This message is for SAGE--On March 20th the banks release a notice stating the NACHA standards have changed and the file description had to say either Payroll or Purchase, see notice below in yellow. 

Message from Frost Bank "Nacha Rule Changes: Act by March 20, 2026"

"New Nacha standards for ACH transactions go into effect on March 20, 2026. These rules require the use of PAYROLL and PURCHASE in Company Entry Descriptions."

If this is not done other banks will reject the payments, the only one I had was Chase Bank. Been changing it since then so that we don't have any issues. 

It appears that Sage has not updated this nor do customers have access to manually change the system. Manually changing the files each time doesn't seem like an efficient way. Hoping they get this fixed quickly, so we don't have to manually change the file. 

HELP

When reading the rule change directly from the NACHA website, I do not believe anyone would need to change their AP Company Entry Description from the standard ELEC PAYMT that Sage uses now. Placing PURCHASE in the Company Entry Description is used for consumer e-commerce purchases for tangible goods. When paying a vendor out of Sage AP by ACH, you are initiating a CREDIT entry to their account. This new "PURCHASE" Company Entry Description is to be used by companies who are initiating a DEBIT entry out of a consumer's bank account for the purchase of goods through a website (e-commerce). The link to the NACHA website that talks about this rule change is: https://www.nacha.org/rules/risk-management-topics-company-entry-descriptions

Can anyone else please review this information on the NACHA website and let me know if you agree with my observation?

Thanks!

Thank you Adam. I received mixed information. I had a payment reject and was informed it was the new rule. But after reading the article we shouldn't have to change the file. So I agree with you on this. 

Adam, I agree with you regarding PURCHASE. My bank had confirmed the same with me regarding the new rule applying to e-commerce purchases. The PAYROLL change does affect my company as we occasionally make payroll payments through AP. 

Adam, I agree with you regarding PURCHASE. My bank had confirmed the same with me regarding the new rule applying to e-commerce purchases. The PAYROLL change does affect my company as we occasionally make payroll payments through AP.