What Does the Banking Term “CCD” Mean?

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Companies only need a computer and a keyboard for CCD transfers.

The term “CCD”, when used in banking, refers to cash concentration and disbursement for corporate credits and debits. CCD is a type of Automated Clearing House electronic payment format that provides rapid, secure transfers for which funds clear overnight through the ACH network. The National Automated Clearing House Association, more typically referred to as NACHA, developed CCD to enable corporations to make intra-company transfers or invoice payments to suppliers via electronic fund transfer.

Usage and Benefits

In banking, cash concentration and disbursement provides corporate customers with a banking-driven cash management technique that enables them to retain their cash for as long as possible. Through the use of CCD, corporations can improve their operational cash flow and reduce the amounts they hold in their operating checking accounts. They can consolidate available and incoming funds in one account during the day, then disburse payments after hours to other related or unrelated businesses. In addition, CCD usage allows corporations to keep their cash in money market funds or similar short-term instruments which earn higher interest rates than do checking accounts.


NACHA originally designed the CCD format for gathering and concentrating intracompany cash in one account then disbursing the cash to corporate divisions and subsidiaries as needed. NACHA restricts CCD usage to transfers to or from corporate accounts. These can be one-time transfers or recurring, periodic transfers. In addition to the funds transfer, the CCD can include a small amount of payment-related identifying data. Unrelated companies utilizing CCD to transfer funds to the other must have an agreement on file authorizing the transfers.


An Automated Clearing House network enables financial institutions to use batch processing and delivery to distribute and settle electronic transactions. ACH helps financial institutions and the corporations they serve by reducing banking transaction costs to a minimum while improving security and efficiency. CCD is one of the two primary formats corporations use for ACH transactions. CCD generally only allows for payment information with no room for full remittance data.

Vendors and Access

The use of CCD can also help large corporations improve their vendor relations. CCD eliminates the needs for paper checks, which reduces issues related to missing checks including stalled deliveries and irate suppliers. Because corporations can count on the funds transferring when scheduled, CCD helps them streamline their receivables processing and systems. In addition, most ACH system providers offer customizable online systems that enable corporations with multiple divisions and offices to access the system from anywhere without the need for software installation. The system providers also assist with troubleshooting, all of which contributes to significant cost reductions for the companies that use CCD.