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What Is ACH Discretionary Data?

  • Ian Berryman
  • Aug 9
  • 1 min read

In the ACH file format, Company Discretionary Data is a 20 character long, optional field within the Batch Header Record. It’s used by the originator (business sending the payment) or the ODFI (Originating Depository Financial Institution) to include additional information that is only significant to them.


This field is almost always blank unless your bank requires a specific code or value to be entered. One notable example is Chase Bank which requires it's originators to enter their account number with leading 0s to make it 20 digits long (e.g. 00000000000000123456).


Where Discretionary Data Appears in the NACHA (ACH) File

  • Record Type: Batch Header (line starting with 5)

  • Position: 21–40

  • Length: 20 characters

  • Purpose: Free-form, bank- or originator-defined

Company Discretionary Data highlighted in a bank NACHA file

How To Change Discretionary Data In ACH Pro

ACH Pro allows you to add Company Discretionary Data when creating bank NACHA files

The Company Discretionary Data field in ACH Pro's NACHA file builder


Final Thoughts

The bottom line is that Company Discretionary Data is a field that you can ignore unless your bank requires it.


If you're looking for a tool to help you create bank NACHA files without the hassle of manual entry, try ACH Pro for free.


 
 
 
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