Prenote

A prenotification, or prenote, is an effective way to validate certain information before completing an electronic transaction. Think of it as a trial run to ensure that the transaction will be completed without any bugs.

The prenote process involves sending through a zero-dollar transaction to verify that the payment details they’ve been given are legit. No actual money is exchanged: this is just a way to identify any discrepancies or errors. If there is only a small variance, the error can be corrected before the real transfer happens. If none of the data matches up, it’s probably a fraudster, meaning the whole deal should be stopped.

Prenotes help prevent payment errors, minimize the risk of returned transactions, and help maintain the  integrity of electronic payments. The process also helps merchants stay compliant with banking regulations and security standards.