2026 Nacha Rule Updates
What is Nacha?
Nacha stands for the National Automated Clearing House Association, a private non-profit agency that governs the ACH (Automated Clearing House). The ACH Network is the payment system used in the U.S. for electronic transfers like direct deposit, automated payments, payroll, and other automated transfers. Most Americans touch the ACH Network without realizing it. Nearly all Social Security payments, 93% of salaries, and 91% of tax returns are processed through the ACH Network.
Why the New Rules
Nacha is implementing new amendments under its Risk Management Framework. In the past, only specific ACH transactions required active monitoring, but rising fraud and scam activity have prompted Nacha to broaden those expectations. The 2026 updates strengthen fraud-monitoring standards and distribute responsibility to more organizations involved in processing ACH payments. It's important to understand these new ACH Operating Rules to stay compliant in the months ahead.
Deadlines
Many larger originators in the ACH network must implement risk-based processes and procedures intended to identify ACH entries initiated due to fraud, including unauthorized entries and entries authorized under false pretenses. This applies to any business that sends six million or more ACH transactions annually.
For certain types of transactions, companies will now be required to use standard company entry descriptions in their ACH entries. “PAYROLL” must be used for employee wage payments, salaries, or other monetary compensation; and “PURCHASE” must be used for consumer-authorized purchases.
*Note: As June 19 is a federal holiday, the second phase will be put into effect the following Monday, June 22.
All other non-consumer originators, third-party service providers, and third-party senders must implement similar fraud monitoring and compliance requirements.
A comprehensive list of upcoming Rule amendments can be found on Nacha’s website.
How to Prepare
1. Review and Update ACH Systems
Evaluate your current ACH systems and processes to ensure they meet evolving Nacha requirements, including risk-based monitoring to identify potentially unauthorized entries. One way to do this is to monitor Receivers who suddenly change their account information, especially those who do this via email, text or fax. Additional layered security controls can be added such as dual controls, multi-factor authentication, and account validation tools.
2. Create or Update a Written ACH Risk Assessment Policy
Document how your organization identifies, evaluates, and monitors ACH fraud risks. Include procedures for detecting unusual activity, verifying payment instructions, and reviewing controls at least annually.
3. Maintain Detailed Documentation for Compliance and Audits
Maintain comprehensive records of ACH processes, risk assessments, control implementation, employee training, monitoring activities, and fraud prevention efforts to demonstrate compliance with current and upcoming Nacha Rule requirements.
Additional information to help Originators integrate these updates can be found in the 2026 Nacha Rule book. Chapter 15 specifically covers fraud monitoring and practical ways to stay compliant.
The information provided in this article is intended for general informational purposes only and does not constitute official guidance or regulatory advice. Nacha rules, guidelines, and requirements are subject to change, revision, or amendment at any time. For additional information, please refer to the Nacha Resource links provided or visit Nacha's official website.
