Bravera Bank
The 2026 National Automated Clearing House Association (NACHA) Operating Rule changes introduce strengthened fraud‑prevention requirements and new standards designed to enhance security and transparency across the ACH Network. These updates take effect in two phases — March 20, 2026, and June 19, 2026 — and will affect financial institutions, originators and third‑party service providers.
1. Expanded fraud monitoring requirements
Beginning March 20, 2026, NACHA will require ACH participants — including originators, originating depository financial institutions (ODFIs) and third‑party providers — to implement risk‑based processes and procedures to detect entries initiated due to fraud. This expands fraud monitoring responsibilities beyond WEB debits and micro‑entries to include a broader range of ACH transaction types. The rules aim to reduce fraud, improve recovery of funds, and establish baseline activity patterns to help identify anomalies.
This rollout occurs in two phases:
- Phase 1 (March 20, 2026): Applies to high-volume non-consumer originators and third parties that originated 6 million or more ACH items in 2023.
- Phase 2 (June 19, 2026): Expands to all remaining originators and third‑party providers.
2. Standardized ACH company entry descriptions
Also, effective March 20, 2026, specific ACH transactions must use standardized Company Entry Descriptions:
- PAYROLL for all PPD credits related to wages or salary payments
- PURCHASE for all online consumer debit entries related to e‑commerce transactions
These changes aim to improve clarity, consistency and transparency across ACH files and assist financial institutions in more easily identifying transaction types.
3. Focus on preventing false pretenses fraud
The updated rules incorporate a more explicit definition of false pretenses, covering fraud schemes such as Business Email Compromise (BEC), vendor impersonation, and payroll diversion. NACHA now emphasizes the need for proactive fraud monitoring, shifting from simple account validation to verifying identity and detecting suspicious behavior before transactions are initiated.
4. Impact on businesses and financial institutions
These updates will require many organizations to evaluate and, in some cases, overhaul their internal fraud‑prevention practices. Businesses may need to work with their financial institutions to ensure monitoring systems are in place and undergo annual reviews to stay compliant. For treasury teams, the changes underscore the importance of establishing strong internal controls and leveraging fraud‑prevention tools.
Need Support?
Bravera’s Treasury Solutions team is here to help you navigate these rule changes, assess your ACH processes, and strengthen your fraud‑prevention strategy. Reach out anytime, we’re ready to support you as you prepare for the 2026 updates.