Direct Deposit Processing Prenotification (Prenote) PeriodWhen direct deposit instructions are first set up, a prenotification (prenote) test is sent through the direct deposit network to verify the accuracy of the information (routing number, account number and account type). The prenote period is three banking days from the date the direct deposit information is set up on the mail code. A change to the direct deposit account information establishes a new prenote period. Show Note: During the prenote period, warrants are issued when the direct deposit mail code is paid.
To calculate when the prenote period ends, start the count of banking days with the first banking day after you set up the account information or made a change to the routing number, account number and/or account type in TINS. For example:
Note: A prenote period does not apply to a cancellation of direct deposit, which takes effect immediately. The payee’s financial institution is required to respond to a prenote test within two banking days if one or more of the following is invalid:
If subsequent changes are made to the instructions after the initial setup, the three banking days prenote period starts again. See Notifications of Change for additional information. How long does a direct deposit Prenote take?The prenote period is three banking days from the date the direct deposit information is set up on the mail code. A change to the direct deposit account information establishes a new prenote period. Note: During the prenote period, warrants are issued when the direct deposit mail code is paid.
Do I have to do anything for a Prenote?To send a prenote, all you need to do is make a $0 ACH credit to the counterparty's bank account. The prenote is considered successful if you don't receive an ACH Return or Notification of Change related to it from the counterparty's bank.
What is the difference between a Prenote and direct deposit?A prenote, or prenotification, is used to help employers confirm that they have the correct bank accounts on file for paying employees by direct deposit. Offering direct deposit as a payment option is convenient for your employees and can save your business a lot of money.
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