Dear Valued Customer,

As part of our commitment to keeping our ACH origination customers informed of ACH rule changes, we are providing you the following summary of upcoming changes to the Nacha Operating Rules (“Rules”). The rules below are intended to improve Risk Management in the Network for all parties, and your organization may not be directly affected by some or all of these changes.

1. Company Entry Descriptions

   Effective March 20, 2026

   
   Summary
   The Rules will require specific company entry descriptions for payroll entries and online purchases of goods.

   
   Details
   Originators will be required to use the description “PAYROLL” for PPD credits to pay wages, salaries, and other compensation.

   
   Originator and Third-Party Sender Impact
   Originators will need to review the company entry descriptions they use in ACH files and ensure they update these descriptions as required by the Rules. These standardized descriptions will help improve processes to monitor entries for potential fraud. Originators can begin using this description anytime but must comply with the requirements by the implementation date March 20, 2026.

2. Origination Fraud Monitoring

   Effective June 19, 2026

   
   Summary
   This rule will require all parties on the origination side of entries to have risk-based processes to identify fraudulently originated ACH entries.

   
   Details
   The Rules do not currently require Originators to have fraud monitoring processes. This rule will have requirements for all entries with the goal of detecting and preventing fraud from scams such as business email compromise and fake invoices.

   
   Impact
   Originators may already have processes such as anomaly detection or other “flags” that detect and prevent fraudulent entries. Each organization will need to review its processes and procedures to determine if it needs to make updates to meet these new requirements.

Sincerely,

CalPrivate Bank
Treasury Management
Phone (844) 282-7372