NOC Code
A NOC code (Notification of Change code) is a message sent by a receiving bank through the ACH network to notify the originating bank that account information on a transaction needs to be corrected. It flags issues like incorrect account numbers, routing numbers, or account types without rejecting t
NOC Code Definition
A NOC code (Notification of Change code) is a message sent by a receiving bank through the ACH network to notify the originating bank that account information on a transaction needs to be corrected. It flags issues like incorrect account numbers, routing numbers, or account types without rejecting the payment.
NOC Code in Practice — Example
Your business sends payroll via direct deposit. One employee recently changed banks but gave you their old routing number by mistake. The payment still goes through, but the receiving bank sends a NOC code (C01 — incorrect account number) back through the ACH network. Your payroll system flags this notification, and you contact the employee to get the correct account details before the next pay period.
Why NOC Code Matters for Your Business
NOC codes are essentially the ACH network's way of saying "this worked, but fix it before next time." Ignoring them leads to failed payments down the road. For businesses running regular ACH transactions — payroll, vendor payments, subscription billing — processing NOC codes promptly keeps money flowing smoothly.
The ACH rules require originators to make corrections within six banking days of receiving a NOC. If you don't, you risk payment rejections, return fees, and potential NACHA violations. Repeated failures to process NOCs can result in fines or losing your ability to originate ACH transactions.
For businesses with high transaction volumes, automating NOC processing is essential. Modern banking and payroll platforms can flag and even auto-correct many NOC issues, reducing manual work and preventing disruptions.
How NOC Codes Work
| Code | Meaning | What to Fix |
|---|---|---|
| C01 | Incorrect DFI account number | Update account number |
| C02 | Incorrect routing number | Update routing number |
| C03 | Incorrect routing number AND account number | Update both |
| C05 | Incorrect transaction code | Change account type (checking ↔ savings) |
| C06 | Incorrect account number AND transaction code | Update both |
| C07 | Incorrect routing number, account number, AND transaction code | Update all three |
Timeline: You must make corrections within 6 banking days of receiving the NOC. The corrected information should be used for all future transactions.
NOC Code vs ACH Return Code
A NOC code is informational — the payment still went through, but something needs to be corrected for future transactions. An ACH return code means the payment was rejected or returned (e.g., insufficient funds, account closed). NOCs are warnings; returns are failures.
FAQ
Q: Does a NOC code mean my payment failed?
A: No. The payment was processed successfully. The NOC is a heads-up that information needs to be corrected for future transactions. Think of it as a "fix this next time" notice.
Q: How do I receive NOC codes?
A: They come through your bank or payment processor, typically in your ACH reporting. Many payroll and AP systems flag NOCs automatically. Check with your bank on how they deliver NOC notifications.
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