ACH Updates
As your ACH bank, we want to keep you informed on the latest rule updates from the National Automated Clearing House Association (NACHA) that impact ACH processing and compliance requirements for all originators.
Important NACHA Compliance Updates
Please see the below two updates that may require action on your end to stay within compliance:
Fraud Monitoring Requirement
Clients will be responsible for establishing, implementing, and maintaining risk-based processes and procedures to prevent ACH entries initiated due to fraud. Coastal States Bank recommends the following at a minimum:
- Verbal verification of all account information being used within ACH entries
- Maintaining up to date computer and email virus protection programs
- Annually review such processes and procedures and make appropriate updates to address evolving risks
Standard Company Entry Descriptions
Clients will now be responsible for adding Company Entry Descriptions for the following ACH entries:
- PAYROLL - For use on ACH entries sending funds out for payment of wages, salaries, and other similar types of compensation.
- PURCHASE - For use on ACH entries pulling funds in for e-commerce purchase of goods.
Below is an example of the location of the Standard Company Entry Descriptions. For a full list of NACHA updates including requirements that will be met by Coastal States Bank, please reference the 2026 Revisions to the NACHA Operating Rules. Additionally, access the 2026 NACHA Operating Rules Online Resource here.
