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N774 Remark Code: Third Party Processor Fees Alert

N774 is an alert telling you to refer to your Third Party Processor Agreement for fees associated with this payment type. It typically appears when payment is made through a processor, such as a virtual credit card, that may charge the provider a fee.

Quick facts

Code
N774 (RARC N774)
Status
Active In use since July 1, 2016.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Any processing fee withheld is typically the provider's cost under the processor agreement, not the patient's.
Official description
Alert: Refer to your Third Party Processor Agreement for specific information on fees associated with this payment type.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N774 means

Some payers pay providers through third-party processors rather than direct deposit or check. Virtual credit cards are a common example. These arrangements can carry fees for the provider, set out in an agreement with the processor. N774 is the payer’s pointer to that agreement.

It does not change how the claim was adjudicated. It is a notice about the payment channel.

What to do

  1. Check how this payment was delivered and whether a fee was deducted or will be charged.
  2. Review your processor agreement, or the terms you accepted, for fee details.
  3. Reconcile the deposit amount against the remittance, recording any fee separately from claim adjustments.
  4. If you do not want to receive payments this way, contact the payer or processor about switching to another method.

Tracking processor fees by payer helps you see what they cost over time.

Codes that may appear with N774

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): Standard contractual adjustments that appear on the same claim, separate from processor fees.
  • CO-131 (Claim specific negotiated discount.): A claim-specific negotiated discount, which is different from a processing fee.
  • N24 (Missing/incomplete/invalid Electronic Funds Transfer (EFT) banking information.): Electronic funds transfer banking information is missing or invalid.
  • N381 (Alert: Consult our contractual agreement for restrictions/billing/payment information related to these charges.): Points to your contract for restrictions and payment terms.
  • CO-130 (Claim submission fee.): A claim submission fee, a different kind of charge.

N774 FAQ

Why would a payment carry a fee?

Payments made through third-party processors, such as virtual credit cards, can involve transaction fees that the processor deducts or charges to the provider.

Can I avoid processor fees?

Often you can ask the payer or processor for a different payment method, such as standard electronic funds transfer. Options depend on the payer and applicable rules.

Does N774 affect what the patient owes?

No. The patient's responsibility is set by the claim's PR adjustments, not by payment method fees.