Satisfy ACH Reclamations with Automated Debit Payments
December 5, 2017
For Automated Clearing House (ACH) reclamations, the Department of the Treasury's Bureau of the Fiscal Service now permits financial institutions to satisfy partial payments electronically. By paying for your Treasury ACH reclamations via authorizing an ACH debit against your Federal Reserve account, your financial institution can reduce expenses and receive improved service.
Below are several advantages gained by switching from physical checks to an automated process (authorizations):
- Reduced internal costs: The cost of processing a cashier’s check is avoided. With a cashier’s check you fill out a log, create a check and sign the check – each of these steps takes time, uses paper and requires balancing. An authorization to pay permits us to post a debit to your Federal Reserve account. A payment made by authorization will appear on your Reserve statement with an IAS transaction code of “57180 – Treasury ACH Reclamation FI Auth”. There will also be a reclamation tracking number listed, which will aid your institution in any type of research that you may need to perform.
- Improved turnaround time: Paying for a reclamation by check takes longer to process and close the reclamation. Debit authorizations are received the same day and are posted within two (2) to three (3) business days of receipt.
How to Authorize a Debit to Pay for an ACH Reclamation:
- When the FMS 133, Notice of Reclamation is received, the financial institution will continue to follow its current procedures as stated in the Green Book (Chapter 5, Section 3, Reclamation Procedures).
- Once all the certifications are signed and the account owner information is recorded, the financial institution will write in the dollar amount to be debited next to “B. Further Action” and then date the form (please see below).
- When the reclamation is completed, please use a secure email connection and email the form (front and back) to the Debit Authorization Email box at: email@example.com. For the subject line of the email use: “Debits for ACH Reclamations”.
If you do not have a secure email connection you will need to send your ACH Debit Authorization requests via fax to (215) 516-8201.
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