Banner Bank ACH Originator Guide

3. Verify the validity of the routing numbers used. You can meet this requirement by comparing the routing number provided by the Receiver to a database obtained from your ODFI partner or another vendor. You can find more information regarding WEB entries in Subsection 2.5.17 of the Rules and Chapter 50 of the Nacha Operating Guidelines. Company Entry Description The Company Entry Description provides a description of the ACH entry that is displayed on the Receiver’s (i.e., employee or vendor) statement when the payment is posted. The Rules require Originators to include a descriptive statement with each entry to describe the purpose of the payment. For most entries, the Originator can choose its own Company Entry Description for entries it transmits. However, starting in 2026, the Rules will require Originators to utilize two newly defined Company Entry Descriptions: PAYROLL and PURCHASE. The standardization of these descriptions can help parties in the ACH Network identify, monitor, and count the volume of payments for a specific purpose, all of which can help mitigate risk.

Standard Company Entry Description – PAYROLL

This rule establishes a new standard description for PPD Credits for payments of wages, salaries and similar types of compensation. The Company Entry Description field must contain the description PAYROLL. This rule is intended to reduce the incidence of fraud involving payroll redirections.

Standard Company Entry Description – PURCHASE

This rule establishes a new standard description for e-commerce purchases; the Company Entry Description field must contain the description PURCHASE. E-commerce is defined as; “A debit Entry authorized by a consumer Receiver for the online purchase of goods, including recurring purchases first authorized online. An e-commerce purchase uses the WEB debit SEC Code, except as permitted by the rule on Standing Authorizations to use the TEL SEC Code.” Originators must comply with these descriptions by the rule’s effective date; March 20, 2026. This date is a “no later than” date; Originators may begin using the descriptions as soon as practical. Micro-Entries Micro-Entries are a common method used to validate account information for WEB entries. Sometimes known as “penny transactions,” Micro-Entries are small value entries of random amounts transmitted to Receivers’ accounts; Originators can also transmit a debit entry to

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