A PPD entry is a payment on the United States ACH network that credits or debits a consumer's bank account on the basis of an arrangement made in advance between the consumer and a company. PPD stands for Prearranged Payment and Deposit, and it is one Standard Entry Class code defined in the Nacha Rules. Credits include direct deposit of wages, pensions, expense reimbursements and tax refunds. Debits include recurring collections such as insurance premiums, loan repayments, utility bills and gym memberships.
For a PPD debit the company must hold the consumer's ACH authorization in writing, signed or similarly authenticated. Because the receiver is a consumer, the longer dispute period applies: an unauthorized debit can be sent back as an ACH return for sixty days after settlement. Debits authorized online use the WEB entry code instead, and payments to business accounts use the CCD entry.