Skip to content
Breadcrumbs

TexPayment Resource

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Direct Deposit Processing
Prenotification Period, Account Validation Service and Account Confidence Score

When direct deposit instructions are first set up or current instructions are modified, a prenotification (prenote), account validation service (AVS) or account confidence score (ACS) test is sent through the direct deposit network to verify the accuracy of the information. Prenotification verifies the routing number, account number and account type. The prenote period is three banking days from the date the direct deposit information is set up on the mail code.

The AVS verifies the routing number and account number and adds an additional verification for account ownership. The AVS verification process is performed nightly, and results are updated in the Texas Identification Number System (TINS) the same night.

The ACS evaluates factors such as account age, payment history and account activity to assess account risk. The ACS verification process is also performed nightly, and results are updated in TINS the same night.

Note: During the prenote period, warrants are issued when the direct deposit mail code is paid.

If the prenote, AVS or ACS test finds … Then …
An error during a setup or change of the information The Comptroller’s office receives an electronic notification of change (NOC) that either:
  • Corrects the account information with the same effective date and changes the prenote status from P (pending) to A (active).
    – or –
  • Cancels the account information, which requires a new direct deposit setup.
No errors Payments by direct deposit may be issued the next day or up to three banking days from the date the mail code was set up or changed in TINS, based on the verification method.

To calculate when the prenote period ends, start the count of banking days with the first banking day after you set up the account information or made a change to the routing number, account number and/or account type in TINS. For example:

  • If you set up the direct deposit on Monday, May 12, the first banking day counted is Tuesday, May 13.
  • Counting only banking days — no weekends or holidays — the third banking day will be Thursday, May 15.

Note: A prenote, AVS or ACS period does not apply to a cancellation of direct deposit, which takes effect immediately.

The payee’s financial institution is required to respond to a prenote or AVS test within two banking days if one or more of the following is invalid:

  • Routing number
  • Account number
  • Account type

If subsequent changes are made to the instructions after the initial setup, the three banking day prenote period or AVS validation process starts again.

See Notifications of Change for additional information.