Menu
Menu
As part of ongoing efforts to improve transparency and reduce fraud across the ACH network, Nacha, the governing body for ACH transactions, has announced several rule changes that will take effect on March 20, 2026. This is a Nacha network requirement and applies to all U.S. financial institutions.
If your business used ACH to pay employees, collect payments, or send electronic payments, some updates may be required. Fidelity Bank is sharing this information early so you have time to prepare and avoid any disruption to your ACH services.
Any ACH payment used to pay wages, salaries or similar compensation must now include the word “PAYROLL” in the Company Entry Description field.
If your payroll entries currently use descriptions such as “ACH,” Direct Deposit,” “Weekly Pay,” “Commission,” or “ACH Batch,” they must be changed to include “PAYROLL” before March 20, 2026.
Please note: Using the word “Payroll” does not confirm or guarantee employment status. It is strictly a standardized description requirement.
Businesses that sell goods or merchandise online or via text (typically using ACH WEB entries) must now include the word “PURCHASE” in the Company Entry Description.
This requirement applies only if your business:
It does not apply to:
If you’re unsure whether this applies to your business, your Fidelity Bank team can help you determine next steps.
Your business must:
These procedures may be reviewed by Fidelity Bank as part of our responsibility as your ACH provider.
For many businesses, this documentation already exists as part of:
In many cases, it simply needs to be formalized or labeled to include ACH activity.
Failure to comply with these Nacha requirements could result in:
Our goal is to work with you well in advance to avoid any disruption.
We recommend that ACH users:
We're Here to Help
Fidelity Bank is committed to helping our business clients navigate these changes smoothly. While we cannot create fraud monitoring procedures on your behalf, we are happy to:
