82356 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

1Although the Monetary Control Act does not 

define ‘‘over the long run,’’ the Board has generally 

measured long-run cost recovery for mature services 

to be over a 10-year rolling time frame. The Board 

currently views a 10-year cost recovery expectation 

as appropriate for assessing mature services, which 

are those that have achieved a critical mass of 

customer participation and generally have stable 

and predictable volumes, costs, and revenues. The 

10-year recovery rate is based on the pro forma 

income statements for Federal Reserve priced 

services published in the Board’s Annual Report. In 

accordance with Accounting Standards Codification 

(ASC) 715 Compensation—Retirement Benefits, the 

Reserve Banks recognized a $590.0 million 

cumulative reduction in equity related to the priced 

services’ benefit plans through 2022. Including this 

cumulative reduction in equity from 2013 to 2022 

results in cost recovery of 103.8 percent for the 10- 

year period. This measure of long-run cost recovery 

is also published in the Board’s Annual Report. 

2 In alignment with the Board’s Principles for the 

Pricing of Federal Reserve Bank Services, the 

Reserve Banks will continue to assess the tradeoffs 

between price stability for customers, investment in 

technology infrastructure to reflect desirable longerrun improvements in the ACH system, and the 

expectation of achieving full cost recovery for the 

FedACH Service over the long run. See Board of 

Governors of the Federal Reserve System, 

‘‘Adoption of Fee Schedules and Pricing Principles 

for Federal Reserve Bank Services,’’ 46 FR 1338, 

1343 (Jan. 6, 1981). Available at https://cdn.loc.gov/ 

service/ll/fedreg/fr046/fr046003/fr046003.pdf. 

3Application of the 10-year rolling time frame 

used to evaluate mature services to the FedNow 

Service would result in prohibitively high or 

unnecessarily volatile pricing, negatively affecting 

the Federal Reserve’s public policy objectives in 

For pesticide specific information, 

contact: The Chemical Review Manager 

for the pesticide of interest identified in 

Table 1 in Unit IV. of the original notice 

(88 FR 71856, October 18, 2023 (FRL– 

11376–01–OCSPP)). 

For general information on the 

registration review program, contact: 

Melanie Biscoe, Pesticide Re-Evaluation 

Division (7508P), Office of Pesticide 

Programs, Environmental Protection 

Agency, 1200 Pennsylvania Ave. NW, 

Washington, DC 20460–0001; telephone 

number: (202) 566–0701; email address: 

biscoe.melanie@epa.gov. 

SUPPLEMENTARY INFORMATION: Pursuant 

to 40 CFR 155.58, EPA issued a notice 

in the Federal Register of October 18, 

2023 (88 FR 71856) (FRL–11376–01– 

OCSPP), to announce the availability of 

EPA’s interim registration review 

decisions for the following chemicals: 

Citric acid and salts, and linalool; and 

the closure of the registration review 

case for triadimenol. As described in 

that document, EPA previously sought 

public comment on the proposed 

interim registration review decisions as 

discussed in the pesticide specific 

interim decisions that were posted to 

the dockets. In addition, that notice 

announced the closure of the 

registration review case for triadimenol 

(Case Number 7008, Docket ID Number 

EPA–HQ–OPP–2016–0114) because the 

last U.S. registrations for this pesticide 

has been canceled. 

Subsequent to the publication of that 

notice, EPA identified that it incorrectly 

included a DATES section that 

established a comment deadline of 

December 18, 2023. A comment period 

is not necessary or appropriate for that 

document because the decisions 

announced in that document are 

complete. As a result, EPA is issuing 

this document to reaffirm the nature of 

the decisions announced in that 

document and to closing the comment 

period it incorrectly established. 

Background on the registration review 

program is provided at: https://

www.epa.gov/pesticide-reevaluation. 

Authority: 7 U.S.C. 136 et seq. 

Dated: November 20, 2023. 

Mary Elissa Reaves, 

Director, Pesticide Re-Evaluation Division, 

Office of Pesticide Programs. 

[FR Doc. 2023–25941 Filed 11–22–23; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL RESERVE SYSTEM 

[Docket No. OP–1822] 

Federal Reserve Bank Services 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Notification of 2024 private 

sector adjustment factor and fee 

schedules. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

approved the private-sector adjustment 

factor (PSAF) for 2024 of $29.2 million 

and the 2024 fee schedules for Federal 

Reserve priced services and electronic 

access. These actions were taken in 

accordance with the Monetary Control 

Act of 1980, which requires that, over 

the long run, fees for Federal Reserve 

priced services be established based on 

all direct and indirect costs, including 

the PSAF. 

