Clicking here will take you to the FedFlash home page

Federal Reserve Financial Services

GO BACK

Check/Check 21 Services

Commercial check and ACH posting rule changes

May 15, 2015

On December 1, 2014 (Off-site Link), the Board of Governors of the Federal Reserve System announced changes to Part II of the Federal Reserve Policy on Payment System Risk. These changes are designed to enhance the efficiency of the payment system, to align posting times with current operations and processing times and to strategically position the rules for future advancements in the speed of clearing and settlement. These changes will become effective July 23, 2015.  Below are a few changes that could impact your organization. Review the summary of changes (PDF) for more information.

Changes in posting times
FedACH® transactions

  • The morning posting time for FedACH debit transactions will change from 11:00 a.m. to 8:30 a.m. ET

Commercial Check transactions

  • Credits for deposits or returns of electronic items will post at 8:30 a.m., 1:00 p.m. and 5:30 p.m. ET. Items will post at the next posting time that is at least 30 minutes after deposit. Today these items post hourly beginning at 11:00 a.m. ET.
  • Debits for items presented or returned electronically will post at 8:30 a.m., 1:00 p.m. and 5:30 p.m. ET. Items will post at the next posting time that is at least 30 minutes after presentment. These items currently post on the clock hour one hour after presentment, but not before 11:00 a.m. ET
  • Credits for deposits or returns of Paper Checks will post at 8:30 a.m. ET and debits for checks presented or returns delivered as paper will post at 5:30 p.m. ET
  • A freeze period for customer changes will be in place from July 20 through July 28, 2015.

Changes to the daily Statement of Account
There will be a number of changes to the descriptions, definitions and posting times for many ACH and Check transaction codes. An updated Account Management Guide with the changes will be posted on June 23, 2015.

Managing your Master Account
If you have a Master Account, it is important that you monitor your intraday daylight overdraft balance to ensure that the Federal Reserve Policy on Payment System Risk changes do not result in unanticipated overdrafts. There are a number of tools available via the Account Management Information (AMI) application available through the FedLine® access solutions. Through AMI, you can view your real-time Daylight Overdraft Balance, view when transaction totals will be applied to your account in accordance with Payments System Risk posting rules and view daylight overdraft posting times associated with individual transactions.

We encourage you to share this information with others in your organization who may be impacted by these changes. This could include Accounting, Treasury Management, and Risk Monitoring staff, among others. If you use a processor, we encourage you to share this with them as well.

If you have any questions, please contact the following:

  • Accounting questions can be directed to your District’s Account Service contact
  • ACH questions can be directed to FedACH Customer Support at (866) 234-5681
  • Check questions can be directed to Check Customer Support at (877) 372-2457
  • Federal Reserve Policy on Payment System Risk changes can be directed to your local Credit and Risk Management contact

Announcement

On December 1, 2014 (Off-site Link), the Board of Governors of the Federal Reserve System announced changes to Part II of the Federal Reserve Policy on Payment System Risk. These changes are designed to enhance the efficiency of the payment system, to align posting times with current operations and processing times and to strategically position the rules for future advancements in the speed of clearing and settlement. These changes will become effective July 23, 2015. Review the summary of changes (PDF) for more information.

 

Upcoming Check Services operations freezes

May 15, 2015

Technical Readiness Test
The Federal Reserve Banks’ Check Services will be unavailable between 6:00 a.m. ET, Saturday, June 6, through 2:00 p.m. ET, Sunday, June 7, 2015. The freeze period is necessary to conduct a Systemwide contingency test.

During the test, Check files will not be processed and Deposit Notifications will not be generated. Check files normally deposited during this period will need to be sent after the test is completed, which is expected to be after 2:00 p.m. ET, June 7, 2015. Additional information will be communicated via Email Alert Notifications and on the Check Services page.

Business Resumption Test
The Federal Reserve Banks’ Check Services will be unavailable between 12:01 a.m. ET, Saturday, June 27, through 2:00 p.m. ET, Sunday, June 28, 2015. The freeze period is necessary to conduct a Systemwide contingency test.

During the test, Check files will not be processed and Deposit Notifications will not be generated. Check files normally deposited during this period will need to be sent after the test is completed, which is expected to be after 2:00 p.m. ET, June 28, 2015. Additional information will be communicated via Email Alert Notifications and on the Check Services page.

Announcement

The Federal Reserve Banks’ Check Services will be unavailable between 6:00 a.m. ET, Saturday, June 6, through 2:00 p.m. ET, Sunday, June 7, 2015 and between 12:01 a.m. ET, Saturday, June 27, through 2:00 p.m. ET, Sunday, June 28, 2015. The freeze periods are necessary to conduct Systemwide contingency tests.

