# ACH NOC and SEC handling

Learn how external account information is updated.

When you originate an ACH transaction with Stripe (for example, using `InboundTransfer`, `OutboundTransfer`, or `OutboundPayment` objects with Financial Accounts for platforms), the financial institution receiving the transaction might return a Notification of Change (NOC). This is a message indicating that new information is available about the destination account (such as a new account number or routing number).

ACH network rules require Stripe to update saved account information when we receive an NOC. We automatically process the NOC by updating the relevant `PaymentMethod` or `BankAccount` object and notify you through a webhook. You might want to monitor these webhooks to inform your users that account information has changed or to update account information that you’ve persisted outside of Stripe.

> #### Accounts API v2
> 
> The Events v2 API doesn’t include thin events that correspond to the snapshot events referenced here. Listen to the v1 events for information about your v2 `Accounts`.

| NOC type                                       | Fields updated                           |
| ---------------------------------------------- | ---------------------------------------- |
| Account number                                 | `account_number`, `last4`, `fingerprint` |
| Routing number                                 | `routing_number`, `fingerprint`          |
| Account use (for example, checking or savings) | `account_type`, `fingerprint`            |

NOCs aren’t processed for `OutboundPayment` objects where payment method details are provided inline (using `destination_payment_method_data`) as there is no persisted `PaymentMethod` or `BankAccount` object in this case to update.

## NOC for a PaymentMethod 

When we receive an NOC for a transaction originated with a `PaymentMethod` object:

- Stripe updates the `PaymentMethod` and triggers a `payment_method.updated` webhook.
- If the `PaymentMethod` is attached to a `Customer` (for use with `OutboundPayment` objects), Stripe triggers a `customer.source.updated` webhook.
- If the `PaymentMethod` is attached directly to a Stripe account (for use with `InboundTransfer` or `OutboundTransfer` objects), Stripe triggers an `account.external_account.updated` webhook.

## NOC for a BankAccount 

When we receive an NOC for a transaction originated with a `BankAccount` object:

- Stripe updates the `BankAccount` object.
- If the `BankAccount` is attached to a `Customer` (for use with `OutboundPayment` objects), Stripe triggers a `customer.source.updated` webhook.
- If the `BankAccount` is attached directly to a Stripe account (for use with `InboundTransfer` or `OutboundTransfer` objects), Stripe triggers an `account.external_account.updated` webhook.

In cases where the `BankAccount` that’s set up as your platform’s primary external account is updated, Stripe also notifies you by email. We don’t send an email for updates to external accounts that are attached to your connected accounts’ Stripe accounts, or for updates to external accounts attached to `Customer` objects.

## Standard SEC handling 

Each ACH transaction has an associated Standard Entry Class (SEC) code that describes the accounts involved and how the transaction was authorized.

Financial Accounts for platforms determines the SEC code based on whether the account receiving the ACH entry is owned by a company or an individual. You specify the account holder type in [destination_payment_method_data.us_bank_account.account_holder_type](https://docs.stripe.com/api/treasury/outbound_payments/create.md#create_outbound_payment-destination_payment_method_data-us_bank_account-account_holder_type) when:

- You make [OutboundPayments](https://docs.stripe.com/financial-accounts/connect/moving-money/out-of/outbound-payments.md)
- You set up a [stored PaymentMethod](https://docs.stripe.com/financial-accounts/connect/moving-money/working-with-bankaccount-objects.md#setupintents)

Only send [InboundTransfers](https://docs.stripe.com/financial-accounts/connect/moving-money/into/inbound-transfers.md) and [OutboundTransfers](https://docs.stripe.com/financial-accounts/connect/moving-money/out-of/outbound-transfers.md) to accounts owned by the FinancialAccount owner and with a `company` owner type.

SEC codes are determined based on the receiving account’s owner type as follows:

| Money movement   | Owner type   | SEC code |
| ---------------- | ------------ | -------- |
| InboundTransfer  | `company`    | `CCD`    |
| OutboundTransfer | `company`    | `CCD`    |
| OutboundPayment  | `company`    | `CCD`    |
| OutboundPayment  | `individual` | `PPD`    |