DATES: The new fee schedules become 

effective January 2, 2024. 

FOR FURTHER INFORMATION CONTACT: For 

questions regarding the fee schedules: 

Ian Spear, Assistant Director, (202) 452– 

3959; Larkin Turman, Senior Financial 

Institution Policy Analyst, (202) 657– 

9306; Division of Reserve Bank 

Operations and Payment Systems. For 

questions regarding the PSAF: Rebecca 

Royer, Associate Director, (202) 736– 

5662; Kelsey Cassidy, Financial 

Institution Policy Analyst, (202) 465– 

6817; Division of Reserve Bank 

Operations and Payment Systems. For 

users of TTY–TRS, please call 711 from 

any telephone, anywhere in the United 

States. Copies of the 2024 fee schedules 

for the check services are available from 

the Board, the Federal Reserve Banks, or 

the Federal Reserve Financial Services 

(FRFS) website at www.FRBservices.org. 

SUPPLEMENTARY INFORMATION: 

I. Private-Sector Adjustment Factor, 

Priced Services Cost Recovery, and 

Overview of 2024 Price Changes 

A. Overview—Each year, as required 

by the Monetary Control Act (MCA) of 

1980, the Reserve Banks set fees for 

priced services provided to financial 

institutions. These fees are set to 

recover, over the long run, all direct and 

indirect costs and imputed costs, 

including financing costs, taxes, and 

certain other expenses, as well as the 

return on equity (profit) that would have 

been earned if a private-sector business 

provided the services.1 The imputed 

costs and imputed profit are collectively 

referred to as the private-sector 

adjustment factor (PSAF). 

From 2013 through 2022, the Reserve 

Banks recovered 102.5 percent of their 

total expenses (including imputed costs) 

and targeted after-tax profits or return 

on equity (ROE) for the mature services. 

During that period, Check Services, the 

Fedwire® Funds Service, National 

Settlement Service (NSS), and Fedwire®

Securities Service achieved full cost 

recovery. The FedACH® Service 

achieved 98.1 percent cost recovery as 

a result of the Reserve Banks’ 

development and implementation of a 

multiyear technology initiative to 

modernize the capabilities of the 

FedACH Service processing platform. 

Although the modernized platform was 

implemented in 2021, the Reserve 

Banks are continuing to invest in 

platform capabilities, as well as 

resiliency, as part of a broader 

enhancement strategy. At the same time, 

the Reserve Banks have made limited 

changes to existing FedACH Service fees 

to provide price stability for customers 

in alignment with pricing policies.2

The Board communicated in its 2019 

Notice Federal Reserve Actions to 

Support Interbank Settlement of Instant 

Payments (‘‘2019 Notice’’) that it 

expects the FedNow® Service to achieve 

its first instance of long-run cost 

recovery outside the 10-year time frame 

typically applied to mature services. 

New services like the FedNow Service 

may not initially have stable volumes, 

costs, and revenues.3 Thus, FedNow 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82357 

providing the service. See ‘‘Federal Reserve Actions 

to Support Interbank Settlement of Instant 

Payments,’’ 84 FR 39297, (August 9, 2019). 

Available at https://www.govinfo.gov/content/pkg/ 

FR-2019-08-09/pdf/2019-17027.pdf. 

4The FedNow Service launched in July 2023. 

Inclusive of the FedNow Service, the PSAF 

increases to $46.3 million for 2024. Per its 2019 

Notice ‘‘Federal Reserve Actions to Support 

Interbank Settlement of Faster Payments’’ (‘‘2019 

Notice’’), the Board has determined that it is most 

appropriate to report FedNow Service cost recovery 

independently of mature priced services until the 

service has relatively stable revenues and costs. 

Thus, FedNow Service revenue is excluded from 

overall performance projections for 2023. See 

‘‘Federal Reserve Actions to Support Interbank 

Settlement of Faster Payments,’’ 4 FR 39297, 

(August 9, 2019). Available here: Federal Register: 

Federal Reserve Actions To Support Interbank 

Settlement of Faster Payments. 

Service revenue and expenses are 

excluded from the overall performance 

projections. The FedNow Service is 

discussed in section G. 

