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As a business owner, you face new challenges every day — like figuring out your cash flow, improving your customers’ experiences, and even avoiding fraud. Check out these resources to help you juggle anything that comes your way.

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ACH Prenotes Explained: How to Verify Account Information Before Sending Payments

When Should You Use Prenotes? Prenotes aren’t required in every situation, but they’re a smart step when accuracy matters. Common use cases include: Paying a new vendor by ACH for the first time Setting up direct deposit for a new employee Updating banking details for an existing vendor or employee Switching from checks to ACH payments Sending high‑volume or high‑dollar ACH payments If incorrect account information would cause delays, fees, or operational issues, prenotes are worth the extra step. How Prenotes Work (Step‑by‑Step) Enter the recipient’s bank account and routing number in your ACH system Send a prenote instead of a live payment The prenote is sent with a $0 amount The receiving bank reviews the account details Wait at least three business days If no return is received, you can begin sending live ACH payments If a problem is found, the prenote will be returned so you can correct the information before any money is involved. Key Rules to Know Prenotes are optional — they are not required by Nacha rules No money moves; prenotes are always sent for $0 You must wait at least three business days before sending live payments If a prenote is returned, the account information must be corrected before retrying Prenotes don’t last forever — if account details change or too much time passes, a new prenote should be sent Your bank may have additional ACH requirements, so it’s important to follow your institution’s guidelines. Why Prenotes Matter Skipping prenotes can seem faster, but it increases risk for your business. Fraud prevention: Prenotes help catch invalid or suspicious account details early Fewer returns: Incorrect payments can lead to ACH returns, fees, and added scrutiny Operational efficiency: Fixing errors before payments go live avoids delays, rework, and frustration Prenotes help protect your business from payment errors that cost time, money, and trust.

2 min read
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When Does an ACH Payment Need to Say “PAYROLL”?

What is the Nacha PAYROLL rule? Nacha imposed this new rule in March 2026 to increase fraud prevention and decrease payment confusion. The word “PAYROLL” is now required in the Company Entry Description only when all of the following are true: The ACH entry uses the PPD SEC code The payment represents wages, salaries, or similar compensation The payment is made to an individual (an employee or consumer) If any one of those things is not true, the “PAYROLL” requirement does not apply. What is the Company Entry Description? The Company Entry Description is a short line of text included in an ACH transaction. It helps the person or business receiving the payment understand what the deposit is for when it shows up on their bank statement. Common examples include: PAYROLL RENT VENDORPAY REIMBURSE Nacha sets rules around this field to promote transparency and reduce fraud. One of those rules now requires a specific description — “PAYROLL” — in a very specific scenario. What is an SEC code? An SEC code (short for Standard Entry Class) is a three‑letter code used in the ACH network to describe what kind of payment is being made and who is being paid. Think of the SEC code as the label that tells banks and payment systems how to process the transaction. It identifies whether a payment is going to an individual or a business — and that distinction matters for compliance. Two of the most common SEC codes are: PPD — used for ACH payments to individuals, such as employee payroll CCD — used for business‑to‑business ACH payments, like vendor or service payments Nacha rules, including Company Entry Description requirements, are often tied to the SEC code. That’s why using the correct SEC code is just as important as the payment description itself. Why SEC codes matter: PPD vs. CCD A lot of the confusion comes from mixing up two common ACH SEC codes. The key question to ask is simple: Who is being paid — an individual or a business? PPD (Prearranged Payment and Deposit) Used for payments to individuals Common for employee payroll and other consumer credits This is the only SEC code where the “PAYROLL” description requirement applies CCD (Corporate Credit or Debit) Used for business-to-business payments Common for vendor payments, service fees, and reimbursements paid to a business entity The “PAYROLL” description requirement does not apply Who is responsible for getting it right? Under Nacha rules, the compliance obligation follows the originator of the PPD credit — the business that is paying the individual. That’s why it’s important to: Use the correct SEC code Apply the “PAYROLL” description only when required Avoid over-labeling business-to-business payments Using the wrong description can create confusion for recipients and raise unnecessary questions during reviews. The bottom line: Not every ACH credit needs to say “PAYROLL.” That requirement applies only to PPD credits paying wages or similar compensation to an individual. Business-to-business ACH payments using CCD entries are not subject to this rule. When you understand the “why” behind the rule, compliance becomes a lot less stressful. And if you’re ever unsure which SEC code or description is right for your ACH payments, your First Bank treasury management team is here to help — with clear answers, not guesswork.   Test your knowledge Select an option Paying employees their wages Paying a payroll service provider or staffing firm Paying a contractor or broker that operates as an LLC or corporation “PAYROLL” is required SEC code: PPD Receiver: Individual employee “PAYROLL” is not required SEC code: CCD Receiver: Business entity “PAYROLL” is not required SEC code: CCDReceiver: Business entity Use the dropdown to see common examples of when PAYROLL is required and not required in the Company Entry Description

