The CCD transaction type is used for permitting electronic debits between businesses. (Paper checks cannot be processed using the CCD code.) The major difference between CCD transactions and Business to Consumer transactions is the amount of time after the transaction in which it can be disputed. For the Business to Consumer codes (PPD, TEL, and WEB) the customer has 60 days to dispute. For CCD it is only 3 days. Thus, if you are billing another business, it is to your advantage to enter the transaction as CCD.
How to Authorize: To use the CCD code you must have a signed agreement in place with your business-to-business (B2B) customer stating that it agrees to allow you to debit its account. This can be a separate overriding agreement covering all transactions for one or more bank accounts, or it can be included in a one-time or recurring ACH authorization. It can also be included in terms and conditions of any contract you have with your B2B customer.
Have your B2B customer sign the overriding ACH Authorization (template below) or include similar language in the terms and conditions of your contract.
One-time transactions or recurring schedules can be authorized in writing, by phone, fax, or email.
Keep a copy of the agreement and authorizations for 2 years after the last transaction is processed.
Have your B2B customer sign and date a transaction authorization (template below) or include similar language in the terms and conditions of your contract that indicates:
Payment amount and date.
Bank information for account to be debited.
Statement that bank account is enabled for ACH.
Agreement to be bound by NACHA operating rules.
Keep a copy of the authorization for 2 years.
Have your B2B customer sign and date a transaction authorization (template below) or include similar language in the terms and conditions of your contract that indicates:
Payment amount and frequency.
Bank information for account to be debited.
Statement that bank account is enabled for ACH.
Agreement to be bound by NACHA operating rules.
Keep a copy of the authorization for 2 years after the last payment on the schedule.
Overriding
CCD ACH Authorization-One Account
Use this authorization form to establish an ACH agreement
with your B2B customer for one bank account.
Overriding
CCD ACH Authorization-Two Accounts
Use this authorization form to establish an ACH agreement
with your B2B customer for two bank accounts.
One-time
CCD Payment Authorization Form
Use this form to authorize a ONE-Time transaction.
Recurring
Billing Schedule CCD Authorization Form
Use this form to authorize the SAME recurring amount with
an OPEN end date.
Recurring
Billing Schedule CCD Authorization Form-Variable
Use this form to authorize a DIFFERENT recurring amount
with an OPEN end date.
Payment
Plan Schedule CCD Authorization Form
Use this form to authorize a SET number of payments of the
SAME amount each time.
If you don't have a written agreement with the company for CCD, you can process one-time telephone transactions using the TEL code (See TEL Transaction Authorization Guide above), or one-time and recurring Internet transactions using the WEB code (See One-time WEB Transaction Authorization Guide and Recurring WEB Transaction Authorization Guide.)—Just be sure you have confirmed that the bank account has been enabled for ACH. If you do this, the business will have the same 60 days to dispute the charge as a consumer would.
