NACHA Operating Rule Changes
Updates to NACHA Operating Rules
As an originator of ACH transactions, your company is obligated to comply with all NACHA Operating Rules. The following list summarizes changes effective in 2026. For a complete list and description of amendments and Rule changes, visit www.nacha.org.
Summary of Rule Changes:
As part of ongoing efforts to reduce fraud and improve the recovery of funds, two new rules will take effect on March 20, 2026. These amendments introduce standardized Company Entry Descriptions—“PAYROLL” and “PURCHASE”—to bring greater transparency to transactions and strengthen risk mitigation. Here is what you need to know to stay compliant.
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PAYROLL: For all PPD Credits for direct deposit of wages, salaries, and similar types of compensation, including HSA contributions, the Company Entry Description field must contain the description PAYROLL. The Company Entry Description of “PAYROLL” must be entered in all caps.
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PURCHASE: For all e-commerce purchases, the Company Entry Description field must contain the description PURCHASE. Required for e-commerce WEB debits, including initial, recurring purchases. The Company Entry Description of “PURCHASE” must be entered in all caps.
How to Prepare:
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System updates: Work with your third-party service providers and internal IT teams to ensure systems you use to create ACH files can accommodate the required Company Entry Descriptions. This includes updating software to automatically populate the correct Company Entry Descriptions for applicable transactions.
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Policy review: Review your organization’s internal ACH policies and procedures to align with the upcoming changes.
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Early adoption: Consider implementing the changes before the mandatory deadline to ensure a smooth transition and avoid last-minute compliance challenges.
Failure to implement required rule changes may result in file processing delays and rejections.
Need Help?
Contact our Treasury Support Services Team at 800-453-8700 option 2 or by email at TreasurySupport@mercbank.com. Our Treasury Support Services Team is here to assist you during the business hours of 8:00 AM to 5:30 PM ET, Monday through Friday.
Additional Resources:
Frequently Asked Questions
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Will my direct deposit still go through?
Yes. In most cases, direct deposits such as payroll and government benefits will continue as usual. These NACHA rule changes are designed to improve fraud prevention, not interrupt payments, as long as the sender uses correct account information and submits files on time.
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Will my automatic payments and online bill pay still work?
For most customers, yes. Your existing automatic payments set up through Mercantile Online or Mobile Banking should continue as scheduled. We recommend you review upcoming payments and, around the transition date (March 20th, 2026), consider scheduling them slightly earlier for added peace of mind.
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Do I need to change my Mercantile routing or account number?
No. These NACHA rule changes do not change your Mercantile Bank routing number or account number. You only need to confirm that any employer, vendor, or service provider has your current information if you’ve recently opened or switched accounts.
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Will there be new or higher fees because of these changes?
NACHA rule updates themselves do not automatically create new fees. If any fee‑related changes apply in the future, we will communicate them clearly and in advance through our standard disclosure process.
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I originate ACH as a business. What should I focus on?
Pay close attention to any communications from your Mercantile Treasury team regarding file formats, submission times, and information requirements related to the 2026 NACHA updates. In some cases, cut‑off times or data fields may be updated. Your Treasury Management representative can walk you through exactly what applies to your organization.
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What should I do if something looks different or a payment doesn’t post when I expect?
Log in to Online or Mobile Banking to review your recent activity and scheduled payments. If you still have questions or something doesn’t look right, contact us right away so we can review it with you.
Contact our Treasury Support Services Team at 800-453-8700 option 2 or by email at TreasurySupport@mercbank.com. Our Treasury Support Services Team is here to assist you during the business hours of 8:00 AM to 5:30 PM ET, Monday through Friday.
This page is intended to provide awareness to the upcoming change to NACHA Rule Change in 2026. For additional detailed information, please visit the NACHA website (www.nacha.org).