4 min read

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How to streamline and automate your business

Your tools have to grow with you It’s payroll day again. Miguel stares at the screen, hesitating to approve the final batch of payments. Everything looks right — it usually is — but with two new offices for his construction services company opening soon, crews in the field, a network of suppliers, and dozens of large transactions happening every day, he can’t afford to make any mistakes. This moment might look familiar. Going from a new small business to an established one is like going from a one-lane road to a four-lane highway: More traffic, happening faster. How is one person supposed to keep up? The truth is: Manual oversight doesn’t scale Miguel’s dilemma isn’t an uncommon one. Owners of established businesses often find themselves losing hours of valuable time by doing everything themselves. That approach made perfect sense when there were 15 transactions a day — it’s harder with 150. That’s why owners like Miguel need to stop investing more of their own time and start investing in a toolbox that helps streamline, automate, and protect what they’ve built. Even successful businesses often struggle with: High transaction volumes across multiple accounts Manual payment approvals eating time or causing delays Increased exposure to fraud and unauthorized transactions A lack of visibility into real-time cashflow Don’t waste your most valuable resource If you own an established business and you’re still spending time on payroll runs, ACH batches, wire transfers, vendor payments, and deposits, then you’re wasting your most valuable resource. Your time. Luckily, there’s a simple solution: Treasury Services. Treasury Services aren’t a single product. They’re a full suite of business tools specifically designed to help established businesses operate smoothly and safely. Not only do you get your time back — time you could spend on family, strategy, or simply snoozing your 5 a.m. alarm — but you actually reduce the risk of costly errors. What are Treasury Services? Remote Deposit Capture For businesses handling high volumes of checks, this tool lets you make deposits quickly and easily — without making daily trips to your local bank. Electronic payments Send and receive funds electronically to keep business flowing smoothly and reduce your reliance on slower, manual methods. Corporate banking services Unlock the full power of digital banking with tools to assign permissions, grant approval rights, provide control to select employees, and schedule specialized reports in advance. Credit card processing Streamline and simplify card payments with customizable reporting, automatic batching, virtual terminals, mobile processing, and more. Positive Pay Add custom safeguards to your transactions, keeping trustworthy payments flowing while guarding against unauthorized activity. Lockbox services Make it easier to receive payments by mail and turn your accounts receivable into usable cash quickly, cutting labor costs and improving efficiency. Start building better systems today When treasury services are done right, the impact is immediate. Fewer bottlenecks, clarity on cashflow, and less time spent chasing paperwork. If your business has gotten more and more complex over time, but your tools haven’t kept up, it may be time to think about sitting down with a local banker to discuss your options — because we believe that great solutions start with conversations, not applications.

3 min read

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How to finance rapid business growth

