Explaining an Addenda Record

Addenda records can be added to certain types of transactions within the ACH Network as a note or memo containing information about a specific payment.

What Can Addenda Records Do For a Business?

Provide Additional Transaction Information

When doing hundreds or thousands of payments each week, including addenda information provides insight into a specific transaction.

Improve Record Keeping

Addenda information simplifies the reconciliation process for accounting and finance teams.

Increase Communication

Addenda records allow for both financial institutions involved in an ACH transaction to communicate addenda information.
ACH Transactions & Standard Entry Class Codes

An ACH entry’s specific transaction type is identified through the Standard Entry Class (SEC) code that is passed with each transaction. As one example, CCD (Corporate Credit or Debit Entry) is used for transactions between business bank accounts and is one of the SEC codes supported by Dwolla. CCD is a standard type of ACH entry that allows for an addenda record, which is commonly referred to as a CCD+ transaction.

Initiating CCD+ transactions allow for greater traceability for businesses that are doing hundreds or thousands of payments each week. With a shorter return window and greater assumption of good funds for both parties, CCD transactions allow businesses to have a more predictable cash flow with less concern for returns.

For more information on other types of SEC codes that Dwolla supports, reach out.

“We are looking to compete with larger businesses and being able to have access to payment features that will help make this possible is something that we are excited to expand on with Dwolla.”
Joe Edgar
CEO & Co-founder

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