Payers who pay by ACH (Automated Clearing House) payments, might occasionally encounter a "Notification of Change" or NOC. While it might seem like an extra step, the NOC process is a vital part of ensuring the accuracy and efficiency of your electronic transactions.

What is an ACH Notification of Change (NOC)?

An ACH Notification of Change (NOC) is an electronic message received by us (the originating financial institution) through the ACH network from the receiving financial institution (the bank or credit union where funds are being deposited or withdrawn). The NOC indicates an error in the ACH transaction information that was submitted by the payer when making a payment submitted. 

Think of it as a digital heads-up that some of the account information provided for a previous ACH transaction was incorrect or needs updating. Instead of rejecting the payment outright, the receiving institution processes the transaction but simultaneously sends an NOC to inform the originator (ePayPolicy) of the necessary corrections for future transactions.

Why are NOCs Important?

NOCs play a crucial role in maintaining the integrity and efficiency of the ACH system. Here's why they are important for you and the overall payment process:

• Preventing Future Errors: The primary purpose of an NOC is to correct inaccurate information, such as incorrect account numbers and/or routing numbers. By addressing these errors, you can avoid potential payment failures, delays, and the associated inconvenience.
• Ensuring Timely Payments: While an initial transaction with incorrect information might still go through when an NOC is issued, failing to update the details will lead to rejected payments in the future. Addressing NOCs promptly ensures your future payments are processed smoothly and on time.
• Reducing Administrative Burden: By proactively correcting errors through the NOC process, financial institutions and businesses can reduce the need for manual intervention, phone calls, and investigations related to failed or returned payments. This ultimately saves time and resources for everyone involved.
• Maintaining Compliance: The Nacha Operating Rules, which govern the ACH network, mandate the use of NOCs for certain types of errors. Adhering to this process ensures compliance and helps maintain a reliable payment ecosystem.

How to resolve NOC issues?

If you receive a message about a change in your account or routing numbers when trying to make a payment (example image below), it generally indicates that there's an error in your banking information. To resolve this, you will need to reach out to your banking institution, gather the correct numbers and then use the updated numbers when making a payment. Please note that any AutoPay or recurring payment schedules will also require updating.

For additional information about NOC refer to the National Automated Clearing House Association (Nacha) site at https://www.nacha.org/.