Automated Clearing House Items
September 18, 1997
Circular No. 10982

Extension of "Regular" Billing Deposit Deadline

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced a five-hour extension of the Federal Reserve Banks' automated clearing house (ACH) "regular" billing deposit deadline. ACH operates 24 hours a day.

Effective October 1, 1997, the "regular" processing window will begin at 3:00 a.m. Eastern Time and close at 1:00 a.m. rather than 8:00 p.m. The fees assessed to Federal Reserve Bank customers during this "regular" billing period are: (a) for files of up to 2,500 transactions - 0.9 cents per transaction plus a $1.75 file fee; (b) for files of over 2,500 transactions - 0.7 cents per transaction plus a $6.75 file fee.

The new "premium" hours will be between 1:00 a.m. and 3:00 a.m. Eastern Time, and the transaction surcharge assessed during this period will remain 0.5 cents on each ACH item deposited with the Reserve Banks.

The change will reduce fees charged to customers originating ACH transactions by approximately $2.1 million annually. This is the fourth time the Federal Reserve has reduced its ACH fees in the past twelve months. These price reductions reflect the efficiencies the Federal Reserve is realizing from its centralized ACH processing environment.

Questions on this matter may be directed, at this Bank, to Gerald V. Lombardo, Electronic Payment Officer.