Monitor ACH Activity and Manage Follow-Up
Overview
To help business owners manage their ACH responsibilities, we’ve organized ACH best practices into four clear stages. Together, these stages provide a practical framework for reducing risk, maintaining compliance, and strengthening ACH processes over time.
Stage 3:
Monitor ACH Activity and Manage Follow-Up
After an ACH transaction is initiated, monitoring confirms whether it completed as expected. Staying engaged at this stage allows you to identify issues early, correct problems promptly, and keep ACH activity running smoothly over time.
Review ACH Activity Regularly
Review ACH activity on a consistent schedule.
Check for completed transactions, returned transactions, Notices of Change (NOCs), and notifications. You can also set up transaction alerts and regularly review your Activity Center to stay informed about ACH activity that may require attention.
Consistent monitoring helps you identify issues early and take corrective action before they become recurring problems.
First Bank Guided Tutorial:
Reviewing ACH Notices & Returns
This guided tutorial shows how to manage ACH notices and returns in your First Bank online banking dashboard.
Identify and Address Returns
Returns should be reviewed and addressed immediately.
Review the return code, determine the cause, and take the appropriate corrective action before initiating another transaction. Repeated returns for the same issue can create operational risk, increase rework, and may indicate weaknesses in existing processes.
Use your online banking system to review return details and determine what action to take next. The ACH Notices & Returns tutorial shows where to locate this information.
Example:
An ACH transaction is returned because funds were not available at the time of processing. The return appears in the ACH Notices & Returns screen. The issue is reviewed, the customer is contacted, and the next transaction is scheduled after the account is funded.
Review and Act on Notices of Change (NOCs)
A Notice of Change (NOC) informs you that account information associated with a transaction has changed and should be updated.
Guided tutorial
NOCs require action. Review the notice promptly, update your records as instructed, and apply the correction before submitting future transactions. Ignoring NOCs can lead to repeated exceptions, unnecessary returns, and compliance concerns.
Example:
An NOC indicates that a routing number has changed. The updated information is verified, internal records are corrected, and future transactions use the revised routing number.
Resolve Issues and Document Outcomes
Resolve transaction issues and document outcomes. Record the cause of the issue, the action taken, and the final resolution. Keeping this information organized allows your team to respond faster when similar situations arise.
Example:
A return shows that account information is no longer valid. The issue is documented, updated account information is requested, and account update steps are reviewed before the next transaction is initiated.
Maintain Records for Compliance
Maintain authorization and transaction records. Keep records organized and accessible to support reviews, audits, and internal controls. Authorization records should be retained for at least two years.
Document how returns and NOCs were resolved and when record updates were made. Maintaining complete records supports compliance and demonstrates that required corrections were addressed.
Example:
A recipient questions a prior transaction months later. Because the authorization record and related transaction history are retained and easy to access, the team can review the details and respond with confidence.
Use Insights to Improve Your Process
Use past returns, NOCs, and ACH issues to refine how transactions are prepared and executed. Review patterns in exceptions and adjust procedures, controls, account maintenance practices, or communication steps to reduce future issues.
Recurring returns or repeated NOCs often signal a process problem that should be corrected rather than worked around.
Final Takeaway
Monitoring is not just about reviewing activity. It is about taking action.
Review ACH activity regularly, address returns promptly, act on NOCs when received, and apply what you learn to strengthen future transactions. Consistent follow-up helps keep ACH operations reliable, compliant, and efficient as activity grows.
Additional Resources
- How to Manage ACH Notices & Returns
- Treasury Services Guided Tutorials
- Treasury Services Hub
- ACH Best Practices
Frequently Asked Questions
What happens after I send an ACH transaction?
After initiating an ACH transaction, continue monitoring activity, review any returns, Notices of Change (NOCs), or other notices, and resolve issues as they appear.
What is an ACH return?
An ACH return is a notification that a transaction could not be completed and requires follow-up.
What is a Notice of Change (NOC)?
A Notice of Change (NOC) notifies you that account information should be updated before future ACH transactions are submitted.
Why should I review ACH activity?
Reviewing activity allows you to identify issues early, correct problems promptly, and reduce repeat exceptions.
How long should authorization records be retained?
Authorization records should be retained for at least two years.
What should I document after an issue occurs?
Document the transaction, what happened, the corrective action taken, and how the issue was resolved.
How does monitoring improve future ACH activity?
Monitoring highlights patterns that allow you to strengthen processes, reduce future issues, and improve compliance.
Next Step
Need support or want to review your process?
If you need help reviewing activity, understanding returns, or improving your process, your Treasury Services team can walk through it with you and provide practical guidance.
