Take Me Out to the Ball Game...and Promote Electronic Payments!

The Federal Reserve Bank has joined with Mid-America Payment Exchange (MPX) to promote electronic payments in a unique new way. All summer long, a Direct Deposit and Direct Payment ad will run in the program of the River City Rascals, a minor league baseball team in O'Fallon, Mo. A banner will also hang near the Rascals' bullpen, and during the July 25 game, Fed and MPX representatives will participate in the evening's activities, including singing the national anthem and throwing out the first pitch.

Five other cities are also hosting promotional events at minor league baseball games, all sponsored by the Direct Deposit and Direct Payment Coalition.

Dishonored Returns to Go through ACH

The U.S. Treasury has announced that it will begin the first phase of processing dishonored returns through the Automated Clearing House (ACH) in July. This new process, which is targeted for completion by year-end, supports the Treasury's initiative to move from paper-based systems to electronic systems.

Currently, when the Treasury dishonors a return (that is, a returned government benefit payment) from your financial institution, the Fed credits or debits your institution's (or your correspondent's) Federal Reserve account on behalf of the Treasury then mails supporting documentation to your institution. Settlement for these items appears as an "ACH Adjustment."

During this conversion period, your institution may receive a dishonored return item either through the ACH, or as a debit or credit. Processing of government reclamations will not change as a result of this conversion.

If you have any questions about this change, contact the Kansas City Regional Financial Center of the U.S. Treasury at (816) 414-2100. Questions regarding your institution's ACH processing or settlement should be directed to Cheryl Whitworth at (314) 444-8612 or Pat McNamara-Smith at (314) 444-8713, or toll-free at 1-800-333-0810.

FCA Program Discontinued

The Federal Reserve System will discontinue the Functional Cost and Profit Analysis (FCA) program after processing the current (1999) data.

In recent years, the Federal Reserve invested resources in FCA to update the analysis and make the reports more responsive to the changing needs of participants. Despite these efforts, the level of interest in the program was not sufficient to justify its continuation.

Although we regret that we must discontinue the FCA program, we anticipate the private sector will provide alternative services.

If you have any questions, call Dan Horton at (314) 444-8629 or toll-free at 1-800-333-0810.