ACH Rules: Reminders & Upcoming Changes

We would like to inform you of the changes that will occur this year, in addition to changes approved to occur in 2026.

2024 ACH Changes

General Rule for WEB Entries – Effective 6/21/24

• All consumer-to-consumer credits must be originated using the WEB SEC code, regardless of the method of authorization for the transaction.
• Third-party senders and peer-to-peer (P2P) vendors originating consumer-to-consumer transactions should update their records to ensure that P2P transactions are originated with the WEB SEC code and not PPD or TEL.

Expanded Use of R17 Return Codes – Effective 10/1/24

• Allows Receiving Financial Institutions to return entries that the financial institution has reason to believe are fraudulent using an R17 return code.
• Originators who receive items returned with an R17 code should conduct a thorough investigation of their records and authorizations before sending further items to the account in question. Originators seeing an increase in R17 returns should review their onboarding and account validation processes.

2026 ACH Changes

Standard Company Entry Description – Effective 3/20/26

• Payroll – PPD credits sent for payroll or similar types of compensation must contain the word PAYROLL in the Company Entry Description field.
• Purchase – E-commerce debit entries used for the online purchase of goods must contain the word PURCHASE in the Company Entry Description field.

This applies primarily to WEB debits, but can apply to the PPD or TEL SEC codes if used with a Standing Authorization.
 

Fraud Monitoring – Effective 6/19/26

• Rule is effective 3/20/2026 for originators with annual origination volumes over six million items.
• All originators, third-party service providers, and third-party senders are required to implement risk-based processes and procedures to identify fraudulent ACH entries.
• All parties are required to review these procedures and processes annually.
• These procedures should identify the various types of activity performed by the party and differentiate between the risks associated with these transactions.
• While monitoring does not have to occur prior to the processing of the transaction, it will offer the best opportunity to prevent the origination of fraudulent activity.  

 
To stay informed of upcoming changes to Nacha rules, we encourage you to bookmark the New Rules page on the Nacha website at www.nacha.org/newrules. If you have any questions about this information or your account(s) with us, please contact Treasury Management Client Support at (877) 840-8588 or [email protected]. We will be happy to assist you and look forward to continuing to serve your banking needs.