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If your business originates ACH payments, you may have come across something called a “Notification of Change,” or NOC, and thought, “Not Our Concern.” But NOCs are definitely your concern, and here’s why. 

What Are NOCs? 

NOCs are messages sent through the ACH Network to alert you that something in your payment instruction needs to be updated, such as an incorrect routing number, account number or transaction code. These updates help ensure your payments continue to process correctly and on time. 

How Do NOCs Work? 

Let’s walk through a common scenario: 

You send an invoice to a customer, and they authorize you to pull the payment from their account via ACH. You initiate the transaction, but when it arrives at the customer’s financial institution, it hits a snag. Maybe you coded the payment for a checking account, but the customer only has a savings account. 

At this point, the receiving financial institution (called the RDFI) has two choices: 

1. Return the payment to you (a hassle for both you and your customer), or 

2. Post the payment and send you an NOC to let you know how to correct the payment information for future use. 

The second option is more customer-friendly and ensures you get paid. But it also means you have to take action. 

What Are You Required to Do?

According to the ACH Rules, if you receive an NOC, you must make the change within six banking days or before you send your next ACH entry for that customer, whichever comes first. 

If you don’t expect to send another payment to that customer, no need to worry. But if they’re a repeat customer (and hopefully they are!), you need to update the information in your system to avoid future issues. 

Why Acting on NOCs Matters 

Responding to NOCs isn’t just about compliance, it’s smart business. Keeping your payment information up to date helps you:

• Reduce errors 

• Avoid rejected payments 

• Ensure prompt payment 

• Maintain accurate records 

• Provide better customer service 

And let’s face it – no one likes chasing down failed transactions or dealing with late payments. 

Stay Ahead of the Game

To stay compliant and efficient, follow these best practices: 

• Monitor for NOCs daily 

• Apply changes as soon as possible 

• Document your updates and compliance efforts 

Still Have Questions? 

Reach out to us by contacting Member Support, via online chat or visit epcor.org/corporateuser for more compliance resources tailored to corporate ACH users.