This upcoming change to Nacha rules will impact how certain ACH transactions are identified and processed. This update is designed to enhance clarity and consistency for all parties involved in ACH payments.
Cash Management
Summary of Nacha Rule Changes
Effective March 20, 2026, Nacha is requiring the standardized use of specific transaction descriptions for ACH entries:
- ACH credits related to wages: Must use the description “PAYROLL“
- ACH debits related to e-commerce purchases: Must use the description “PURCHASE“
This rule applies to all commercial originators initiating these types of transactions. The goal is to improve identification, reconciliation, and transparency for both originators and recipients.
Please note that compliance with this rule is mandatory by March 20, 2026.
Non-compliance may result in processing delays or other issues. We recommend beginning to review and update your templates and ACH processes as soon as possible to ensure a smooth transition.
What you need to do:
- For all newly created ACH payments, populate the Entry Description field.
- For existing ACH Template: Update your payroll templates to include “PAYROLL” in the Entry Description field for all relevant payroll credits, and “PURCHASE” for all relevant e-commerce debits.
- Ensure that all ACH credits for wages are labeled with “PAYROLL” in the Entry Description field.
- Ensure that all ACH debits for e-commerce purchases are labeled with “PURCHASE” in the Entry Description field.
- If you use a third-party payroll or accounting software, reach out to them to understand how to implement this change and make sure your systems are updated accordingly.
- If you use an import file for ACH transactions, please coordinate with your technical teams or third-party service providers to make necessary updates before the rule takes effect.
Action Required for ACH Originators
Questions?
If you have any questions about this rule change or need assistance updating your ACH templates, please call us at 800-460-2070 or email us.