ACH - NACHA OPERATING RULE CHANGES
Rule Changes (Rule amendments) Effective March 20, 2026
Summary
These Fraud Monitoring Phase 1 Rule amendments become effective on March 20, 2026 and are part of a larger Risk Management package intended to reduce the incidence of successful fraud attempts and improve the recovery of funds after frauds have occurred.
Included in this summary of the Risk Management Rule amendments are the Phase 1 requirements related to:
- Fraud Monitoring by Originators, Third-Party Service Providers/Third Party Senders and ODFIs;
- ACH Credit Monitoring by RDFIs; and
- Company Entry Descriptions
- Fraud Monitoring by Originators, Third Party Service Providers (TPSPs), and ODFIs
(Effective date - Phase 1: March 20, 2026 for all ODFIs and non-Consumer Originators, TPSPs, and TPSs with annual ACH origination volume of 6 million or greater in 2023.)
This rule amendment will require all ODFI, and each non-Consumer Originator, Third-Party Service Provider, and Third-Party Sender with annual ACH origination volume in 2023 of 6 million or greater, to establish and implement risk-based processes and procedures reasonably intended to identify ACH Entries initiated due to fraud.
- RDFI ACH Credit Monitoring
(Effective date - Phase 1: March 20, 2026 for RDFIs with annual ACH receipt volume of 10 million or greater in 2023.)
The amendment will require RDFIs with annual ACH receipt volume of 10 million or greater in 2023 to establish and implement risk-based processes and procedures designed to identify credit Entries initiated due to fraud.
- Standard Company Entry Description – PAYROLL
- Standard Company Entry Description – PURCHASE
This amendment establishes a new standard description for e-commerce purchases; the Company Entry Description field must contain the description PURCHASE.
Language for the definition of e-commerce purchases:
“For this purpose, an e-commerce purchase is a debit Entry authorized by a consumer Receiver for the online purchase of goods, including recurring purchases first authorized online. An e-commerce purchase uses the WEB debit SEC Code, except as permitted by the rule on Standing Authorization to use the PPD or TEL debit SEC Code.”
Rule Changes (Rule amendments) Effective June 19, 2026
Summary
These Fraud Monitoring Phase 2 Rule amendments become effective on June 19, 2026 and are part of a larger Risk Management package intended to reduce the incidence of successful fraud attempts and improve the recovery of funds after frauds have occurred. As June 19 is a federal holiday, the practical effective date for these two rules will be the next banking day – Monday, June 22, 2026.
- Fraud Monitoring by Originators, Third Party Service Providers (TPSPs), and ODFIs
(Effective date - Phase 2: June 19, 2026 for all non-Consumer Originators, TPSPs, and TPSs that did not fall under the requirement threshold for Phase 1.)
This rule amendment will require all non-Consumer Originator, Third-Party Service Provider, and Third-Party Sender that did not fall under the requirement threshold for Phase 1, to establish and implement risk-based processes and procedures reasonably intended to identify ACH Entries initiated due to fraud.
- RDFI ACH Credit Monitoring
(Effective date - Phase 2: June 19, 2026 for all RDFIs that did not meet the threshold requirement for Phase 1.)
The amendment will require all RDFIs that did not meet the requirement threshold for Phase 1 to establish and implement risk-based processes and procedures designed to identify credit Entries initiated due to fraud.
The above is intended as a summary of the Rule amendments effective as of June 19, 2026. The fuller scope of technical details and impact of these Rule amendments, as communicated by Nacha, may be viewed at RISK MANAGEMENT TOPICS – Fraud Monitoring Phase 2 | Nacha.
For the complete Nacha Rules, please refer to the current publication of the NACHA Operating Rules and Guidelines (Nacha Rules). The Nacha Rules are published annually and are available for purchase at Products | Nacha. An additional resource, Nacha Resources for Treasury, Finance, and Payroll Professionals, may be accessed at Nacha Resources for Treasury, Finance and Payroll Professionals | Nacha.