We’ve updated our ACH payment flows to align with the March 20, 2026 Nacha classification requirements. These require the word “PURCHASE” to be attached to certain ACH transactions when consumers are purchasing goods.
Important:
This does not affect your accounting, bookkeeping or reporting. It’s an internal ACH classification required by Nacha to identify payments for goods. Including “PURCHASE” helps banks apply the correct processing and risk rules.
How Payments Are Classified
Invoices with only products
Classified as Goods (automatically includes the required “PURCHASE” label)
Invoices with only services
Classified as Services (no “PURCHASE” label required)
Mixed invoices (products + services)
Classified as Services (since the transaction is not purely for goods)
Retainers
Classified as Services (treated as a deposit without a clear product-only designation)
What You Need to Do
Nothing — there are no changes required on your end.
You do not need to update anything in Stripe. Our platform automatically sends the correct classification with each ACH payment.
How Invoice Classification Is Determined
The classifications above are based on the entire invoice (all line items combined) — not individual items.
Here’s how each line item contributes:
Tracked Hours → Service
Flat Rate Service → Service
Product → Product
If you add a manual line item:
Selecting “Service” → counts as a Service
Selecting “Product” → counts as a Product
If nothing is selected:
Defaults to Product