Upcoming Nacha rule updates may affect your business.

Nacha has announced new rules that may affect your ACH processes, templates and internal fraud controls. Please review this information carefully.

Effective March 20, 2026

• All ACH originators, including third-party service providers, must use the following standardized ACH Company Entry Descriptions:
• PAYROLL – Required for wage-related PPD credits
• PURCHASE – Required for e-commerce WEB debits
• Originators and/or providers who originated more than six million ACH transactions in 2023 must adhere to new fraud prevention measures:
• Implement risk-based fraud detection processes for ACH entries (screening entries before they are submitted is NOT required.)
• Conduct annual reviews of these processes
• Learn about these fraud protection measures. 

Effective June 19, 2026

• ALL originators and providers who originate ACH transactions must now implement fraud detection processes and annual reviews as noted above.

Recommended Next Steps

• Review ACH templates to ensure “PAYROLL” and “PURCHASE” descriptors will be used correctly. Feel free to make modifications now as you process batches to ensure you are compliant before the deadline.
• Review your ACH volume to determine whether you fall into the March or June timeline for fraud prevention.
• Assess current fraud detection capabilities and identify gaps.
• If needed, engage your third-party service provider or internal technology resources to prepare for required updates.

Additional information regarding Nacha Rules and Risk Management Resources for Originators can be found on the Nacha website.

Please reach out to us between 8:30 a.m. to 5 p.m. local time if you have any questions.

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Eastern Time     855.282.8655
TMClientService@pnfp.com