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PRENOTIFICATION (PRENOTE) – A zero-dollar entry that must be sent through the ACH Network at least six calendar days prior to any live entries affecting an account at a RDFI. The prenote allows the RDFI to validate entry information.

About the Prenotification Process

The prenotification (or prenote) process involves sending zero dollar amounts through the ACH (Automated Clearing House) network as a test before the first actual direct deposit for an employee. This test must be sent at least 6 banking days before any actual pay is sent through the network.

Although employers aren’t required to send the transaction, sending the transaction helps ensure that the employee’s account and bank information is correct. If the information is sent incorrectly, a new prenotification transaction must be sent before direct deposits can begin. New prenotetransactions must also be sent with the 6-day advance notice when the employee’s account or identification number changes or the bank’s routing number changes.

§ 370.21 Are there any requirements related to a prenotification entry?

(a)Use of prenotification in our discretion. In our discretion, we may initiate a prenotification entry to a financial institution prior to sending a debit entry. A prenote  is a zero-dollar ACH entry that can help us determine whether there might be problems with sending a subsequent debit entry.

(b)Requirements placed upon financial institution that receives a prenote. If sent, a financial institution must respond to a prenotification within the time frame for such responses as established by the National Automated Clearing House Association. If the receiving financial institution does not respond to the prenotification message within the specified time period, we may interpret the nonresponsiveness as the financial institution’s agreement to this subpart. Furthermore, a financial institution warrants by its nonresponsiveness that the deposit account number and the type of account contained in the prenotification entry message was accurate as of the moment the financial institution received it.

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