Electronic Funds Transfer – Direct Deposit
Prenote Period and Notification of Change (NOC)

Prenote Period

Any new setups or changes to direct deposit information will start a prenotification (prenote) period of three banking days. This prenote period allows the financial institution to test the information provided.

When a payment is generated while the employee is in the three banking days prenote period, a payroll warrant is issued. After the financial information has been verified, all payments made after the effective date for direct deposit (when the prenote period has ended) are paid by direct deposit.

Notification of Change (NOC)

When a financial institution finds invalid direct deposit information on a file, either during the prenote period or during any transmission, a notification of change (NOC) is sent to the Comptroller’s office.

If the correct information is known and provided by the financial institution, it is noted on the NOC and the Comptroller’s office makes the corrections and resubmits the file within 24 hours. Based on this change, a new prenote period begins.

If the financial institution does not provide the correct information, the Comptroller’s office cannot make any changes and must cancel the direct deposit instructions. The agency must then contact the employee so a corrected Direct Deposit Authorization form can be completed, or the information submitted in CAPPS can be corrected. Once the information is received, the agency must enter the revised direct deposit instructions, and a new prenote period begins.

To learn more about the direct deposit program, see Direct Deposit in TexPayment Resource.

Sources

Texas Government Code, Section 403.016; 34 Texas Administrative Code Section 5.13.