Making things grow, one decision at a time Mary stands between two deliver trucks, unsure what to do next. Another large order just came in, which is good news — until she looks at the calendar. Both trucks are already booked. Her team is stretched thin. And the equipment she needs to keep up? It’s going to cost more than what she has available as liquid assets to reinvest. As a business owner, you have to be ready when opportunity knocks. Times like this are when a business loan or revolving line of credit can help you take the next big step. New opportunities don’t wait around Every growing business eventually hits a point where opportunity exceeds cashflow. But that doesn’t mean you have to slow down — it just means you need to be ready. Rapidly growing businesses might have to deal with: High upfront costs for new equipment, employees, or inventory Rising vendor costs in anticipation of higher customer demand More opportunities in the pipeline than capacity allows Managing that kind of growth can feel like trying to pace yourself for a marathon when every day is a sprint. You worry that you won’t be able to keep up, but you also have to be careful about overcommitting resources. You want to keep growing, but you’re afraid of taking on debt Debt is uncomfortable. There’s always a certain degree of uncertainty — what if the new deals don’t come through, or the economy slows down, or the market shifts? Hesitation is healthy, but it’s important to realize that debt isn’t automatically bad. The structure of debt matters just as much as the amount, because not all types of financing are right for all types of business. Frequent, small, short-term cashflow gaps may be better served by a business credit card. Larger, intermittent gaps can be solved with a revolving line of credit. A major one-time expense may demand a business loan. The key isn’t to borrow more or less. It’s to borrow smart. Know the nuances of different types of business loans We firmly believe that business banking isn’t about filling an order — it’s about collaborating with business owners to provide the best possible service. That’s why we offer a range of financing products to fit the way businesses actually operate. Business loans When you need capital for a specific purpose, like new equipment, a traditional business loan lets you take out a defined lump-sum amount with structured repayment terms. Best for planned expenses that you’ll pay off over the long term. Lines of credit When you have ongoing working capital needs, a line of credit offers flexibility. You can draw from it whenever you need, only pay interest on what you use, and access new funds as soon as you repay whatever you took out. Best used as a buffer for managing cashflow gaps. SBA loans In some cases, government-backed SBA loans can offer more flexible terms than traditional loan structures. The right option will always depend on your business, your goals, and your tolerance for risk. A local banker can help you decide whether SBA loans are a good fit for your business. Commercial real estate loans A commercial mortgage helps you find the perfect place — whether it’s an office, a retail park, a warehouse, or something else. Use a loan like this to build your investment portfolio or help your business scale. Think your business would benefit from smart financing? Debt doesn’t have to be an albatross around your neck. It can help you say “yes” to new opportunities without hesitation and make investments that support your business in the long term. That’s why we believe that smart financing starts with a conversation — not an application. Talk to a local banker today to learn how we can help your business grow.

4 min read

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Articles

Many business owners have been in your shoes before. Read about what they’ve learned and get tips from our experts.

