[Federal Register Volume 88, Number 222 (Monday, November 20, 2023)]
[Proposed Rules]
[Pages 80653-80655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25628]


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POSTAL SERVICE

39 CFR Part 501


Authorization To Manufacture and Distribute Postage Evidencing 
Systems

AGENCY: Postal Service<SUP>TM</SUP>.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is amending its Postage Evidencing Systems 
regulations to ensure compliance for Automated Clearinghouse or ACH 
payment transactions and to clarify obligations related to all 
payments. These changes require the applicable resetting company (RC) 
and PC Postage provider to comply with the latest NACHA rules published 
by the North American Clearing House Association for ACH transactions. 
These responsibilities include providing a written statement signed by 
an executive officer of the

[[Page 80654]]

company attesting to that compliance at least annually. These changes 
also require the applicable RC and PC Postage provider to obtain and 
store an agreement with each customer utilizing ACH debit as a payment 
method. Failure to comply may result in revocation of access to 
applicable Postal Service ACH programs.

DATES: Comments must be received on or before December 20, 2023.

ADDRESSES: Mail or deliver comments to the Banking Manager, United 
States Postal Service, 475 L'Enfant Plaza SW, RM. 8134, Washington, DC 
20260. You may inspect and photocopy all written comments at 
USPS[supreg] Headquarters Library, 475 L'Enfant Plaza SW, 11th Floor N, 
Washington, DC by appointment only between the hours of 9 a.m. and 4 
p.m., Monday through Friday by calling 1-202-268-2906 in advance. Email 
comments, containing the name and address of the commenter, to: 
<a href="/cdn-cgi/l/email-protection#adfdeeebc8c9c8dfccc1ffc8cac4ded9c8dfedd8deddde83cac2db"><span class="__cf_email__" data-cfemail="49190a0f2c2d2c3b28251b2c2e203a3d2c3b093c3a393a672e263f">[email protected]</span></a>, with a subject line of ``[Date], 
Authorization to Manufacture and Distribute Postage Evidencing 
Systems.'' Faxed comments are not accepted. All submitted comments and 
attachments are part of the public record and subject to disclosure. Do 
not enclose any material in your comments that you consider to be 
confidential or inappropriate for public disclosure.

FOR FURTHER INFORMATION CONTACT: Douglas Graham, Banking Manager, 
United States Postal Service, 475 L'Enfant Plaza SW, RM. 8134, 
Washington, DC 20260, (202) 268-2188.

SUPPLEMENTARY INFORMATION: In accordance with 39 U.S.C. 416(e)(2), the 
Postal Service invites public comment on the following proposed 
amendments to the Code of Federal Regulations.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure, Postal Service.

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
EVIDENCING SYSTEMS

0
1. The authority citation for part 501 continues to read as follows:

    Authority:  5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 
2601, 2605; Inspector General Act of 1978, as amended (Pub. L. 95-
452, as amended); 5 U.S.C. App. 3.

0
2. Amend Sec.  501.15 by revising paragraph (g) to read as follows:


Sec.  501.15   Computerized Meter Resetting System.

* * * * *
    (g) The RC must reimburse the Postal Service for returned payments 
promptly, comply with NACHA rules, and maintain customer ACH debit 
agreements.
    (1) Financial responsibility for returned payments. The RC is 
required to reimburse the Postal Service upon request for any returned 
payments. The RC must, upon first becoming aware of a returned payment, 
immediately lock the customer's CMRS account to prevent a meter reset 
until the RC receives confirmation of payment for the returned payment. 
If a fee, penalty or fine is assessed against the Postal Service for 
returned payments from an RC's customer, the Postal Service may request 
reimbursement for such fee, penalty or fine from the RC. The RC is 
required to remit the amount of the returned payment to the Postal 
Service plus the reimbursement request, to the extent applicable, 
within ten (10) banking days. Invoices will be created monthly for 
returns and/or applicable penalties or fines incurred for the previous 
month. The ten (10) banking days will start once the invoice is mailed. 
The RC has discretion to decide whether to charge its customer for any 
such reimbursement costs (of fees, penalties, or fines) the RC pays to 
the Postal Service in connection with the customer's returned payment.
    (2) Responsibility to comply with NACHA rules. The RC is required 
to comply with the latest NACHA rules published by the North American 
Clearing House Association. Each RC must provide a written statement 
signed by an executive officer of the company attesting to that 
compliance at least annually. If the RC cannot provide that written 
statement attesting to compliance due to identified areas of non-
compliance, the RC must provide to the USPS within 30 days a written 
plan describing its prioritized approach, including milestone dates, 
toward achieving compliance within a mutually agreed period. USPS will 
provide specific written guidance separately if requested. Failure to 
comply may result in revocation of access to applicable USPS ACH 
programs.
    (3) Responsibility to maintain customer ACH agreements. The RC must 
obtain and store an agreement with each and every customer utilizing 
ACH debit as a payment method. The customer agreement must authorize 
the RC to debit the designated bank account identified to pay for 
postage through the USPS account of its choice. The agreement must have 
at least the following elements: Company Name (if applicable), Name and 
Title and Address of the person entering into the agreement, Contact 
Information (Phone Number, Fax Number and eMail Address as applicable), 
Date and Signature (or appropriate electronic signature evidence) of 
Agreement, Customer's Bank Name and Address, Bank Routing Number, 
Account Number and Account Type (Checking or Savings, Business or 
Personal) being agreed to transact upon, an Attestation that the person 
submitting the form is authorized to act on behalf of the account, and 
Termination Date and Signature (or appropriate electronic signature 
evidence) of the Agreement (if applicable). The agreement must be 
stored for at least two years after termination of the agreement, must 
be easily reproducible, and must be provided electronically to the 
Postal Service within three business days of electronic written request 
by the Postal Service in a format that can be easily and readily used 
for all NACHA and ACH related purposes including, without limitation, 
audit and defense of claims. USPS will provide specific written 
guidance separately if requested. Failure to comply may result in 
revocation of access to applicable Postal Service ACH programs.
* * * * *
0
3. Amend Sec.  501.16 by revising paragraph (d) to read as follows:


