In the electronic check-processing environment, a non-dollar transaction sent through the ACH network for the purpose of verifying the accuracy of the cardholder's account data.
a zero dollar transaction submitted to verify that a payee's or payer's account, routing number, and name are correct
a zero dollar transaction used to verify the routing number and account number
A zero dollar test transaction that verifies that the routing number, account number, and name entered in an ACH transaction is correct. A prenote is transmitted to a receiving bank, and if any problems arise with the transaction, the receiving bank will notify FirstBank of the problem. In turn, FirstBank will send you a notice of the rejection and any necessary corrections that need to be made. If you choose to transmit a prenote, you must wait six business days prior to submitting a dollar amount transaction. This wait period gives the receiving bank sufficient time to notify you of the rejection.
A zero dollar ACH transaction that is used to verify that information contained in the ACH record is correct.
Notification to a financial institution that an originator will send one or more entries to a receiver's account. A zero-dollar transaction used for verifying a customer account number before initiating live transactions.
The test phase of an individual's direct deposit start-up in which bank account information transactions, but no money, are sent through ACH channels to destination banks. This information is either accepted as correct or rejected as in error.