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Image for tile. ACH Prenotes Explained: How to Verify Account Information Before Sending Payments When Should You Use Prenotes? Prenotes aren’t required in every situation, but they’re a smart step when accuracy matters. Common use cases include: Paying a new vendor by ACH for the first time Setting up direct deposit for a new employee Updating banking details for an existing vendor or employee Switching from checks to ACH payments Sending high‑volume or high‑dollar ACH payments If incorrect account information would cause delays, fees, or operational issues, prenotes are worth the extra step. How Prenotes Work (Step‑by‑Step) Enter the recipient’s bank account and routing number in your ACH system Send a prenote instead of a live payment The prenote is sent with a $0 amount The receiving bank reviews the account details Wait at least three business days If no return is received, you can begin sending live ACH payments If a problem is found, the prenote will be returned so you can correct the information before any money is involved. Key Rules to Know Prenotes are optional — they are not required by Nacha rules No money moves; prenotes are always sent for $0 You must wait at least three business days before sending live payments If a prenote is returned, the account information must be corrected before retrying Prenotes don’t last forever — if account details change or too much time passes, a new prenote should be sent Your bank may have additional ACH requirements, so it’s important to follow your institution’s guidelines. Why Prenotes Matter Skipping prenotes can seem faster, but it increases risk for your business. Fraud prevention: Prenotes help catch invalid or suspicious account details early Fewer returns: Incorrect payments can lead to ACH returns, fees, and added scrutiny Operational efficiency: Fixing errors before payments go live avoids delays, rework, and frustration Prenotes help protect your business from payment errors that cost time, money, and trust. 2 min read
Image for tile. When Does an ACH Payment Need to Say “PAYROLL”? What is the Nacha PAYROLL rule? Nacha imposed this new rule in March 2026 to increase fraud prevention and decrease payment confusion. The word “PAYROLL” is now required in the Company Entry Description only when all of the following are true: The ACH entry uses the PPD SEC code The payment represents wages, salaries, or similar compensation The payment is made to an individual (an employee or consumer) If any one of those things is not true, the “PAYROLL” requirement does not apply. What is the Company Entry Description? The Company Entry Description is a short line of text included in an ACH transaction. It helps the person or business receiving the payment understand what the deposit is for when it shows up on their bank statement. Common examples include: PAYROLL RENT VENDORPAY REIMBURSE Nacha sets rules around this field to promote transparency and reduce fraud. One of those rules now requires a specific description — “PAYROLL” — in a very specific scenario. What is an SEC code? An SEC code (short for Standard Entry Class) is a three‑letter code used in the ACH network to describe what kind of payment is being made and who is being paid. Think of the SEC code as the label that tells banks and payment systems how to process the transaction. It identifies whether a payment is going to an individual or a business — and that distinction matters for compliance. Two of the most common SEC codes are: PPD — used for ACH payments to individuals, such as employee payroll CCD — used for business‑to‑business ACH payments, like vendor or service payments Nacha rules, including Company Entry Description requirements, are often tied to the SEC code. That’s why using the correct SEC code is just as important as the payment description itself. Why SEC codes matter: PPD vs. CCD A lot of the confusion comes from mixing up two common ACH SEC codes. The key question to ask is simple: Who is being paid — an individual or a business? PPD (Prearranged Payment and Deposit) Used for payments to individuals Common for employee payroll and other consumer credits This is the only SEC code where the “PAYROLL” description requirement applies CCD (Corporate Credit or Debit) Used for business-to-business payments Common for vendor payments, service fees, and reimbursements paid to a business entity The “PAYROLL” description requirement does not apply Who is responsible for getting it right? Under Nacha rules, the compliance obligation follows the originator of the PPD credit — the business that is paying the individual. That’s why it’s important to: Use the correct SEC code Apply the “PAYROLL” description only when required Avoid over-labeling business-to-business payments Using the wrong description can create confusion for recipients and raise unnecessary questions during reviews. The bottom line: Not every ACH credit needs to say “PAYROLL.” That requirement applies only to PPD credits paying wages or similar compensation to an individual. Business-to-business ACH payments using CCD entries are not subject to this rule. When you understand the “why” behind the rule, compliance becomes a lot less stressful. And if you’re ever unsure which SEC code or description is right for your ACH payments, your First Bank treasury management team is here to help — with clear answers, not guesswork.   Test your knowledge Select an option Paying employees their wages Paying a payroll service provider or staffing firm Paying a contractor or broker that operates as an LLC or corporation “PAYROLL” is required SEC code: PPD Receiver: Individual employee “PAYROLL” is not required SEC code: CCD Receiver: Business entity “PAYROLL” is not required SEC code: CCDReceiver: Business entity Use the dropdown to see common examples of when PAYROLL is required and not required in the Company Entry Description 4 min read
