What Is a NACHA File?
A NACHA file is a standardized text file that tells your bank which accounts to debit, how much to pull, and where to deposit the funds. It is the same format used for payroll direct deposits, insurance premium collections, and any other ACH transaction processed through the banking system.
If you want to collect rent via ACH without paying per-transaction fees to a property management platform, you need to create one of these files and send it to your bank.
The Structure of a NACHA File
Every NACHA file follows a strict fixed-width format — 94 characters per line, no exceptions. The file contains five record types:
- File Header (Record Type 1) — Identifies who is sending the file, your bank, and the creation date
- Batch Header (Record Type 5) — Groups related transactions (e.g., all rent collections for one property)
- Entry Detail (Record Type 6) — One line per tenant: their bank routing number, account number, name, and the amount to debit
- Batch Control (Record Type 8) — Totals and hash values for the batch
- File Control (Record Type 9) — Totals for the entire file
Every field has a specific position, length, and format. A routing number goes in columns 4-12. An amount goes in columns 30-39, right-justified with leading zeros and no decimal point. Get any of it wrong and your bank rejects the whole file.
Step-by-Step: Building Your Rent Collection File
Step 1: Gather Your Information
Before you create the file, you need:
- Your bank's routing number and account number — where collected funds will be deposited
- Your company identification number — usually your EIN, assigned by your bank during ACH origination setup
- Tenant bank details — each tenant's routing number, account number, and the amount to collect
- Signed ACH authorization forms — legal requirement before debiting any tenant's account
Step 2: Set the Effective Date
The effective date tells the bank when to process the debits. Most banks require at least one business day of lead time. If you want rent collected on the first of the month, submit your file at least one business day before.
Step 3: Create the File
This is where most property managers hit a wall. You have three options:
- Write it manually — technically possible, but one misaligned column means rejection
- Use a spreadsheet template — fragile and error-prone, especially with entry hashes and batch controls
- Use a NACHA file creation tool — validates every field and generates a file your bank will accept
Step 4: Validate Before Sending
Before you transmit anything, validate the file. Check that:
- Routing numbers pass the checksum algorithm
- Batch totals match the sum of individual entries
- The entry hash is calculated correctly
- All required fields are present and properly formatted
A single validation error means your bank sends back the entire file.
Step 5: Transmit to Your Bank
Most banks accept NACHA files through one of two channels:
- Bank portal upload — log into your bank's treasury management portal and upload the file manually
- SFTP transmission — send the file over a secure connection directly from your computer or tool
SFTP is faster and easier to automate, especially if you collect rent on the same schedule every month.
Skip the Manual Work
FiSTWorks handles all of this for you. Add your tenants once, select them when building a file, and FiSTWorks generates a validated NACHA file ready for your bank. Transmit via SFTP or download and upload manually — your choice.
No NACHA expertise required. No per-transaction fees.