Prenotes

A prenote is a zero dollar ACH transaction that is used to verify the validity of a bank account. It functions the same way as an ACH in that failures will contain a NACHA return code for why they failed.

By sending out prenotes we can identify bank accounts that are not safe to submit ACH’s to. Because they are zero dollars, they should not return R01 (unfortunately some still do for whatever reason).

They have the added benefit of counting towards our successful ACH’s. This results in lower ACH return rates, and helps us keep the return rate under what jpm/usio says they need to be.

There is, however, a cost associated with them.