Image for tile. How to streamline and automate your business Your tools have to grow with you It’s payroll day again. Miguel stares at the screen, hesitating to approve the final batch of payments. Everything looks right — it usually is — but with two new offices for his construction services company opening soon, crews in the field, a network of suppliers, and dozens of large transactions happening every day, he can’t afford to make any mistakes. This moment might look familiar. Going from a new small business to an established one is like going from a one-lane road to a four-lane highway: More traffic, happening faster. How is one person supposed to keep up? The truth is: Manual oversight doesn’t scale Miguel’s dilemma isn’t an uncommon one. Owners of established businesses often find themselves losing hours of valuable time by doing everything themselves. That approach made perfect sense when there were 15 transactions a day — it’s harder with 150. That’s why owners like Miguel need to stop investing more of their own time and start investing in a toolbox that helps streamline, automate, and protect what they’ve built. Even successful businesses often struggle with: High transaction volumes across multiple accounts Manual payment approvals eating time or causing delays Increased exposure to fraud and unauthorized transactions A lack of visibility into real-time cashflow Don’t waste your most valuable resource If you own an established business and you’re still spending time on payroll runs, ACH batches, wire transfers, vendor payments, and deposits, then you’re wasting your most valuable resource. Your time. Luckily, there’s a simple solution: Treasury Services. Treasury Services aren’t a single product. They’re a full suite of business tools specifically designed to help established businesses operate smoothly and safely. Not only do you get your time back — time you could spend on family, strategy, or simply snoozing your 5 a.m. alarm — but you actually reduce the risk of costly errors. What are Treasury Services? Remote Deposit Capture For businesses handling high volumes of checks, this tool lets you make deposits quickly and easily — without making daily trips to your local bank. Electronic payments Send and receive funds electronically to keep business flowing smoothly and reduce your reliance on slower, manual methods. Corporate banking services Unlock the full power of digital banking with tools to assign permissions, grant approval rights, provide control to select employees, and schedule specialized reports in advance. Credit card processing Streamline and simplify card payments with customizable reporting, automatic batching, virtual terminals, mobile processing, and more. Positive Pay Add custom safeguards to your transactions, keeping trustworthy payments flowing while guarding against unauthorized activity. Lockbox services Make it easier to receive payments by mail and turn your accounts receivable into usable cash quickly, cutting labor costs and improving efficiency. Start building better systems today When treasury services are done right, the impact is immediate. Fewer bottlenecks, clarity on cashflow, and less time spent chasing paperwork. If your business has gotten more and more complex over time, but your tools haven’t kept up, it may be time to think about sitting down with a local banker to discuss your options — because we believe that great solutions start with conversations, not applications. 3 min read
Image for tile. How to finance rapid business growth Making things grow, one decision at a time Mary stands between two deliver trucks, unsure what to do next. Another large order just came in, which is good news — until she looks at the calendar. Both trucks are already booked. Her team is stretched thin. And the equipment she needs to keep up? It’s going to cost more than what she has available as liquid assets to reinvest. As a business owner, you have to be ready when opportunity knocks. Times like this are when a business loan or revolving line of credit can help you take the next big step. New opportunities don’t wait around Every growing business eventually hits a point where opportunity exceeds cashflow. But that doesn’t mean you have to slow down — it just means you need to be ready. Rapidly growing businesses might have to deal with: High upfront costs for new equipment, employees, or inventory Rising vendor costs in anticipation of higher customer demand More opportunities in the pipeline than capacity allows Managing that kind of growth can feel like trying to pace yourself for a marathon when every day is a sprint. You worry that you won’t be able to keep up, but you also have to be careful about overcommitting resources. You want to keep growing, but you’re afraid of taking on debt Debt is uncomfortable. There’s always a certain degree of uncertainty — what if the new deals don’t come through, or the economy slows down, or the market shifts? Hesitation is healthy, but it’s important to realize that debt isn’t automatically bad. The structure of debt matters just as much as the amount, because not all types of financing are right for all types of business. Frequent, small, short-term cashflow gaps may be better served by a business credit card. Larger, intermittent gaps can be solved with a revolving line of credit. A major one-time expense may demand a business loan. The key isn’t to borrow more or less. It’s to borrow smart. Know the nuances of different types of business loans We firmly believe that business banking isn’t about filling an order — it’s about collaborating with business owners to provide the best possible service. That’s why we offer a range of financing products to fit the way businesses actually operate. Business loans When you need capital for a specific purpose, like new equipment, a traditional business loan lets you take out a defined lump-sum amount with structured repayment terms. Best for planned expenses that you’ll pay off over