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SEC Codes

POP

An SEC code is a three letter code that describes how a payment was authorized by the consumer or business receiving an ACH transaction. SEC stands for 'Standard Entry Class'. SEC codes are defined and maintained by NACHA, the governing body for the ACH network.

SEC Code
POP
Definition
Point of Purchase Entry
Transaction Type
Debit Single Entry
Account Type
Consumer or Non-Consumer
Requirement
Agreement: Posted Notice and in writing and signed, or similarly authenticated

What is Standard Entry Class (SEC) Code POP?

SEC code POP stands for Point of Purchase Entry. This SEC code is used in the context of Automated Clearing House (ACH) transactions, which are electronic payments or collections made through the ACH network. The transaction type for POP is a single entry ACH debit.

POP specifically relates to transactions where a consumer check is converted to an electronic payment at the point of sale. POP is used for transactions where a paper check is presented by the consumer at the point of purchase (e.g., in a retail store), and the check is converted into an electronic ACH debit.

At the point of purchase, the merchant scans the check, captures the necessary information (account number, routing number, etc.), and then returns the voided check to the consumer. The transaction is then processed as an ACH debit. The consumer authorizes the conversion of their check into an electronic payment by providing the check and typically signing a receipt or providing other necessary consent.

This SEC code is commonly used in retail environments where customers prefer to pay by check but the merchant wants to process the payment electronically for faster and more efficient handling.

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