ACH Forms

C05 ACH NOC code: Incorrect Transaction Code

What C05 means

The payment was aimed at the wrong type of account, for example checking when the account is savings. The receiving bank is sending you the correct transaction code.

Checked against 5 sources. Last reviewed .

C05 key facts

Official title Incorrect Transaction Code
Status In use
What the notice gives you The correct two-digit transaction code. For example 22 is a checking credit and 32 is a savings credit.
Used with All payment types.
Sent by Receiving bank (RDFI), within 2 banking days of the payment settling
Your deadline Within six banking days of receiving the notice, or before you send another payment to that account, whichever is later. For a one-time payment you may choose whether to act on it.
Was the payment returned? No. A Notification of Change means the payment was posted.

Update your records

  1. Change the account type you hold for this person or business: checking, savings, or another type.
  2. Your bank or software then uses the right transaction code on future payments.
  3. Change the details everywhere they are stored: payroll, accounts payable, and saved templates at your bank.

Questions and answers

Is C05 an ACH return code?

No. C05 is a change code on a Notification of Change (NOC). The payment was posted. The bank is telling you that the account type on your records is wrong, so future payments use the right transaction code.

How long do I have to act on a C05 notice?

Within six banking days of receiving the notice, or before you send another payment to that account, whichever is later. For a one-time payment you may choose whether to act on it. The receiving bank sends the notice within two banking days of the payment settling, and your bank passes it to you within two banking days after that.

Sources

  1. Minor Rules Topics, effective June 21, 2024 (Originator action on Notification of Change), Nacha
  2. Green Book, chapter 6: Notification of Change, US Treasury, Bureau of the Fiscal Service
  3. FedACH Notification of Change exception form, Federal Reserve Financial Services
  4. 2026 Corporate User ACH Quick Reference Cards, EPCOR
  5. ACH Return, NOC and Transaction Codes, Commerce Bank

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General information, not legal or financial advice. Rules change and banks set their own requirements. Check with your bank before you act. ACH Forms is not affiliated with Nacha.