the long term. Lines of credit When you have ongoing working capital needs, a line of credit offers flexibility. You can draw from it whenever you need, only pay interest on what you use, and access new funds as soon as you repay whatever you took out. Best used as a buffer for managing cashflow gaps. SBA loans In some cases, government-backed SBA loans can offer more flexible terms than traditional loan structures. The right option will always depend on your business, your goals, and your tolerance for risk. A local banker can help you decide whether SBA loans are a good fit for your business. Commercial real estate loans A commercial mortgage helps you find the perfect place — whether it’s an office, a retail park, a warehouse, or something else. Use a loan like this to build your investment portfolio or help your business scale. Think your business would benefit from smart financing? Debt doesn’t have to be an albatross around your neck. It can help you say “yes” to new opportunities without hesitation and make investments that support your business in the long term. That’s why we believe that smart financing starts with a conversation — not an application. Talk to a local banker today to learn how we can help your business grow. 4 min read
Image for tile. Why small businesses need powerful tools Sally’s problem (and her simple solution) It’s 9:12 a.m. Sally refreshes her email while an impatient client waits on the phone. She’s sure she sent the invoice yesterday. It should be there, waiting in their inbox — but it’s not. After months of hard work, her CPA practice is starting to grow… but the tools she’s been using to run her business haven’t kept up. She’s constantly juggling online payment apps, hard-to-track invoices, questions from her two assistants, and phone calls with clients. It’s exhausting. If any of that sounds familiar, don’t worry. The solution may be as simple as choosing a better business checking account. The hard stage that no one talks about Every business reaches a point where things start to shift. You’re not trying to make it work anymore — it actually is working! — but your systems and tools still look the same as they did when you were just starting out. Your business might look something like this: The business is real and starting to grow Revenue is steady and plans for the future are forming Business tools feel scattered, disorganized, or difficult to use You end up feeling like you’re plugging more and more outlets into a power bank, and suddenly there’s no more room — now, when you try to add another piece, something else stops working. The good news: Growing pains are normal for small businesses Most business owners face early headwinds once real growth starts to kick in. There’s nothing wrong with the product or the strategy — they’ve simply outgrown their infrastructure. This is when relying on free or fragmented tools starts to be a huge pain point. Clear transaction records and useful reporting emerge as obvious business needs. Process problems multiply until they start to impact clients and customers. With high demand and insufficient tools, it’s hard to manage the day-to-day essentials — let alone find the time to troubleshoot solutions. But the fix may be as simple as taking a hard look at your business bank account. What should a business checking account actually do? Too many small business owners think that the bank is only there to hold their money. The truth is that a great business checking account can act as the central hub of your entire operation — like a financial breaker panel that keeps everything running smoothly. The right account can help you: Separate your personal and business finances Easily track all of your transactions Simplify payroll, vendor payments, and more At First Bank, we understand that even small businesses have a lot of moving parts. That’s why we created Business Elite Checking. Business Elite helps you move beyond the basics Designed for small and mid-sized businesses that want to streamline and simplify, Business Elite Checking helps business owners cross common pain points off their to-do list. Besides being packed full of perks, it’s also easy to eliminate the monthly maintenance fee by enrolling in useful services like credit card processing or by taking out a business credit card. Get a clear picture of your finances Mixing your personal and business expenses is a headache waiting to happen. Clean separation makes bookkeeping, tax prep, and financial reporting easier. Enjoy more room to grow Business Elite offers 500 free transactions per month and up to $25,000 in cash deposits at no additional charge — because every growing business needs space to operate. Protect your business from fraud As your business scales, so does exposure to fraud. That’s why Business Elite Checking includes identity protection services, data breach support, and sophisticated monitoring tools. Do everything, all in one place The right account makes it easy to manage merchant services, payroll direct deposit, business lines of credit, and more — without having to juggle multiple platforms. Get perks like 24/7 telehealth Access to 24/7 video or phone visits with licensed doctors, providing convenient healthcare for you and your family. All with zero copays. Start building a solid foundation now If your business is moving forward but your tools aren’t keeping up, now is the perfect time to talk to a local business banker about what comes next. You’ve already done the hard work of building something new — together, we can make it even better. 4 min read
