What Is "PPD" on My Bank Statement?

PPD stands for Prearranged Payment and Deposit — an ACH bank transaction code for recurring direct debits like salary deposits, loan payments, or utility bills.

Plain-English explanation

PPD is an ACH (Automated Clearing House) transaction code indicating a prearranged electronic payment between a consumer and a company, such as a direct debit or payroll deposit.

Most common reasons this appears

• Salary or payroll direct deposit
• Recurring loan or mortgage payment
• Utility or subscription direct debit
• Government benefit payment

How to verify this charge

• Check the company name listed next to PPD on your statement.
• Match the amount to a known recurring payment or payroll schedule.
• Contact the originating company if the amount or timing seems wrong.

When to be concerned

• You don't recognize the company name on the PPD transaction.
• Amount is different from your usual salary or bill.
• Multiple unexpected PPD debits in the same month.

Part of: Peer-to-peer payments →