Preparing for the 2026 Rule Changes
The National Automated Clearing House Association, known as Nacha, will implement new fraud monitoring requirements in 2026 that will affect how ACH Originators process transactions. There changes are intended to reduce fraud and improve the recovery of funds after fraud has occurred. Trustco Bank is here to help you prepare.
Rule 1: Fraud Monitoring by Originators
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 threat evolve
Organizations that do no currently use fraud-monitoring tools may need to implement new systems or processes. For assistance, call 800-670-3110.
Effective Dates:
- 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.
Rule 2: Company Entry Descriptions
Standard Company Entry Description – PAYROLL
This rule establishes a new standard description for PPD Credits for payment of wages, salaries and similar types of compensation. The Company Entry Description field must contain the description PAYROLL.
- RDFIs that monitor inbound ACH credits will have better information regarding new or multiple payroll payments to an account.
- A standard description for payroll payments can help support RDFI logic to provide or suppress early funds availability.
- The amendment is intended to reduce the incidence of fraud involving payroll redirections.
Standard Company Entry Description – PURCHASE
This amendment establishes a new standard description for e-commerce purchases; the Company Entry Description field must contain the description PURCHASE.
Language for the definition of e-commerce purchases:
- “For this purpose, an e-commerce purchase is a debit Entry authorized by a consumer Receiver for the online purchase of goods, including recurring purchases first authorized online. An e-commerce purchase uses the WEB debit SEC Code, except as permitted by the rule on Standing Authorization to use the TEL SEC Code.”
Effective Date:
Effective date of March 20, 2026 for both amendments. These are “no later than” dates, Originators may begin using the descriptions as soon as practical.
How to Prepare
- Update payroll files to include Company Entry Description PAYROLL.
- Update applicable consumer-authorizes e-commerce WEB debit entries for online purchases of goods to include the Company Entry Description PURCHASE.
Disclaimer: This is not intended to replace or substitute the Nacha Rules. It does not provide warranties or legal advice and is offered for educational purposes only.
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 800-670-3110.
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