FedACH^® Receipt Discount Program

The Reserve Banks are offering a five-year FedACH discount program¹ (the “Program”) for eligible FedACH customers that enroll (“Participants”). Participants will be eligible if they receive at least 1 million items per month through the FedACH service and qualify as a FedACH premium receiver (“Premium Receiver”).² Participation in the Program entitles customers to the following benefits:

Financial institutions with more than 30 million FedACH receipt items per month

• $0.0002 per item discount on all forward receipt items received through FedACH for the full 5-year length of the agreement
• 50% discount on the FedPayments^® Reporter (FPR) service for FedACH for 2 years at any point during their participation in the program
• 100% discount on the FedACH Exception Resolution Service for 2 years at any point during their participation in the program
• 100% discount on the FedPayments^® Insights (FPI) service for 2 years at any point during their participation in the program

Financial institutions with between 1 million and 30 million FedACH receipt items per month

• $0.0001 per item discount on all forward receipt items received through FedACH for the full 5-year length of the agreement
• 25% discount on the FedPayments Reporter (FPR) service for FedACH for 2 years at any point during their participation in the program
• 50% discount on the FedACH Exception Resolution Service for 2 years at any point during their participation in the program
• 50% discount on the FedPayments Insights (FPI) service for 2 years at any point during their participation in the program

These discounts will be applied to the prices listed on the Reserve Banks’ fee schedules, including the FedACH fee schedule, that would otherwise apply to a Participant’s use of Federal Reserve financial services. Although the Reserve Banks will apply these discounts to fees charged over the course of a 5-year term following a Participant’s enrollment,³ these amounts are recoverable by the Reserve Banks unless the Participant remains eligible and enrolled for the duration of the Program. If during a 5-year term a Participant becomes ineligible for or unenrolls in the Program for any reason, the Participant will no longer receive discounts under the Program and the Reserve Banks may require the Participant to refund an amount equal to the discounts accumulated by the Participant to the point the Participant became ineligible or unenrolled in the Program.⁴

In order to enroll in the Program, Participants must complete Part 9 of the FedACH Participation Agreement and select “Enroll” in Section 3 thereof. Participants are not permitted to enroll in the Program more than once.⁵

The Reserve Banks may cease offering the Program to new enrollees at any time. Participants already enrolled at the time the Reserve Banks cease offering the Program will have the opportunity to complete their 5-year term, which will remain subject to the requirements of the Program outlined in Operating Circular No. 4, the Federal Reserve fee schedules, and this product sheet.

Footnotes

1. This program is governed by this product sheet, the Federal Reserve’s published fee schedules, and the Reserve Banks’ Operating Circular No. 4, including its Appendix J. This product sheet and the Federal Reserve’s public fee schedules are considered “Program Documents” for the purposes of purposes of Operating Circular No. 4. ↩︎
2. A Premium Receiver is a financial institution that, as a receiving depository financial institution (“RDFI”), (i) receives through the FedACH service at least 90% of its receipt items that were originated by originating depository financial institutions (each, an “ODFI”) using the FedACH service (such Premium Receiver, a “Level One Premium Receiver”), or (ii) receives through the FedACH service at least 90% of its total receipt items (i.e., regardless of whether the ODFI originated the items using the FedACH service or a private-sector operator) (such Premium Receiver, a “Level Two Premium Receiver”). ↩︎
3. In administering the Program, the Reserve Banks will charge Participants as they would any other customer and will initiate adjusting entries to credit the Participant for the amount of an applicable discount. ↩︎
4. Under Operating Circular No. 4, the Participant authorizes the Reserve Banks to seek reimbursement of these amounts by debiting its master account or the master account of its correspondent bank. ↩︎
5. A Participant may not re-enroll if its participation terminates, including if the Participant withdraws, becomes ineligible or its 5-year term expires. ↩︎

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