XCK

What is Standard Entry Class (SEC) Code XCK?

SEC code XCK stands for Destroyed Check Entry. This SEC code is used in the context of Automated Clearing House (ACH) transactions, which are electronic payments or collections made through the ACH network. The transaction type for XCK is a Debit Entry.

XCK is used for transactions where physical checks have been destroyed and cannot be processed through traditional check clearing methods. This code allows for the checks to be converted into electronic entries for processing through the ACH network. The authorization for XCK transactions is based on the original check that was written and subsequently destroyed. The payee or financial institution handling the destroyed check initiates the conversion to an electronic entry.

XCK transactions are processed as ACH entries, meaning the funds are electronically transferred from the check writer’s bank account to the payee’s account. This provides a way to handle checks that are otherwise unprocessable due to their physical condition. XCK is used in situations where checks are destroyed due to unforeseen events, such as:

• Natural disasters (e.g., floods, fires)
• Accidents (e.g., physical damage to the checks)
• Any other circumstances where the physical check is rendered unusable