For ACH payments, each payment transmitted must have an SEC code per NACHA rules and regulations. If a transaction is missing an SEC code, then it will likely result in an error Transaction type not allowed from this source.
ACH SEC Codes and What They Mean
SEC Code | Debit | Credit | Description |
|---|---|---|---|
PPD | Yes | Yes | Prearranged Payment and Deposit entry (consumer payment such as recurring billing) |
CCD | Yes | Yes | Corporate Payment Entry (business to business payments such as vendor payments) |
WEB | Yes | No | Internet-Initiated Entry (consumer initiated via web, such as through a web browser or payment link) |
TEL | Yes | No | Telephone-Initiated Entry (telephone payment such as consumer dialing in to pay bill) |
How to fix Transaction type not allowed from this source error
It is likely that your account was boarded without all four SEC codes. You’ll need to reach out to your account rep to get an ACH update form that will mirror your pricing across all SEC codes. Once this is done, it takes about 48-72 hours to register with the ACH processor.