Attention required: Updated file specifications now available for Check Adjustment Services updates in early 2022

Please read the following notice carefully as your institution has a high likelihood of being impacted by the changes discussed. Please share this information with your technical support staff. If your institution uses an agent, processor, or service provider for Check Adjustment Services, please ensure this information is shared with them.

As previously communicated in August 2021, we will streamline the processing of Check Adjustments by introducing greater efficiency with investigation types (ITYP) functionality on March 20, 2022.

In preparation for these improvements, Check Adjustments Subscribers will be required to make technical code changes to send and/or receive files. It is critical that your institution, as well as your agent, processor, or service provider (if applicable), prepare technical resources for these upcoming changes. Customer testing opportunities will be shared in early 2022.

Additional information on the upcoming changes is listed below:

1. New case investigation type (ITYP) – Wrong Payee Credited (WPC)
   To help drive efficiencies throughout the industry’s check collection process, we will add a new case type, Wrong Payee Credited (WPC), to provide the bank of first deposit (BOFD) an option to submit an adjustment case to the Federal Reserve Banks and receive a debit entry. Using the WPC ITYP will be a more efficient and timely way to correct these payment errors, and institutions will no longer need to deal directly with one another. Financial Institutions submitting WPC cases with incorrect or incomplete information will be subject to a quality fee. For more information on quality fees, see the 2021 Electronic Check Collection Fee Schedule page on FRBservices.org^®.
2. Streamlined the functionality of submitting and receiving Remote Deposit Capture (RDC) Item, Unauthorized Electronically Created Item (UECI) and Unauthorized Remotely Created Check (URCC) ITYPS
   Currently, Check Adjustments subscribers use the Warranty/Indemnity Claim (WIC) ITYP to submit these cases and include a note in the comments (COM1) to indicate they are submitting an RDC, UECI or URCC. After these changes are implemented, Subscribers will be able to directly submit and receive these case types using the applicable ITYP. As previously noted, technical code changes will be required in some case as detailed below.
   • Entry via FedLine^®: Subscribers will be able to select the RDC, UECI, URCC and WPC case types from the Case Investigation Type (ITYP) dropdown in the ‘Create Message’ screen. No technical changes are required for customers to use these new case types via the ‘Create Message’ screen in FedLine.
   • Receipt via FedLine: Subscribers will see the RDC, UECI, URCC and WPC case types in their ‘Inbox’ if sent by another Subscriber. No technical changes are required for Subscribers to view these new case types in FedLine.
   • Entry via TXT or JSON file: Subscribers will be able to upload files containing the RDC, UECI, URCC and WPC case types. Technical changes are required to create files with these case types.
   • Download/Export of TXT, JSON, DOCX and CSV file: Subscribers may receive RDC, UECI, URCC and WPC cases from other Subscribers in their file. If a Subscriber loads a file from the Federal Reserve with a new case type into their own internal system and that system is not updated to accept these new ITYPs, file errors could occur. Technical changes may be required for Subscribers to accept these case types.
   • Receipt via FedMail^®: No technical changes necessary. RDC, UECI, URCC and WPC case types will be sent via FedMail.
   The Check Adjustments Automated Status Report will also reflect the unique ‘Expected New Action’ dates for each ITYP as follows:
   • RDC = 20 business days
   • UECI = 20 business days
   • URCC = 5 business days
   • WIC = 80 business days
3. BOFD information provided on Paid Item (PAID) and Source of Receipt (SOR) cases
   To reduce the work required when submitting an RDC, the BOFD information will be provided proactively on PAID and SOR cases.
   • BOFD information for 'the other item,' required to submit an RDC, will be provided automatically on PAID cases when the From Cash Letter ABA (FCL) and Other Item From Cash Letter ABA (FCL1) are different.
   • BOFD information will be provided automatically on SOR cases. After March 20, 2022, Check Adjustments Subscribers should submit a SOR instead of an Information Request (INFO) when BOFD information is needed.
   • Information provided will include BOFD ABA, sequence number, and cash letter date.
4. Contact information for the case sender will be provided to Subscribers
   The comments section of Paid Item (PAID), Non-Cash Item (NCH), Non-Confirming Item (NCI) and Late Return Disclaimer (LR) case types will include the following information from the institution that submitted the case:
   • Sender ABA (SNDR)
   • Contact Name (CNTC)
   • Contact Phone Number (TELE)
   • Sender Reference Number (SREF)
   Contact information will only be provided for FedForward^® and FedReturn^® Services. Institutions that want inquires to be sent to one central phone number should include that phone number when submitting the case.
5. Changes to the Reclamation (RCLM) ITYP
   The Reclamation (RCLM) ITYP will be expanded in 2022. In preparation for these changes, updates are required to the file specifications for RCLM by March 20, 2022 but will not impact how the RCLM ITYP is currently used.

Resources

The updated file specifications for both TXT and JSON file types are available for Check Adjustments Subscribers to use within FedLine Home Training > Resources > Check under ‘Check Adjustments Technical and Testing Documentation’. The updated documents’ titles end with “for 2022,” and changes are detailed in the TXT and JSON file specifications ‘Document Change History’ section at the end of each document.

Questions

If you have questions regarding these changes, please contact FedACH^® and Check Services Customer Support.

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