When initiating ACH Payments, it's possible to receive a Notification of Change (NOC) code as a return from the RDFI.
A NOC code is simply a notification that the payment order information is incorrect and must be corrected to ensure efficient processing. The payment order in question was still successfully processed, but it's a courtesy given by the bank, specifically the RDFI, to prevent future issues in transacting against this bank account.
In Modern Treasury, if you receive a NOC code, you will see a $0.00 Return object that contains the NOC code under Code alongside the associated Reason. Again, this is not a standard return and is rather the bank issuing a notification tied to a payment order - "we processed the payment, but some aspect of the account information has changed."
An example NOC you may receive in Modern Treasury.
MT currently handles NOC codes automatically with the change information provided in them. We adjust the external account to reflect those changes to proactively prevent future issues.
To see the account number and routing numbers attached to the original payment order, you can click the Payment Order link in the Return and navigate to the Counterparty Details tab.
Below is a useful resource outlining the common NOC codes you may receive:
|
CODE |
DESCRIPTION |
INITIATED BY |
CORRECTED DATA |
ENTRY TYPE |
TIMEFRAME |
NOTES |
EXAMPLES |
|
C01 |
Incorrect DFI Account Number |
RDFI |
Correct DFI Account Number appears in first 17 positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: For Outbound IAT entries, the correct Foreign Receiver’s Account Number will appear in the first (left justification) 35 positions of the Corrected Data Field. |
This code would also be used when an Account Number is incorrectly formatted. |
|
C02 |
Incorrect Routing Number |
RDFI |
Correct Routing Number (including Check Digit) appears in first nine positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: For Outbound IAT Entries, this field refers to the Gateway Operator’s routing number. |
Due to merger or consolidation, a once valid Routing Number must be changed. |
|
C03 |
Incorrect Routing Number and Incorrect DFI Account Number |
RDFI |
Correct Routing Number (including Check Digit) appears in first nine positions of the Corrected Data Field--correct DFI Account Number appears in the 13th through 29th position of same field with a space in the 10th, 11th, and 12th positions. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: This change code should not be used for Outbound IAT Entries due to field length limitations. |
Due to merger or consolidation, a once valid Routing Number must be changed, and in most instances this change will cause a change to the account numbering structure. |
|
C05 |
Incorrect Transaction Code |
RDFI |
Correct Transaction Code appears in first 2 positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. |
The account number contained in the Entry is a checking account number but the Entry contains a Transaction Code for a savings account, or the account number contained in the Entry is a savings account number but the Entry contains a Transaction Code for a checking account. |
|
C06 |
Incorrect DFI Account Number and Incorrect Transaction Code |
RDFI |
Correct DFI Account Number appears in the first 17 positions of the Corrected Data Field — correct Transaction Code appears in the 21st and 22nd positions of the same field with spaces in the 18th, 19th, and 20th positions. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: This change code should not be used for Outbound IAT entries due to field length limitations. |
The account number contained in the Entry is incorrect and the Transaction Code does not match the type of account, i.e., the account number structure is a checking account number but is not a valid account number and the Transaction Code contained in the Entry is for a savings account. |
|
C07 |
Incorrect Routing Number, Incorrect DFI Account Number, and Incorrect Transaction Code |
RDFI |
Correct Routing Number (including Check Digit) appears in the first 9 positions of the Corrected Data Field — correct DFI Account Number appears in the 10th through 26th positions of the same field — and correct Transaction Code appears in the 27th and 28th positions of the same field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: This change code should not be used for Outbound IAT Entries due to field length limitations. |
An Entry posting to a savings account should actually be going to a demand account or vice versa, and the routing number and account number are also incorrect. |
|
C08 |
Incorrect Receiving DFI Identification (IAT only) |
RDFI |
The correct Receiving DFI Identification appears in the first 34 positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. |
|
|
C09 |
Incorrect Individual Identification Number/Incorrect Receiver Identification Number |
RDFI |
Correct number appears in first 22 positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. IAT: For IAT Entries, the correct Receiver Identification Number appears in the first 15 positions of the Corrected Data Field. |
Individual’s Identification Number within the Company is incorrect, either on initial input or through merger or consolidation. |
|
C13 |
Addenda Format Error |
RDFI |
Information in the Entry Detail Record was correct and the Entry was able to be processed and posted by the RDFI. However, information found in the Addenda Record was unclear or was formatted incorrectly. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
Time frame not applicable for merger or acquisition. |
A CCD Entry is received with an 05 Addenda Type Code, but the addenda information does not contain payment related ANSI ASC X12 data segments or Nacha-endorsed banking conventions. |
|
C14 |
Incorrect SEC Code for Outbound International Payment |
Gateway |
The RDFI/Gateway has identified the Entry as an Outbound international payment and is requesting that future Entries be identified as IAT Entries and convey information required by the Gateway for OFAC compliance. The value IAT must appear within the first 3 positions of the Corrected Data Field. |
NOC (COR) |
2 Banking Days from original Entry Settlement Date |
This Change Code may only be used by a Gateway to request a change to the IAT format. It may not be used by RDFIs to request other changes involving the use of Standard Entry Class Codes. |
A CCD or PPD Entry is received by the RDFI and is posted to the Receiver’s account, but the Receiver has also placed a standing instruction with the RDFI to forward all funds from the entry to the Receiver’s account in another country. |
Resources: