sure what type they need, start with CCD


Final Thoughts

Choosing the right entry type in your ACH file helps ensure smooth payment delivery, accurate reconciliation, and fewer questions from your vendors.

  • Use CCD for quick, simple payments with minimal remittance data

  • Use CTX when structured remittance is required by your trading partner


Make It Easy With ACH Pro

ACH Pro supports CCD and CTX entries — so you can generate the right type of ACH file for each vendor with confidence.

  • Easily enter addenda or EDI data when needed

  • Validate NACHA formatting automatically

  • Create payments from QuickBooks or spreadsheets easily


Try ACH Pro free and streamline your ACH payments today.



 
 
 
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