If you use Sage 100 to make payments by ACH, new mandatory compliance regulations take effect in 2026 that may require a software update. Here’s a look at what the new requirements are and how they impact your Sage 100 system.
Nacha Rule Change in 2026
Nacha - the organization that governs, manages, and develops rules for the Automated Clearing House (ACH) network in the U.S. - announced rule changes that will require businesses to strengthen fraud monitoring for their ACH transactions.
Starting in March 2026, businesses that process ACH payments will be required to implement safeguards and monitor for potential fraudulent or scam transactions. The changes will affect any business (regardless of size or transaction volume) that processes electronic payments, from payroll deposits to vendor payments.
Starting in March 2026, businesses that process ACH payments will be required to implement safeguards and monitor for potential fraudulent or scam transactions. The changes will affect any business (regardless of size or transaction volume) that processes electronic payments, from payroll deposits to vendor payments.
Phase 1: Payroll and Purchase Description Requirement
All ACH files for payroll must now use the word PAYROLL in the Company Entry Description field. This applies to employee payroll as well as payments to 1099 contractors.
Similarly, transactions using the WEB SEC code (which applies to ACH payments initiated online via the web) must now use the description PURCHASE.
Both of these requirements begin March 20, 2026 and are addressed in the ACH Maintenance screen as well as Direct Deposit Maintenance screen in a recent Sage 100 update. Refer to this Sage Knowledgebase article online and be sure to contact your local Sage 100 partner if you need assistance.
Similarly, transactions using the WEB SEC code (which applies to ACH payments initiated online via the web) must now use the description PURCHASE.
Both of these requirements begin March 20, 2026 and are addressed in the ACH Maintenance screen as well as Direct Deposit Maintenance screen in a recent Sage 100 update. Refer to this Sage Knowledgebase article online and be sure to contact your local Sage 100 partner if you need assistance.
Phase 2: Fraud Monitoring Requirement
Phase 2 of these new rules, beginning June 19, 2026, requires all ACH originators to implement risk-based processes to identify fraudulent entries before they are transmitted.
In addition to identifying potentially suspicious transactions both big or small (i.e. micro-entries such as those under $1 used to verify account access), this new requirement can also include situations that involve a new account number or changes to an existing account number.
In practical terms, it means that your business may need to evaluate your fraud detection systems and potentially implement enhanced monitoring processes. For larger companies, you may even need to formalize your internal controls so that you can provide documentation of your fraud prevention procedures.
In addition to identifying potentially suspicious transactions both big or small (i.e. micro-entries such as those under $1 used to verify account access), this new requirement can also include situations that involve a new account number or changes to an existing account number.
In practical terms, it means that your business may need to evaluate your fraud detection systems and potentially implement enhanced monitoring processes. For larger companies, you may even need to formalize your internal controls so that you can provide documentation of your fraud prevention procedures.
