Fed Shifts Y2K Plans
to Contingency

ACH Fees Reduced by Nearly 8 Percent

In August, the Federal Reserve reduced fees for its Automated Clearing House (ACH) origination services.

Under the new fee schedule, the cost to originate ACH forward and return transactions will be reduced by $.0005, an average of 7.7 percent. Customers who deposit files of fewer than 2,500 items will be assessed a per-item fee of $.0065. Customers who deposit files of more than 2,500 items will be assessed a per-item fee of $.0055. The cost to receive ACH transactions will remain at $.007 per item.

This fee decrease, coupled with the Direct Deposit and Direct Payment Coalition's national ACH promotion and education campaign, is expected to further encourage ACH growth and help broaden the use of electronic payment systems.

Questions regarding ACH fees should be directed to Cheryl McCarthy at (314) 444-8459. For information regarding the ACH promotion and education campaign, visit the coalition's web site at www.directdeposit.org.