Later ACH Deadline Can Save You Money

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Effective Oct. 1, the St. Louis Fed will improve its ACH service by extending its regular billing deadline (previously called the premium surcharge deadline) from 8 p.m. to 1 a.m. ET.

The 0.5 cent per-item premium surcharge will stay the same; however, it will only be assessed for items received between 1 a.m. and 3 a.m. ET, the close-of-business deadline. This means you will be able to deposit items later than in the past and not pay a fee. We expect this change to save all ACH customers across the country a total of $2.1 million a year in fees.

This enhancement to our ACH service comes on the heels of several other price reductions and deadline extensions implemented in October 1996, January 1997 and May 1997. We have been able to offer these improvements now that all Reserve Banks have completed their conversion to Fed ACH, the new centralized ACH software.

For more information, contact Andy Lueckenhoff in St. Louis at (314) 444-8647.