Overview
Pre-notes, also known as pre-notifications, are zero-dollar ACH transactions used to verify banking information before processing actual payments. These test transactions help ensure accuracy and prevent errors in ACH file transmissions. This article will walk through creating ACH pre-notes.
Why Use ACH Pre-notes?
- Bank Account Verification: Confirm routing and account numbers before sending real funds
- Error Prevention: Catch data entry mistakes early
- Compliance & Best Practices: Many banks recommend or require pre-notes before initiating ACH payments
How to Create ACH Pre-notes with ACH Universal Online
Enable 'Pre-notes in ACH Setup. ACH Universal Online will then treat any $0.00 amount as a pre-note. Based on your setting choice, it will generate either a debit or a credit pre-note.
Once 'pre-notes' has been enabled, there are a few different ways to generate an ACH file with pre-notes.
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File Import Method (Excel/CSV)
Create an Excel or csv file with zero dollar amounts.
Import your Transactions
Create your file as normal
2. Add a Manual Transaction to Create a Pre-Note
3. Using QuickBooks Online
Create an expense in QuickBooks Online
Integrate with QuickBooks Online as you normally would
Click to Create ACH File as normal
Frequently Asked Questions (FAQs)
1. What is a pre-note in ACH processing?
A pre-note (or pre-notification) is a zero-dollar ACH transaction sent to verify a recipient's bank account details before initiating actual payments or collections.
2. Is sending a pre-note required?
While not always mandatory, many banks recommend or require pre-notes to ensure account accuracy and reduce the risk of payment errors.
3. What if my pre-note fails?
If a pre-note fails, your bank will typically notify you with a return code. You should correct the account information and resend the pre-note before initiating live transactions.
Need Help?
Still have questions? Contact Treasury Software Support or visit www.treasurysoftware.com for personalized assistance.