Image for tile. What Is Nacha? Understanding the ACH Network and Its Rules A simple way to think about Nacha: the traffic authority for ACH payments The ACH Network is the highway system that payments travel on. Banks, businesses, and payment processors are the drivers. Nacha writes the rules of the road so payments move safely and predictably. This includes defining standards, setting expectations, and establishing consequences when rules are not followed. Without shared rules, payments could be delayed, misdirected, or abused. Nacha’s role is to ensure everyone follows the same standards so payments reach the right place at the right time. Why Nacha Rules Matter Nacha rules help ensure ACH payments are authorized, properly identified, and monitored for unusual or fraudulent activity. These standards allow the ACH Network to operate at scale while remaining reliable and secure. Nacha regularly updates its rules to address emerging risks, strengthen fraud prevention, and reflect changes in how electronic payments are used. What Happens If Nacha Rules Aren’t Followed? Failing to follow Nacha rules can lead to operational and financial consequences. Depending on the issue, this may include payment delays, rejected transactions, increased scrutiny from your bank, or formal warnings and fines through Nacha’s compliance process. In serious or repeated cases, businesses may lose access to ACH services altogether. Nacha maintains a formal compliance and enforcement process to help protect the safety and reliability of the ACH Network. Why This Matters for Your Business If your business sends or receives ACH payments, Nacha rules apply to you, even if you never interact with Nacha directly. Understanding Nacha’s role helps explain why certain requirements exist and why rule changes, such as updates to payroll transaction descriptions, are introduced. Staying informed about Nacha rules can help businesses avoid disruptions and keep payments running smoothly. 2 min read
Image for tile. ACH Payroll Rule Changes Effective March 20, 2026 At a Glance: Frequently Asked Questions What is changing with ACH payroll in 2026? Starting March 20, 2026, ACH transactions used to pay wages, salaries, or other similar types of compensation must include “PAYROLL” in the Company Entry Description field. This applies regardless of the worker’s status (covering both W-2 employees and 1099 contract employees. Additionally, pre-tax deductions such as contributions to a Health Savings Account (HSA) are also required to use the “PAYROLL” descriptor. What is Nacha? Nacha is the organization responsible for setting and enforcing the rules that govern the ACH Network in the United States. Read this article to learn more about Nacha Who needs to take action? Businesses that use ACH transfer services to pay employees (both W2 and 1099) wages, salaries or other forms of compensation (including pre-tax deductions like HSA contributions) will need to ensure they are entering “PAYROLL” in the Company Entry Description field. If you upload a file to process your ACH payroll transactions, you will need to ensure that your file upload meets this new “PAYROLL” requirement. Do First Bank customers need to do anything? Many First Bank customers do not. Payroll transactions processed through Payroll Templates will be updated automatically to comply with this new rule change. If you prepare a file outside of First Bank online banking and upload it into our system, you’ll need to update your file so that the Company Entry Description field is “PAYROLL”. What happens if payroll files are not updated? After March 20, 2026, payroll files that do not meet the new requirement may result in returned payroll items, and originators may receive a Notice of Change. Understanding the New ACH Payroll Rule Taking Effect March 20, 2026 If your business uses ACH to pay employees, an important rule change is approaching that may affect how payroll transactions are processed. Beginning March 20, 2026, updated Nacha requirements will apply to payroll-related ACH transactions. These changes are intended to help reduce payroll fraud and prevent misdirected payments across the ACH network. This article explains what is changing, how it may apply to First Bank customers, and what steps payroll originators should take to prepare. What Is Changing? Starting March 20, 2026, ACH transactions used to pay wages, salaries, or similar compensation must include “PAYROLL” in the Company Entry Description field. This requirement applies specifically to payroll transactions and does not affect ACH payments for vendors, consumer payments, or other non-payroll activity. Nacha, the organization that governs the ACH network, introduced this change to make payroll entries easier to identify and monitor. This strengthens risk controls and helps financial institutions detect potential fraud more effectively. How This Affects First Bank Customers The impact of this change depends on how payroll ACH transactions are originated. Customers Using First Bank’s Payroll Solutions: If you use First Bank’s Payroll option within online banking, a template, or file upload, no action is required. First Bank will automatically apply the updated Company Entry Description to payroll transactions processed through these tools. Customers Using ACH Pass-Thru: Because ACH Pass-Thru files are generated externally, they will not be automatically updated to meet the new requirement. If this applies to you, contact your payroll provider to confirm that payroll files will include “PAYROLL” in the Company Entry Description field before March 20, 2026. Payroll files that do not meet the new standard may result in returned payroll items.. Unsure How Your Payroll Is Processed? If you are not certain which method you use to originate payroll ACH transactions, Business Support can help confirm your setup and explain how the change applies to your business. Why This Matters for ACH Originators Businesses that originate ACH transactions are responsible for ensuring those transactions are accurate, authorized, and compliant with Nacha rules. Staying informed about rule changes like this one can help reduce the risk of payment disruptions, avoid delays in employee payroll, and support overall ACH compliance. Share This Information with Your Team If payroll is managed by someone else within your organization, such as a payroll processor, accountant, or third-party provider, be sure to share this information so any necessary updates can be made before the March 20 deadline. Need Help? First Bank’s Business Support team is available to answer questions and assist with understanding how this change applies to your account. Phone: 1-866-435-7208 Hours: Monday through Friday, 8:30 a.m. to 5:30 p.m. 4 min read