 

Federal Reserve Banks to publish new FedReceipt® RTNs

May 15, 2015

New FedReceipt RTNs for FedForward® and FedReturn® Services deposits will be published the week of June 1, 2015. These lists will reflect changes to the FedReceipt lists that have occurred between May 1 and May 31, 2015. For more information, please visit the Check 21-Enabled Services Endpoint Tier Listings, where you can review the April 30, 2015 Summary of Changes to FedReceipt Routing Numbers (XLS).

 

Canadian item cash letter deposit reminders

May 15, 2015

The Federal Reserve Banks offer a Canadian item clearing service for items denominated in either U.S. dollars or Canadian dollars. The following reminders will assist customers in packaging their deposits correctly:

  • Canadian checks must be sorted into the proper cash letter according to whether they are denominated in U.S. or Canadian dollars. “U.S. Funds” or “U.S. Dollars” must be on the face of the item if it is to be included in a U.S. funds cash letter. If you are unsure whether the item is denominated in U.S. funds, there may be a "45" in the Transaction Code, which is located between the amount field and the opening symbol of the account number section of the magnetic ink character recognition (MICR) line.
  • If an item does not state that it is in U.S. funds, you should assume that it is drawn in Canadian funds, and it should be deposited in a Canadian funds cash letter.
  • Every effort will be made to correctly process forward items deposited in mismatched cash letters. However, any item sent in the wrong cash letter type will be subject to a Cash Letter Correction fee, in addition to the forward collection fee, or may be sent back to you as a return item with a return item fee charged.

If you have questions about the Canadian Item service, please contact your account executive.

Reminder

The Federal Reserve Banks offer a Canadian item clearing service for items denominated in either U.S. dollars or Canadian dollars. Canadian checks must be sorted into the proper cash letter according to whether they are denominated in U.S. or Canadian dollars. If an item does not state that it is in U.S. funds, you should assume that it is drawn in Canadian funds, and it should be deposited in a Canadian funds cash letter.

 

FedACH® Services

FedACH Feature: Complimentary webinars showcase FedACH® information services

May 15, 2015

On-demand webinars are available at no charge to help you understand the benefits FedACH information services can deliver to your institution and its customers.

View the FedACH Services Activate Automated ACH Reporting with FedPayments® Reporter webinar to see all of the automated reporting and report delivery options this service can provide.

Also, watch the FedACH Risk® Why and How to Activate FedACH Risk Management Services webinar to learn about the suite of FedACH Risk Management Services:  FedACH Risk Origination Monitoring, FedACH Risk RDFI Alert and FedACH Risk Returns Reporting services.

All of Federal Reserve Financial Services’ seminars and webinars are listed on the Federal Reserve Bank Events page. Register today and watch these complimentary webinars at your desk, at your convenience.

Announcement

On-demand webinars are available at no charge to help you understand the benefits FedACH information services can deliver to your institution and its customers. All of Federal Reserve Financial Services’ seminars and webinars are listed on the Federal Reserve Bank Events page. Register today and watch these complimentary webinars at your desk, at your convenience.

 

Commercial check and ACH posting rule changes

May 15, 2015

On December 1, 2014 (Off-site Link), the Board of Governors of the Federal Reserve System announced changes to Part II of the Federal Reserve Policy on Payment System Risk. These changes are designed to enhance the efficiency of the payment system, to align posting times with current operations and processing times and to strategically position the rules for future advancements in the speed of clearing and settlement. These changes will become effective July 23, 2015.  Below are a few changes that could impact your organization. Review the summary of changes (PDF) for more information.

Changes in posting times
FedACH® transactions

  • The morning posting time for FedACH debit transactions will change from 11:00 a.m. to 8:30 a.m. ET

Commercial Check transactions

  • Credits for deposits or returns of electronic items will post at 8:30 a.m., 1:00 p.m. and 5:30 p.m. ET. Items will post at the next posting time that is at least 30 minutes after deposit. Today these items post hourly beginning at 11:00 a.m. ET.
  • Debits for items presented or returned electronically will post at 8:30 a.m., 1:00 p.m. and 5:30 p.m. ET. Items will post at the next posting time that is at least 30 minutes after presentment. These items currently post on the clock hour one hour after presentment, but not before 11:00 a.m. ET
  • Credits for deposits or returns of Paper Checks will post at 8:30 a.m. ET and debits for checks presented or returns delivered as paper will post at 5:30 p.m. ET
  • A freeze period for customer changes will be in place from July 20 through July 28, 2015.

Changes to the daily Statement of Account
There will be a number of changes to the descriptions, definitions and posting times for many ACH and Check transaction codes. An updated Account Management Guide with the changes will be posted on June 23, 2015.

