What a prenote is
A prenote, short for prenotification, is a test entry. It travels through the ACH network exactly like a real payment, but the amount is zero and no money moves. Its job is to let the receiving bank check the account details before the first live payment.
Apart from the amount and the transaction code, a prenote looks just like the payments that will follow it: same routing number, same account number, same name.
How a prenote works
- You send the prenote in an ACH file, like any payment, with a zero amount and a prenote transaction code.
- The receiving bank checks the account number. It does not have to check the name.
- The bank answers only if something is wrong. It sends a return if the account cannot be found or is closed, or a Notification of Change if a detail needs correcting.
- You wait until the third banking day after the prenote settles. No return and no correction means the bank reported no problem with the account number.
- You send the first real payment.
Prenote transaction codes
| Account | Real credit | Prenote credit | Real debit | Prenote debit |
|---|---|---|---|---|
| Checking | 22 | 23 | 27 | 28 |
| Savings | 32 | 33 | 37 | 38 |
Every code is in the full list of ACH transaction codes.
You can make a prenote file with the NACHA file generator: tick “Make this a prenote file”.
What the answers mean
| What comes back | Meaning | What to do |
|---|---|---|
| Nothing, by the third banking day after the prenote settles | The bank reported no problem with the account number | Send the real payment |
| A return, such as R03 or R02 | The account was not found or is closed | Get correct details before paying |
| A Notification of Change, such as C01 | The payment could be matched, but a detail is wrong | Update your records with the corrected detail |
If a return or a correction arrives, you must not send payments to that account until you have fixed the problem.
When a prenote is worth it
| Good use | Less useful |
|---|---|
| A new employee’s first direct deposit, when payday is more than a few days away | A payment that must go out today |
| A new vendor you will pay regularly | A one-time payment where a failed payment costs little |
| Re-checking an account after the bank details changed | Checking who owns the account. A prenote cannot do that |
Since June 21, 2024, a prenote may also be sent to re-check an account that you already pay, not only before the first payment. Nacha also suggests a new prenote whenever an account number or bank changes.
Alternatives to a prenote
A prenote is one of several ways to check an account. The others are a routing number check, micro-deposits, a validation service, and a voided check or bank letter. Our guide to ACH account verification compares them and says what each one proves.
Cost and timing notes
- Your bank or processor may charge for a prenote as it does for other entries. Check its fee schedule.
- A prenote can be sent as Same Day ACH, and then it carries the Same Day fee.
- Banking days exclude weekends and Federal Reserve holidays.
Common mistakes
- Sending the real payment too soon. Wait until the third banking day after the prenote settles.
- Ignoring a Notification of Change. Update your records before the next payment.
- Putting an amount on a prenote. A prenote with an amount is rejected. See R19.
- Using the wrong code. Code 23 on a savings account is the wrong account type. Use 33.