Sec.  501.16   PC postage payment methodology.

* * * * *
    (d) The provider must reimburse the Postal Service for returned 
payments promptly, comply with NACHA rules, and maintain customer ACH 
agreements.
    (1) Financial responsibility for returned payments. The provider 
must reimburse the Postal Service upon request for any returned 
payments. The provider must, upon first becoming aware of a returned 
payment, immediately lock the customer account to prevent resetting the 
account until the provider receives confirmation of payment for the 
returned payment. If a fee, penalty or fine is assessed against the 
Postal Service for returned payments from a provider's customer, the 
Postal Service may request reimbursement for such fee, penalty or fine 
from the provider. The provider is required to remit the amount of the 
returned payment plus the amount of the reimbursement request, to the 
extent applicable, to the Postal Service within ten (10) banking days. 
Invoices will be created monthly for returns and/or applicable 
penalties or fines incurred for the previous month. The ten (10) 
banking days will start once the invoice is mailed. The provider has 
discretion to decide whether to charge its customer for any such 
reimbursement costs (of

[[Page 80655]]

fees, penalties or fines) the provider pays to the Postal Service in 
connection with the customer's returned payment.
    (2) Responsibility to comply with NACHA rules. The provider is 
required to comply with the latest NACHA rules published by the North 
American Clearing House Association. Each provider must provide a 
written statement signed by an executive officer of the company 
attesting to that compliance at least annually. If the provider cannot 
provide that written statement attesting to compliance due to 
identified areas of non-compliance, the PC provider must provide to the 
Postal Service within 30 days a written plan describing its prioritized 
approach, including milestone dates, toward achieving compliance within 
a mutually agreed period. The Postal Service will provide specific 
written guidance separately if requested. Failure to comply may result 
in revocation of access to applicable Postal Service ACH programs.
    (3) Responsibility to maintain customer ACH agreements. The 
provider must obtain and store an agreement with each and every 
customer utilizing ACH debit as a payment method. The customer 
agreement must authorize the provider to debit the designated bank 
account identified to pay for postage through the Postal Service 
account of its choice. The agreement must have at least the following 
elements: Company Name (if applicable), Name and Title and Address of 
the person entering into the agreement, Contact Information (Phone 
Number, Fax Number and eMail Address as applicable), Date and Signature 
(or appropriate electronic signature evidence) of Agreement, Customer's 
Bank Name and Address, Bank Routing Number, Account Number and Account 
Type (Checking or Savings, Business or Personal) being agreed to 
transact upon, an Attestation that the person submitting the form is 
authorized to act on behalf of the account, and Termination Date and 
Signature (or appropriate electronic signature evidence) of the 
Agreement (if applicable). The agreement must be stored for at least 
two years after termination of the agreement, must be easily 
reproducible, and must be provided electronically to the Postal Service 
within three business days of electronic written request by the Postal 
Service in a format that can be easily and readily used for all NACHA 
and ACH related purposes including, without limitation, audit and 
defense of claims. The Postal Service will provide specific written 
guidance separately if requested. Failure to comply may result in 
revocation of access to applicable Postal Service ACH programs.
    (4) Credit cards. Unless otherwise established in a written 
agreement between the Postal Service and the provider, the provider is 
fully responsible for its own credit card compliance.
* * * * *

Sarah Sullivan,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2023-25628 Filed 11-17-23; 8:45 am]
BILLING CODE 7710-12-P


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