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I am designing a circuit that plugs into a 12VAC source and I'd like to add a resettable fuse/PPTC for over-current protection. There's plenty of info on using such fuses for DC but I can't confirm if say a 16VDC fuse can also be used in a 16VAC circuit. Fuse datasheet: http://www.mouser.com/ds/2/643/0ZCJ-526721.pdf
I'd appreciate any extra info on the matter.
Yes, you can use the fuse as long as you are within limits. 16VAC rms is ~23V peak. If your device can stand that voltage and current is not over limits it works as expected. It is the excess current that is heating PPTC and by that increasing it's resistance. So in your case if you choose PPTC with VDC >25V you are ok.
