Prenote new vendor bank accounts

A prenote is a $0 ACH entry that checks a bank account is real and open before any money goes to it. With prenotes on, Fidesic sends one for each vendor bank account that is added or changed, and holds ACH payments to that account until the prenote has had time to come back.

Who can use this: companies that pay vendors by direct ACH, where Fidesic delivers the ACH file to your bank. See Setting Up Direct ACH. Turning it on needs access to company preferences.

Turning prenotes on

1. Go to Settings → Company → Preferences.
2. In the Onboarding section, turn on Prenote New Vendor Bank Accounts.

The setting is off until you turn it on. Once it's on, each vendor checking or savings account that is added, or whose routing or account number changes, gets a prenote. That includes changes made on the vendor page, by a sync from your accounting system, by a spreadsheet import, or by the vendor in the Vendor Account Center.

How the hold works

1. The prenote goes out in your next direct ACH file.
2. ACH payments to that account are held until 3 banking days after the prenote is sent.
3. After that, held payments go out in the first ACH file from then.

Only ACH payments to that one account are held. Checks, and payments to the vendor's other accounts, go out as usual.

Where you see it

On the vendor's Bank Account tab, each account with a prenote shows its status:

• Prenote pending: it goes out in your next ACH file, and ACH payments to the account are held until it clears.
• Prenote pending until a date: it has been sent, and payments are held until that date.
• Prenote cleared on a date: payments go out as usual.
• Prenote returned, with the bank's code: payments are held until the account's bank details are updated.
• Prenote notification of change, with the bank's code: payments aren't held, but check the account's details with the vendor.

A held payment shows a notice on the payment's detail page, such as Held for ACH prenote until a date, explaining when it will go out.

If your bank returns the prenote

Your bank tells you when a prenote is returned, usually with a code such as R03 (no account) or a notification of change such as C01 (incorrect account number). To record it in Fidesic:

1. Open the vendor and go to the Bank Account tab.
2. Click Mark Returned on the account.
3. Enter the code your bank gave, such as R03 or C01, and click Mark Returned.

A return code (R01 to R99) holds ACH payments to the account until its bank details are updated. Correcting the routing or account number sends a new prenote, and payments go out once that one clears. A notification of change code (C01 to C99) only flags the account, so check its details with the vendor.