A Local Bank Committed To Berks County

Important Update: NACHA Rule Changes for ACH Transactions

 
National Automated Clearing House Association (NACHA) has announced an upcoming rule change that will affect how certain ACH transactions are identified and processed. This update is intended to improve clarity, consistency, and transparency across the ACH network.

Effective March 20, 2026, NACHA will require the standardized use of specific transaction descriptions for certain 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 requirement applies to all commercial originators that initiate these types of ACH transactions. Standardized descriptions help improve transaction identification, reconciliation, and transparency for both originators and recipients.

Compliance with this rule is mandatory by March 20, 2026. Transactions that do not meet the new requirements may experience processing delays or other issues.

Businesses are encouraged to begin reviewing and updating ACH templates and internal processes as soon as possible to ensure a smooth transition.

Action Required for ACH Originators

action required for ach originators


ACH Fraud Monitoring Requirements

The new NACHA rule requires non-consumer ACH Originators to use risk-based processes to identify potentially fraudulent ACH transactions. This includes detecting:
  • Unauthorized entries (e.g., account takeover)
  • Payments approved under false pretenses (e.g., BEC, vendor or payroll impersonation)
 

REQUIRED ACTIONS BY ACH ORIGINATORS INCLUDE

  • Establishing procedures to identify high-risk ACH entries
  • Reviewing and updating those procedures at least annually
  • Assessing transaction risk and applying monitoring where risk is highest
 

What You Need to Do

  • Populate the Entry Description field for all new ACH payments
  • Update existing ACH templates:
    • Use “PAYROLL” for payroll-related ACH credits
    • Use “PURCHASE” for e-commerce ACH debits
  • Verify all applicable transactions are labeled correctly
  • Contact your payroll, accounting, or treasury software provider to confirm updates
  • Update ACH import files with your technical team or service provider, if applicable

Business Fraud
Prevention Resources

Find fraud prevention tips and examples of scams targeting businesses at our Fraud Resources page.​
 

Personal Banking

Business Banking

Resources

About Us

Questions or Comments

717-274-5180, (Option 1)

Member FDICEqual Housing Lender

Transparency in Coverage MRF

WEBSITE ACCESSIBILITY STATEMENT: At JBT, we continually look for ways to improve our clients’ website experience. Our efforts are based on standards for Web Content Accessibility Guidelines 2.1, Level AA. It is JBT’s policy to ensure that persons with disabilities have the opportunity to benefit from our services through the JBT website. JBT strives to create an experience where individuals with disabilities are not excluded from our website and other JBT services.

© 2026 Jonestown Bank & Trust Co.