What Your Business Needs to Do
Nacha has introduced new requirements that will affect how ACH Originators process transactions in early 2026. These changes are intended to reduce fraud, improve transaction transparency, and support safer electronic payments. United Community is here to help you prepare.
Rule 1: Fraud Monitoring by Originators
What’s Changing
All non‑consumer ACH originators must have risk‑based procedures designed to detect and prevent fraudulent ACH activity. These procedures must be:
- Implemented in your ACH processes
- Reviewed at least once per year
- Updated as fraud threats evolve
Organizations that do not currently use fraud‑monitoring tools may need to implement new systems or processes. Contact our Treasury Management support team for assistance. Call 1-866-270-6100 or email t[email protected].
Fraud Monitoring Scope and Effective Dates
The rule will be implemented in two phases:
- Phase 1 - March 20, 2026:
Applies to ACH Originators, Third‑Party Service Providers, and Third‑Party Senders with more than 6 million ACH entries originated in 2023. - Phase 2 - June 19, 2026:
Applies to all remaining non‑consumer ACH Originators.
How to Prepare to Take Action
- Implement fraud detection processes if your business does not already use them.
- Review available fraud‑prevention resources, including United Community’s webinar on Preventing Business Email Compromise (BEC). Access the recorded session here.
Rule 2: New Standard Company Entry Descriptions
What’s Changing
Nacha is introducing two mandatory Company Entry Descriptions:
“PAYROLL”
Must be used for ACH credits using the PPD Standard Entry Class Code that represent compensation (wages, salary, bonuses, etc.). This update helps institutions better identify payroll-related fraud attempts.
“PURCHASE”
Must be used for consumer‑authorized e‑commerce debit entries.
Effective Date
These descriptions may be used immediately but must be implemented no later than March 20, 2026.
How to Prepare to Take Action
- Update payroll files to include the Company Entry Description PAYROLL.
- Update applicable e‑commerce transactions to include the Company Entry Description PURCHASE.
We’re Here to Help
If you have questions or would like assistance preparing for these upcoming requirements, contact our Treasury Management support team by calling 1-866-270-6100 or emailing t[email protected].
Frequently Asked Questions
Absolutely. Our team is ready to support you in meeting these requirements and ensuring a seamless transition.
View the Digital Demo for sending an ACH Payment.
Contact our Treasury Management support team by calling 1-866-270-6100 or emailing[email protected].
- Fraud Monitoring by Originators
- Standard Company Entry Descriptions – PAYROLL and PURCHASE
- Applies to entities that originated more than 6 million ACH entries in 2023.
- Applies to all remaining non consumer Originators.
- Evaluate and implement fraud-monitoring tools or processes.
- Conduct annual reviews of fraud related procedures.
- Review educational materials, such as United Community’s Preventing Business Email Compromise (BEC) webinar.
PAYROLL
Required for PPD credits used for:
- Wages
- Salaries
- Bonuses
- Commissions or similar compensation
Required for consumer authorized e-commerce debit entries for the online purchase of goods.
- PAYROLL: Helps financial institutions more easily identify payroll payments and reduce payroll redirection fraud.
- PURCHASE: Helps distinguish e-commerce transactions within ACH activity.
- Update payroll systems so ACH files reflect PAYROLL as the Company Entry Description.
- Update e-commerce systems so applicable transactions use PURCHASE.
- Article Two, Subsection 2.2.4 – Fraud Monitoring
- Appendix One, Part 1.2 – Standard Company Entry Descriptions
