Among some of the biggest changes in the payments industry in recent years is the rapid adoption of electronic check processing. As the payments industry continues its shift toward a virtually all-electronic payments environment, the Federal Reserve Banks have worked toward modernizing our check processing platform, upgrading FedLine® User Authentication, and enhancing the technology infrastructure for our Fedwire® Services. These initiatives are moving steadily toward implementation.
Our Check Platform Modernization initiative is mapped for efficiency, moving from multiple electronic processing sites, to one site, to support high-quality, efficient processing. This change will enable us to continue to meet the demands of the ever-shifting payments industry and to focus on contemporary and adaptable technology platforms.
Support from our customers has played a critical role in the success of this effort to date. Your cooperation through every phase of the Check Platform Modernization initiative is appreciated, and we look forward to completing this transition together.
Since the beginning of the year, the Check Platform Modernization initiative has been moving full speed ahead. After rigorous internal testing, customer testing began in July 2012, and will continue through mid September. With a substantial number of customers completing testing with positive results, we are moving forward with conversion to the new platform. As indicated in the September 7, 2012, announcement (PDF), we are planning a phased conversion, beginning with substitute checks, followed by PDF deliveries, and finally deposits and presentments of all image cash letters through our new platform.
|Event||Calendar Day||Business Day|
|Substitute Check Implementation||September 21, 2012||September 24, 2012|
|PDF Implementation||October 5, 2012||October 9, 2012|
|Deposit and FedReceipt® Implementation||October 26, 2012||October 29, 2012|
We will continue to keep you informed as progress is made toward implementation. For your convenience, information regarding this initiative can be found via the Check Platform Modernization Resource Center.
Also picking up speed this year is the FedLine User Authentication Enhancements migration, an effort to move FedCash® Services and select Check Services Subscribers, using our FedLine Web® access solution, to a security token or digital certificate, as applicable. This migration, which will occur over the next 18 months, will help us keep pace with evolving security standards while providing increased efficiency and security.
In advance of the migration, this past spring we began issuing new credentials to Subscribers who were new to our FedLine Web FedCash and Check Services. The new credentials are also issued to current Subscribers who submit change requests.
These enhancements will enable us to provide you more efficient and secure delivery of our FedCash and Check Services. This migration will continue into early 2014, and details will be provided to your End User Authorization Contacts (EUACs), at the appropriate time, to transition affected Subscribers within your institution to their new credentials.
For more information about the FedLine User Authentication Enhancements initiative, the migration process and details regarding the specific credential types, please visit the FedLine User Authentication Enhancements Resource Center.
We are also making progress on the Federal Reserve Banks’ Fedwire Services mainframe migration. This multi-year technology modernization effort is aimed at migrating core processing and settlement functionality from the legacy mainframe to distributed platforms for the Fedwire Funds Service and Fedwire Securities Service. When it comes to technology, upgrades are a necessary fact of life to keep up with technological advances and the benefits they offer. To support this effort, the Federal Reserve Banks will implement several changes to the infrastructure that support Fedwire Services.
Though these infrastructure upgrades do not include any functional or interface changes and should be transparent to your payment applications that interface with the Fedwire Services, you will have an opportunity to test your payment applications in the Depository Institution Testing (DIT) environment. This will help to avoid the infrastructure changes inadvertently impacting your payment applications. Questions about testing can be directed to your designated Wholesale Testing Unit.
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