Serious millennial man using laptop sitting at the table in a home office, focused guy in casual clothing looking at the paper, communicating online, writing emails, distantly working or studying on computer at home. How to protect your business from email fraud Email fraud is a growing problem Email fraud is one of the most costly cyber threats facing companies today. Fraudsters are getting better at impersonating trusted people — like CEOs, vendors, and longtime employees — to trick businesses into making fraudulent payments or sharing sensitive security information. But here’s the good news: Business email compromise is preventable. Fraudsters often depend on human error, not on high-tech hacking, so adding a few smart safeguards can help your business stop scams before it’s too late. What is Business Email Compromise (BEC)? BEC is a type of fraud where criminals use email to pose as someone you trust. Instead of relying on malware, these attacks use social engineering. They put pressure on employees, exploit trust, or create a false sense of urgency to drive action. These are just a few common forms of email fraud: Real email accounts are taken over using stolen passwords Spoofed domains make fake emails look almost identical to real ones Executives or vendors are impersonated convincingly enough to trick employees Compromised vendor accounts send realistic payment requests Whether the email asks for a wire transfer, a payroll change, or confidential information, the goal is the same: Move fast enough to slip through safeguards. Need help fending off fraud? Snag our Fraud Spotter Checklist to help you spot a scam before it strikes, then read on for more tips on preventing email fraud! Download now Here’s what your business should watch out for Fraudsters tend to follow familiar patterns. Knowing what to look for helps your team spot trouble before it spreads. These scams work when security steps are skipped or when employees don’t pause to verify a request. Slowing down and double-checking before acting is often enough to stop them. 1. Invoice fraud You receive an “invoice” that looks legitimate. It may even be timed to match your usual billing cycles. But the payment details have been quietly altered. 2. Vendor or supplier compromise Attackers access or mimic a vendor’s email account and send updated payment instructions, redirecting funds to a fraudulent bank account. 3. Executive impersonation A senior leader sends out an email with an “urgent request” to send a wire transfer. The message might emphasize confidentiality or time constraints to make employees act fast. 4. Payroll diversion An employee “updates” their direct deposit information. Without verification, the next paycheck goes straight to a fraudulent account. 5. Gift card scams A request from a “company leader” comes through, asking for bulk gift card purchases to surprise the team with a well-earned reward. The gift cards are delivered to a fraud-friendly address. What can you do to stop email fraud? A strong defense doesn’t require complicated tools. All you need is a clear process and good guardrails. 1. Train your team regularly Training doesn’t need to be complex — short refreshers each quarter go a long way. Employees should feel confident recognizing red flags like: Pressure or urgency in unexpected requests Slight changes to company email addresses Breaking normal or established processes Instructions to keep transactions confidential 2. Turn on Multi-Factor Authentication (MFA) This is one of the simplest and highest-impact steps you can take. Most account takeovers start with stolen passwords, but adding a secondary form of authentication (like a code sent via text or email) dramatically reduces your company’s risk of third-party logins. 3. Verify all financial requests through a trusted channel Before sending money or changing payment details, require a second confirmation via phone or in-person conversation. Never reply to the email directly if you suspect a scam. 4. Strengthen your email security Small steps add up to big impacts. Basic security protocols are often overlooked, even at large organizations. Here’s what you can do to help prevent email fraud: Require strong, unique passwords Implement routine password updates Add anti-phishing security tools 5. Use email authentication protocols (DMARC, SPF, DKIM) These settings help you identify impersonated emails and prevent spoofing by verifying unique digital signatures. You can think of it like having your system check the sender’s ID at the door. Your IT team or service provider can implement them quickly and easily. 6. Limit access to sensitive systems Give employees access only to software that’s essential for their role. Having fewer access points reduces your company’s risk of a data breach. 7. Create a simple response plan A quick response can minimize or prevent the damage caused by an attempted attack. Your team should know: How to report suspicious messages Authenticate a request that may not be legitimate What to do in the event of a suspected breach Start building a culture of prevention Business Email Compromise is a serious threat, but it’s also one you can prepare for. When your organization combines smart training, clear procedures, and common-sense protections, you create a reliable defense against email fraud. For questions about fraud prevention, reach out to our team. We’re always here to help you put safety and soundness first. 5 min read

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