Managing your Master Account
If you have a Master Account, it is important that you monitor your intraday daylight overdraft balance to ensure that the Federal Reserve Policy on Payment System Risk changes do not result in unanticipated overdrafts. There are a number of tools available via the Account Management Information (AMI) application available through the FedLine® access solutions. Through AMI, you can view your real-time Daylight Overdraft Balance, view when transaction totals will be applied to your account in accordance with Payments System Risk posting rules and view daylight overdraft posting times associated with individual transactions.

We encourage you to share this information with others in your organization who may be impacted by these changes. This could include Accounting, Treasury Management, and Risk Monitoring staff, among others. If you use a processor, we encourage you to share this with them as well.

If you have any questions, please contact the following:

  • Accounting questions can be directed to your District’s Account Service contact
  • ACH questions can be directed to FedACH Customer Support at (866) 234-5681
  • Check questions can be directed to Check Customer Support at (877) 372-2457
  • Federal Reserve Policy on Payment System Risk changes can be directed to your local Credit and Risk Management contact

Announcement

On December 1, 2014 (Off-site Link), the Board of Governors of the Federal Reserve System announced changes to Part II of the Federal Reserve Policy on Payment System Risk. These changes are designed to enhance the efficiency of the payment system, to align posting times with current operations and processing times and to strategically position the rules for future advancements in the speed of clearing and settlement. These changes will become effective July 23, 2015. Review the summary of changes (PDF) for more information.

 

Reminder - The Federal Reserve Banks’ E-Payments Routing Directory moved to a new location in February 2015

May 15, 2015

The Federal Reserve Banks’ E-Payments Routing Directory was modified February 22, 2015 with changes to the location of some of the directory’s individual functions.

If you access the directory from the directory service’s home page, there was no change to your navigation path.

However, if you had set up bookmarks to any of the directory’s individual functions that resided on the previous fededirectory.frb.org locations, then your bookmarks most likely needed to be updated. You can go to the directory’s home page to find and bookmark the current locations.

If you have any questions, please contact the Customer Contact Center.

 

Fedwire® Services

Reminder - Fedwire® and National Settlement Services: Customer testing schedule information

May 15, 2015

The next phase of the Federal Reserve Banks’ multiyear effort aimed at modernizing the core processing and settlement functionality for the wholesale services will include system changes and a software release for the Fedwire Securities Service. Neither the changes nor the release will be visible to customers or their service providers.

However, the depository institution testing (DIT) environment, which supports all three wholesale services — the Fedwire Securities Service, the Fedwire Funds Service, and the National Settlement Service — will need to be closed for all three services starting at 4:00 p.m. ET on Friday, May 29, 2015 through Monday, June 8, 2015 in order to move changes into the DIT.  During this period, the DIT will not be available for customer testing for any of these services. The DIT will be reopened for customer testing for all three services on Tuesday, June 9, 2015.

Reminder

The depository institution testing (DIT) environment, which supports the Fedwire Securities Service, the Fedwire Funds Service and the National Settlement Service, will need to be closed for all three services starting at 4:00 p.m. ET on Friday, May 29, 2015 through Monday, June 8, 2015 to facilitate system changes and a software release for the Fedwire Securities Service.

 

Reminder - The Federal Reserve Banks’ E-Payments Routing Directory moved to a new location in February 2015

May 15, 2015

The Federal Reserve Banks’ E-Payments Routing Directory was modified February 22, 2015 with changes to the location of some of the directory’s individual functions.

If you access the directory from the directory service’s home page, there was no change to your navigation path.

However, if you had set up bookmarks to any of the directory’s individual functions that resided on the previous fededirectory.frb.org locations, then your bookmarks most likely needed to be updated. You can go to the directory’s home page to find and bookmark the current locations.

If you have any questions, please contact the Customer Contact Center.

 

Treasury Services

Register to attend this year’s eCommerce Initiatives Forum

May 15, 2015

Sponsored by the Federal Reserve Bank of Cleveland on behalf of the U.S. Department of the Treasury, Bureau of the Fiscal Service, this year’s eCommerce Initiatives Forum will offer an insider's look into the U.S. Treasury’s vision for an all-electronic revenue collections system.

The event will take place on June 4, from 1:30-4:30 p.m., and will spotlight the significant business opportunities existing today, feature speakers from the Treasury and provide a platform for an energetic dialogue where attendees will have the opportunity to influence the future of payment technologies.

For more information and to register, visit the conference website (Off-site Link).

Effective Date

June 4, 2015
eCommerce Initiatives Forum 2015 will take place in Baltimore, MD. For more information, visit the conference website (Off-site Link).

 

GO BACK

FedFlash is your source for the latest Federal Reserve Financial Services operational news. Each bulletin keeps you informed of issues critical to your day-to-day operations, providing you with National and District updates regarding our products and services, processes, technical protocols and contact information.