What Does PPD Mean on a Bank Statement?
PPD stands for Prearranged Payment and Deposit.
What PPD means
PPD is a Standard Entry Class (SEC) code from Nacha, the organization that sets the rules for the US ACH network. It marks an ACH entry to or from a consumer account that the account holder authorized in advance. Common examples:
- Direct deposit of a paycheck or benefits
- Recurring bills you set up with a signed form or autopay agreement, such as insurance premiums, utilities, gym memberships, or loan payments
How PPD appears on a bank statement
PPD usually appears at the end of an ACH entry, after the company name. Some banks also show the company’s ID number. Illustrative examples:
ACH DEBIT ACME INSURANCE PREMIUM PPD
ACME CORP PAYROLL PPD ID: 1234567890The exact wording depends on your bank.
What to do if you don’t recognize a PPD charge
- Search the company name and ID. The name may belong to a payment processor or parent company.
- Check whether you signed up for autopay, or for a free trial that turned into a paid plan.
- Contact the company to cancel any payments you no longer want.
- Ask your bank to stop future payments to that company. The bank may ask you to confirm the request in writing.
- If you never authorized the payment, report it to your bank promptly. For personal accounts, federal rules generally give you 60 days after the statement is sent to report unauthorized electronic transfers.