Treasury Management News & Information
New Processing Requirement
Posted March 27, 2026
As of March 20, 2026, ACH Originators need to update the Batch Header Record of their files. For those sending payroll files, the word PAYROLL needs to be placed in the Company Entry Description field. Customers selling goods over the internet, must put the word PURCHASE in the same field when debiting customers for those goods.
If you use our ACH pass-thru service to submit your files, please reach out to your software provider for guidance on how to update your files going forward.
If you use templates within Online Banking, please make sure you are filling in the Company Entry Description field with the applicable word when you are initiating your files. If you are initiating a file for something other than a PAYROLL or internet PURCHASES, you can continue to put the first 10 characters of your company name in that field. (See screenshot below.)
New ACH Fraud Monitoring Requirements
Additionally, all originators are asked to implement risk-based processes to identify fraudulent outgoing ACH entries and monitor entries that are unauthorized or initiate under false pretenses. What does this mean? All ACH originators (anyone initiating ACH transactions) need to develop a process by which information regarding an ACH payment is validated to ensure it is accurate. This would include when the information is originally received and when a change is requested.
- Please make sure you have verbal validations in place with known representatives from businesses you are paying.
- Make sure you have an in-person, manual paper process for your employees.
- Never rely on an email (not even internal email) or phone call from an unknown person to be the only validation for payment information.
- Please make sure you educate yourself and your employees on the importance of verbal/written communication with known sources to validate payment instructions.
- Identify any gaps in your current processes and evaluate security requirements.
- Evaluate compliance software options and integration requirements with your IT and/or Compliance Teams.
- Work with your legal to assess vendor and partner agreements to ensure they are compliant with the new rules as well.
- Establish a regular review process.
Questions? Need assistance? Please reach out to the Treasury Management and Online Banking Department treasurymanagement@FSBLouise.com.
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