Nacha Rules Updates

Nacha rules will be updated this year with additional requirements added to support a more proactive approach to improve fraud detection and prevention. These changes affect ACH Originators, Third-Party Payment Processors (TPSP), and Third-Party Senders (TPS). Compliance is mandatory, and effective dates begin in March 2026.

What’s Changing?

1. Fraud Monitoring Requirements

  • Originators, and TPSP/TPS, must implement risk-based processes to identify entries suspected of being unauthorized or authorized under false pretenses.

  • Processes must be reviewed and updated annually to address evolving risks.  

2. Standard Company Entry Descriptions

  • “PAYROLL” for ACH credits related to wages, salaries, and similar compensation.

  • “PURCHASE” for consumer-authorized e-commerce debit entries.

 

When do the changes take effect?

  • Standard Company Entry Descriptions: Effective March 20, 2026

  • Fraud Monitoring for Originators, TPSP/TPS: Effective June 22, 2026

 

What You Need to Do

  • Implement risk-based fraud monitoring controls and schedule annual reviews.

  • Update ACH file generation systems to include “PAYROLL” and “PURCHASE” descriptions.

  • Train your teams and prepare for the Rule changes effective dates (above).






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Other Resources

EPCOR, Busey's Payments Association, offers ACH Originator client education, providing free, on-demand courses. Find resources regarding the Nacha update on the Business User Resources page or Third-Party Sender page.

 

Need Assistance?

Our Treasury Management team is here to help you prepare.
800.749.7844 | tmsupport@busey.com