Discover our latest AI-powered innovations around faster payments, smarter workflows, and real-time visibility.Learn more →
A Notification of Change (NOC) is used to notify the sender of an ACH payment to correct or change information related to a customer’s bank account.
How do ACH Notifications of Change work?
NOCs are created by the Receiving Depository Financial Institution (RDFI) when information in an ACH entry is outdated or incorrect. The RDFI sends the NOC to the Originating Depository Financial Institution (ODFI) to notify them of the erroneous account information.
In most cases when you receive an NOC, your ACH transaction should still process as expected. After receiving an NOC, you will need to update your customer records to reflect the change to their account and ensure that future ACH transactions can be processed correctly. Per National Automated Clearing House Association (Nacha) rules, you must make changes to your customer records within 6 days of receiving an NOC.
There are over 50 different NOC codes, some of the most common are listed in the table below:
NOC Code | Description |
---|---|
C01 | Incorrect bank account number |
C02 | Incorrect transit/routing number |
C03 | Incorrect transit/routing number and bank account number |
C04 | Bank account name change |
C05 | Incorrect payment code |
C06 | Incorrect bank account number and transit code |
C07 | Incorrect transit/routing number, bank account number and payment code |
C08 | Corrected foreign routing number |
C09 | Incorrect individual ID number |
C10 | Incorrect company name |
C11 | Incorrect company identification |
C12 | Incorrect company name and company ID |
Try Modern Treasury
See how smooth payment operations can be.
Learn
ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks in the United States.
ACH APIs enable companies with high transaction volumes to write software that automates payments over the ACH network.
An ACH credit refers to the process of electronically depositing, or “pushing,” funds into a bank account using ACH.
In an ACH debit, funds are electronically withdrawn, or “pulled,” from a bank account using ACH.
A Notification of Change (NOC) is used to notify the sender of an ACH payment to correct or change information related to a customer’s bank account.
A return is a credit or debit entry initiated by the Receiving Depository Financial Institution (RDFI) that returns a previously originated payment to the Originating Depository Financial Institution (ODFI).
ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier to spot and resolve payment failures.
An ACH reversal refers to an erroneous ACH payment that a payment originator requests to take back, or reverse.
Credits and debits are two kinds of ACH transactions. Whereas a credit involves depositing, or “pushing,” funds into a bank account, for a debit, funds are withdrawn, or “pulled,” from an account.
FedACH is the automated clearing house (ACH) service of the Federal Reserve Banks.
Part of the FedACH system, FedGlobal ACH offers low-cost and efficient cross-border ACH payments.
The two kinds of financial institutions in the ACH network are ODFIs (Originating Depository Financial Institution) and RDFIs (Receiving Depository Financial Institutions).
A Standard Entry Class or SEC code is a three letter code that describes how a payment was authorized by the consumer or business receiving an ACH transaction.
US companies moving money internationally will likely weigh the pros and cons of SWIFT vs. Global ACH when it comes to attributes like speed and cost.
Payment rails are the underlying systems and networks that facilitate the movement of funds between parties in financial transactions.
ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks and financial institutions in the United States.
An electronic funds transfer (EFT), also known as a direct deposit, is the digital transfer of money between bank accounts. As digital transfers, they reduce the need for manual input and paper documents.
Global ACH can help companies move money from US-domiciled accounts across borders using local rails. Learn how and when to use this payment rail.
A Request for Payment (RFP) is an ACH Network message that can be used by businesses to send electronic invoices to their customers.
Same-Day ACH is an improvement to the ACH network that allows the processing of credit, debit, and return transactions several times a day.
A pre note or prenotification is a zero dollar payment to validate the account and routing details of a bank account before debiting or crediting it.
An International ACH Transfer—also known as Global ACH—is an ACH payment made cross-border from a US-domiciled account.
Subscribe to Journal updates
Discover product features and get primers on the payments industry.