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
Improve Record Keeping
Increase Communication
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.
