CCD vs PPD Entries: When and How to Use Them

When you create an ACH file to pay or pull funds from a recipient, one of the key decisions you'll need to make is whether to use a CCD or PPD entry type. These two codes define the nature of the transaction and who it's going to — and choosing the right one helps ensure your payment is processed smoothly.

In this post, we’ll explain the difference between CCD and PPD entries, when to use each, and give you practical examples you can follow.

What Is a PPD Entry?

PPD stands for Prearranged Payment and Deposit. It’s used for ACH transactions involving individuals or personal bank accounts.

Use PPD when:

• You're paying an employee, contractor, or other individual

• You're debiting a customer's personal account

• The bank account is not tied to a business entity

PPD is commonly used for:

• Payroll direct deposit

• Customer billing (ACH debits)

• Expense reimbursements

• Government benefits

What Is a CCD Entry?

CCD stands for Corporate Credit or Debit and is used for business-to-business (B2B) ACH payments.

Use CCD when:

• You're sending a payment to a business or organization

• The recipient’s bank account is used for commercial purposes

• You’re not including large amounts of remittance data (that would require CTX)

🔍 Key Differences

Feature	PPD	CCD
Recipient type	Individual (consumer)	Business or organization
Addenda support	Optional (1 allowed)	Optional (1 allowed)
Usage examples	Payroll, customer billing	Vendor payments, B2B transfers
Authorization	Typically via signed agreement	Business-level agreement
NACHA rules applied	Consumer protection rules apply	Commercial rules apply

Real-World Use Cases (In Story Format)

Use Case 1: Paying a Freelancer (PPD)

Emily, a freelance graphic designer, completed a one-off project for your company and sent over her invoice. She gives you her personal checking account info. You want to send her $1,500 electronically.

Since she’s an individual, not a business, you use a PPD entry type in your ACH software. The money lands in her personal account on the effective date entered in your ACH file, typically next day.

Use Case 2: Paying a Business Vendor (CCD)

Brian, the owner of a printing company, bills your company $4,200 for a large run of marketing materials. His invoice includes routing and account numbers for his business checking account.

Since this is a B2B payment, you use a CCD entry in your ACH file. Just like a PPD, funds are available on the effective date entered in the file, typically next day.

Why Entry Type Matters

• If you send a CCD to a consumer’s personal account, it might fail or be returned by the receiving bank.

• If you send a PPD to a business account, it will likely go through, but the wrong rules may apply — especially in cases of disputes or reversals.

• Consumer transactions (PPD) are subject to more regulatory protections (e.g., Regulation E), while CCD transactions follow business rules (e.g., tighter return windows). Even if you send a PPD to a business account, the entry can be returned outside of the typical business return window because consumer rules apply.

  
  

Best Practices

• Ask your recipient: Is this a personal or business account?

• Use PPD for payroll, reimbursements, and consumer debits

• Use CCD for vendors, contractors with LLCs, or any registered business entity

• Keep records of authorization for all ACH transactions

  
  

Simple rule of thumb: if it’s not a personal bank account, it’s probably a CCD.

ACH Pro Makes It Easy

With ACH Pro, you can select the right entry type for every recipient with just a click — no guesswork, no formatting errors.

• Quickly switch between PPD and CCD as needed

• Create payments from QuickBooks and Excel files

• Generate NACHA-compliant ACH files that can be processed by almost every bank in the U.S.

Try ACH Pro Free and streamline your ACH payments today.

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