Prenotes and notifications of change (NOCs)

Question 1

How long must an Originator wait after sending a prenote?

Answer 1

Six banking days before initiating live entries.

Question 2

Can a prenote be returned?

Answer 2

Yes, if account info is invalid or closed.

Question 3

What happens if a prenote is returned?

Answer 3

The Originator must correct the issue before sending live entries.

Question 4

Do prenotes settle?

Answer 4

No, they do not result in funds movement.

Question 5

Can prenotes be sent for both credits and debits?

Answer 5

Yes, for both types of transactions.

Question 6

What is a Notification of Change (NOC)?

Answer 6

An ACH entry sent by the RDFI to notify the ODFI of incorrect account info.

Question 7

When is an NOC sent?

Answer 7

After a transaction is processed with incorrect but correctable info.

Question 8

What is the standard timeframe for an RDFI to send an NOC?

Answer 8

Within two banking days of settlement.

Question 9

What must the ODFI do upon receiving an NOC?

Answer 9

Notify the Originator and ensure corrections are made within six banking days or before the next entry.

Question 10

Are NOCs mandatory to act on?

Answer 10

Yes, unless the Originator has a valid reason not to.

Question 11

Can an NOC be returned?

Answer 11

No, it is not a return entry.

Question 12

What is the format of an NOC?

Answer 12

It uses a zero-dollar entry with a change code and corrected data.

Question 13

What happens if an Originator ignores an NOC?

Answer 13

It may result in rule violations and potential fines.

Question 14

Can NOCs be sent for both credit and debit entries?

Answer 14

Yes, applicable to both.

Question 15

What is the purpose of a prenote?

Answer 15

To verify account info before sending live entries.

Question 16

Can a prenote trigger an NOC?

Answer 16

Yes, if the RDFI identifies incorrect info.

Question 17

What is the difference between a return and an NOC?

Answer 17

A return rejects the transaction; an NOC allows it but requests correction.

Question 18

What is the Originator’s responsibility after receiving an NOC?

Answer 18

Update records and correct future entries.

Question 19

What is the RDFI’s responsibility regarding prenotes?

Answer 19

Validate account info and issue NOC if needed.

Question 20

What is the ODFI’s role in prenotes and NOCs?

Answer 20

Transmit entries and ensure Originator compliance.

Question 21

How long does an RDFI have to send an NOC after settlement?

Answer 21

2 banking days from the settlement date of the original entry.

Question 22

How long does an ODFI have to notify the Originator of an NOC?

Answer 22

2 banking days from receipt of the NOC.

Question 23

How long does the Originator have to make the requested change?

Answer 23

6 banking days from notification or before the next live entry—whichever is later.

Question 24

What is the timeframe for correcting recurring entries after an NOC?

Answer 24

Before the next scheduled entry or within 6 banking days, whichever is later.

Question 25

What happens if an NOC is received after a prenote?

Answer 25

The Originator must wait 6 banking days after the corrected prenote before sending live entries.

Question 26

How long must an RDFI retain NOC records?

Answer 26

6 years from the date of receipt or transmission.

Question 27

What is the timeframe for an ODFI to respond to a NACHA Rules enforcement request related to NOC noncompliance?

Answer 27

Typically, 10 banking days, but subject to NACHA's enforcement procedures.

Question 28

What is the deadline for an RDFI to correct and resend an NOC if the first was incorrect?

Answer 28

2 banking days from discovering the error.

Question 29

Can a prenote be sent using the IAT SEC code?

Answer 29

No, prenotes are not supported for International ACH Transactions (IAT).

Question 30

Can a prenote be used to test a Third-Party Sender’s processing?

Answer 30

Yes, it’s a common practice to validate routing and account formatting before live transactions.