An NOC is sent by the RDFI to notify the ODFI and Originator of incorrect information in an ACH entry. The Originator must make the necessary changes within 6 banking days or before the next payment cycle, whichever is later.
The ODFI is responsible for ensuring that all ACH entries comply with the Nacha Operating Rules and for properly transmitting entries to the ACH Operator. The ODFI also warranties the validity of the entries it transmits.
In ACH operations, a "batch" refers to a group of ACH transactions submitted together by an ODFI for processing by the ACH Operator. Batching allows for efficient processing and settlement of multiple transactions.
Prenotes are zero-dollar test transactions sent by the Originator to verify the accuracy of the Receiver's account information before initiating actual (live) ACH entries. This helps prevent errors in live transactions.
Under the Nacha Operating Rules, consumers have 60 calendar days from the settlement date of an unauthorized debit entry to notify their financial institution and have the entry returned.
