Updating the Company Entry Description to align with the 2026 Nacha Rules Update
The 2026 Nacha Rules Update, effective March 20, 2026, introduces standardized requirements for the Company Entry Description field in ACH files. These updates are intended to improve transaction transparency, support fraud monitoring, and help financial institutions more easily identify the purpose of ACH entries.
Under this rule update, Originators must use specific, standardized descriptions for certain transaction types:
- PAYROLL for PPD payroll credit files
- PURCHASE for WEB consumer e‑commerce debit files
To remain compliant, existing ACH setups and manual records may need to be updated to reflect these values exactly as required. The Company Entry Description is case sensitive and must be entered in all capital letters.
Table of Contents
- Updating PPD Files to PAYROLL
- Updating WEB files to PURCHASE
- Manual Record - Updating PPD Transaction to Payroll
- Manual Record - Updating WEB Transaction to Payroll
- Frequently Asked Questions (FAQs)
Updating PPD Files to PAYROLL
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To update the company entry description, click on the ACH Setup icon.
2. Proceed to Page 5 of the ACH Setup Wizard. Delete any text in the top field and type, 'PAYROLL'. This is case sensitive and does need to be in all capital letters.
3. Proceed to Screen 7 and click on 'Finish'.
Updating WEB Files to PURCHASE
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To update the company entry description, click on the ACH Setup icon.
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Proceed to Page 5 of the ACH Setup Wizard. Delete any text in the top field and type, 'PURCHASE'. This is case sensitive and does need to be in all capital letters.
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Proceed to Screen 7 and click on 'Finish'.
Manual Record - Updating PPD Transaction to PAYROLL
When adding a Manual Record, using the 'Add a Record' icon, the Company Entry Description is pre-set. Please follow the steps below to update the Company Entry Description.
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Click on ' Settings' on the top ribbon bar.
2. Click on 'Import System'
3. Scroll down until you find 'ACH Batch Description'.
4. Change the setting from 'No' to 'Yes'
5. Click 'Close'.
6. Return to the 'Home' tab on the top ribbon bar.
7. Click on 'Add a Record'.
8. In the 'Batch Header' field, delete the text and type 'PAYROLL'. This is case sensitive and does need to be in all capital letters.
9. Complete the transaction information as usual.
Manual Record - Updating WEB Transaction to PURCHASE
When adding a Manual Record, using the 'Add a Record' icon, the Company Entry Description is pre-set. Please follow the steps below to update the Company Entry Description.
-
Click on ' Settings' on the top ribbon bar.
- Click on 'Import System'
- Scroll down until you find 'ACH Batch Description'.
- Change the setting from 'No' to 'Yes'
- Click 'Close'.
- Return to the 'Home' tab on the top ribbon bar.
-
Click on 'Add a Record'.
- In the 'Batch Header' field, delete the text and type 'PURCHASE'. This is case sensitive and does need to be in all capital letters.
- Complete the transaction information as usual.
Frequently Asked Question (FAQs)
1. What is the Company Entry Description?
The Company Entry Description is a required ACH batch header field that identifies the purpose of the transactions within a batch. It is visible to Receiving Depository Financial Institutions (RDFIs) and helps them interpret the nature of the ACH activity.
2. When do these changes take effect?
The updated requirements take effect on March 20, 2026. ACH files created on or after this date must use the standardized Company Entry Descriptions to remain compliant with Nacha rules.
3. Which transaction types are affected?
The 2026 Nacha update affects:
- PPD payroll credit files, which must use PAYROLL
- WEB e‑commerce debit files, which must use PURCHASE
Other SEC codes are not impacted by these specific Company Entry Description requirements.
4. Does the Company Entry Description have to be in all capital letters?
Yes. The values PAYROLL and PURCHASE are case sensitive and must be entered in all capital letters. Using lowercase or mixed‑case text may result in non‑compliant ACH files.
5. What happens if the Company Entry Description is not updated?
ACH files that do not use the required standardized descriptions may be considered out of compliance with Nacha rules. This can increase the risk of processing delays, file rejections, or scrutiny from financial institutions.
6. Does this change affect previously processed ACH files?
No. The update applies only to files created or transmitted on or after the effective date. Previously processed ACH files do not need to be modified or re‑submitted.
