HR Fast Facts: What Is Pre-Notification Authorization?
The pre-notification period (pre-note period), or account validation, is a period in which an employee’s bank tests the Transit/ABA Number and Account Number information for new direct deposit accounts.
The pre-notification period (pre-note period), or account validation, is a period in which an employee’s bank tests the Transit/ABA Number and Account Number information for new direct deposit accounts. The test takes place after the information for the direct deposit is entered, but occurs before an actual direct deposit is processed. This ensures that money is deposited into the correct account.
A company administrator can forgo the pre-note period at the company or employee level. However, it is recommended to go through the pre-note process whenever direct deposit information is entered within an employee file number. Once the pre-note process is completed, direct deposit won’t start until payroll is processed after the pre-note date.
