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Falling Prices Make Now a Good Time for ACH Origination

ACH Rule Changes in Store Before Year 2000

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Falling Prices Make Now a Good Time for ACH Origination

If you've been thinking about beginning ACH origination services, or are simply trying to boost your institution's ACH volume, now is the perfect time.

Not only are Direct Deposit and Direct Payment consumer campaigns in full swing throughout the Eighth District (see related article in this issue) and across the country, but the price of providing ACH services to your customers has become less expensive.

This past August, the Fed decreased fees for its ACH origination services, almost five months earlier than typical price changes. This price deduction is one in a series during the past few years that are due to ongoing growth in ACH and efficiencies of the Fed's consolidated processing environment.

Under the new fee structure, we reduced the cost to originate forwards and returns by $.0005, an average of 7.7 percent lower than previous prices. Files with fewer than 2,500 items have a $.0065 per-item fee; files containing 2,500 items or more cost $.0055 per item. There is no change in the cost for receiving ACH transactions, which is still $.007 per item. We hope these price decreases will provide financial institutions with an incentive to grow their ACH origination volume.

Although we're still a long way from eliminating the check, every year consumers become more comfortable using electronic payment methods. This increasing comfort level, coupled with a heightened focus on consumer marketing, should prompt more requests for ACH services. Lower origination fees will help you more efficiently provide these services, enabling you to meet customer needs and save time and money at your own organization. It's a win-win situation for everyone.

You can direct questions on ACH fees to Cheryl McCarthy in St. Louis at (314) 444-8459. For more information regarding Direct Deposit and Direct Payment, visit the web site, www.directdeposit.org. Details on the District's local Partnership campaign can be found at www.appartnership.org.