Fees and Product Codes Decrease in 1998

---

Continuing the trend of the past three years, prices for the Federal Reserve's ACH service will decline again in 1998. Specifically, fees to originate and receive ACH items and addenda records will fall by 0.1 cents, and charges associated with the delivery of composite receiver file directories will be eliminated.

We also are lowering Fedwire fees. For the second year in a row, the origination and receipt fees for funds transfers will be reduced by five cents, bringing the cost down from 45 to 40 cents.

These price reductions are consistent with the Fed's long-term strategy to promote electronic payments, and they are predicted to save the banking industry $15.6 million in the upcoming year. We have been able to lower our fees because of greater operating efficiencies after converting our wire and ACH software to central processing sites for the Federal Reserve System.

Lower prices are not the only thing that will look different on your billing statement next year. In January, we will change several of our ACH product codes. Four new codes will separate value and nonvalue items. In addition, the commercial and government paper and voice response product codes will be combined into one code. These modifications will make it easier for you to read and reconcile your statements.

For a copy of our price book or more information, contact Cheryl Whitworth at (314) 444-8713.