As digital payments continue to shape the way businesses operate, ACH remains an important option for moving money securely and efficiently. However, with the rise of sophisticated fraud schemes, such as Business Email Compromise (BEC) and fake vendor requests, the need for stronger safeguards has never been greater. Recognizing these challenges, NACHA, the governing body for ACH payments, is introducing a series of mandatory rule changes beginning in March 2026. These updates are designed to bolster security, reduce fraud, and ensure clearer payment practices for organizations of all sizes.
Why Are These Changes Important?
Fraud targeting payment systems is on the rise, threatening both financial assets and reputations. According to the 2025 AFP Payments Fraud and Control Survey, 31% of financial professionals observed an increase in fraud activity over the past year, which includes ACH fraud.
NACHA’s new rules aim to protect businesses by requiring robust fraud detection processes and standardized payment descriptions. While compliance with these new requirements is important, adapting to the changes will help your organization avoid potential financial setbacks and keep operations running smoothly. Taking proactive steps now can make the transition easier and support your business’s ongoing success.
What’s Changing?
Several important changes are coming to ACH payment practices.
First, mandatory fraud detection will be required. For businesses processing over six million ACH transactions annually, these requirements take effect in March 2026. By June 2026, all businesses, regardless of size, will need to comply. Organizations will be expected to implement risk-based fraud detection systems to help identify suspicious transactions, review their fraud detection processes each year, and ensure staff are trained to recognize warning signs, such as sudden changes in vendor payment details.
Another significant update involves standardized payment descriptions. ACH files must now use specific terms, “PAYROLL” for wage payments and “PURCHASE” for e-commerce transactions. This means accounting or ERP systems will need to be updated to meet the new formatting rules.
To prepare, businesses should start by checking their ACH transaction volume to determine if early compliance is required. It’s also important to update internal controls, documenting fraud prevention steps and reviewing them regularly. Reviewing payment templates to ensure descriptions meet the new standards is recommended, as is training staff to increase awareness and help prevent fraud. Finally, consulting with your bank can provide valuable guidance on tools and best practices for compliance.
Early preparation is critical. Businesses that take the initiative now to review and update their internal controls, train staff, and consult with their financial partners will be best positioned to comply with the new standards and minimize exposure to fraud. Waiting until the last minute could lead to rushed implementations, overlooked vulnerabilities, and potentially costly disruptions to your payment operations.
Industry experts emphasize that these changes are among the most significant in two decades, reflecting the urgent need for organizations to move beyond static policies and adopt dynamic, risk-based monitoring practices. Automation, regular risk assessments, and ongoing staff training are now considered best practices, not just for compliance, but for long-term business resilience.
Why Are These Changes Important?
Fraud targeting payment systems is on the rise, threatening both financial assets and reputations. According to the 2025 AFP Payments Fraud and Control Survey, 31% of financial professionals observed an increase in fraud activity over the past year, which includes ACH fraud.
NACHA’s new rules aim to protect businesses by requiring robust fraud detection processes and standardized payment descriptions. While compliance with these new requirements is important, adapting to the changes will help your organization avoid potential financial setbacks and keep operations running smoothly. Taking proactive steps now can make the transition easier and support your business’s ongoing success.
What’s Changing?
Several important changes are coming to ACH payment practices.
First, mandatory fraud detection will be required. For businesses processing over six million ACH transactions annually, these requirements take effect in March 2026. By June 2026, all businesses, regardless of size, will need to comply. Organizations will be expected to implement risk-based fraud detection systems to help identify suspicious transactions, review their fraud detection processes each year, and ensure staff are trained to recognize warning signs, such as sudden changes in vendor payment details.
Another significant update involves standardized payment descriptions. ACH files must now use specific terms, “PAYROLL” for wage payments and “PURCHASE” for e-commerce transactions. This means accounting or ERP systems will need to be updated to meet the new formatting rules.
To prepare, businesses should start by checking their ACH transaction volume to determine if early compliance is required. It’s also important to update internal controls, documenting fraud prevention steps and reviewing them regularly. Reviewing payment templates to ensure descriptions meet the new standards is recommended, as is training staff to increase awareness and help prevent fraud. Finally, consulting with your bank can provide valuable guidance on tools and best practices for compliance.
Early preparation is critical. Businesses that take the initiative now to review and update their internal controls, train staff, and consult with their financial partners will be best positioned to comply with the new standards and minimize exposure to fraud. Waiting until the last minute could lead to rushed implementations, overlooked vulnerabilities, and potentially costly disruptions to your payment operations.
Industry experts emphasize that these changes are among the most significant in two decades, reflecting the urgent need for organizations to move beyond static policies and adopt dynamic, risk-based monitoring practices. Automation, regular risk assessments, and ongoing staff training are now considered best practices, not just for compliance, but for long-term business resilience.