Table 1 summarizes 2022 actual, 2023 

forecasted, and 2024 budgeted annual 

cost recovery rates for all mature priced 

services. Cost recovery is forecasted to 

be 104.4 percent in 2023 and forecasted 

to be 103.0 percent in 2024. 

TABLE 1—AGGREGATE MATURE PRICED SERVICES PRO FORMA COST AND REVENUE PERFORMANCE a

[Dollars in millions] 

Year Revenue Total expense Net income 

(ROE) Targeted ROE 

Recovery rate 

after targeted 

ROE 

(%) 

1 b 2 c 3 [1¥2] 4 d 5 e [1/(2 + 4)] 

2022 (actual) ........................................................................ 466.8 462.9 3.9 7.2 99.3 

2023 (forecast) ..................................................................... 504.9 475.5 29.4 8.3 104.4 

2024 (budget) ....................................................................... 501.4 477.0 24.4 9.7 103.0 

a Calculations in this table and subsequent pro forma cost and revenue tables may be affected by rounding. Excludes amounts related to the 

FedNow Service. b Revenue includes imputed income on investments when equity is imputed at a level that meets minimum capital requirements and, when 

combined with liabilities, exceeds total assets (attachment 1). For 2024, the projected revenue assumes implementation of the fee changes. cThe calculation of total expense includes operating, imputed, and other expenses. Imputed and other expenses include taxes, Board of Governors’ priced services expenses, the cost of float, and interest on imputed debt, if any. Credits or debits related to the accounting for pension 

plans under ASC 715 are also included. dTargeted ROE is the after-tax ROE included in the PSAF. 

eThe recovery rates in this and subsequent tables do not reflect the unamortized gains or losses that must be recognized in accordance with 

ASC 715. Future gains or losses, and their effect on cost recovery, cannot be projected. 

Table 2 provides an overview of cost 

recovery budgets, forecasts, and 

performance for the 10-year period from 

2013 to 2022, 2022 actual, 2023 budget, 

2023 forecast, and 2024 budget by 

mature priced service. 

TABLE 2—MATURE PRICED SERVICES COST RECOVERY

[Percent] 

Priced service 2013–2022 2022 Actual 2023 Budget a 2023 Forecast 2024 Budget b

All mature services .............................................................. 102.5 99.3 98.2 104.4 103.0 

Check ................................................................................... 108.4 99.8 96.7 101.2 95.4 

FedACH ............................................................................... 98.1 101.7 99.0 105.9 105.8 

Fedwire Funds and NSS ..................................................... 101.5 95.3 96.2 101.3 103.2 

Fedwire Securities ............................................................... 103.1 107.6 106.5 118.9 110.9 

aThe 2023 budget figures reflect the final budgets as approved by the Board of Governors in December 2022. See Board of Governors of the 

Federal Reserve System, ‘‘2023 Federal Reserve Banks Budgets’’ available at https://www.federalreserve.gov/foia/files/2023ReserveBankBudgets.pdf. bThe 2024 budget figures reflect preliminary budget information from the Reserve Banks. The Reserve Banks will submit final budget data to 

the Board for consideration by December 2023. 

1. 2023 Forecasted Performance—The 

Reserve Banks forecast that they will 

recover 104.4 percent of the costs of 

providing mature priced services in 

2023, including total expense and 

targeted ROE, compared with a 2023 

budgeted recovery rate of 98.2 percent, 

as shown in Table 2. Overall, the 

Reserve Banks forecast that they will 

fully recover actual and imputed costs 

and earn net income of $29.4 million, 

compared with the targeted ROE of $8.3 

million. The Reserve Banks forecast that 

all services will achieve full cost 

recovery in 2023. 

2. 2024 Private-Sector Adjustment 

Factor—The 2024 PSAF for Reserve 

Bank mature priced services is $29.2 

million.4 This amount represents an 

increase of $5.5 million from the 2023 

PSAF of $23.7 million. This increase is 

attributable to a $6.1 million increase in 

the cost of capital primarily driven by 

rising interest rates, and a $0.8 million 

increase in Board of Governors 

expenses, offset by a $1.4 million 

decrease in sales tax. 

3. 2024 Projected Performance—The 

Reserve Banks project a mature priced 

services cost recovery rate of 103.0 

percent in 2024, with a net gain of $24.4 

million and targeted ROE of $9.7 

million. The Reserve Banks project that 

each of the individual service lines will 

achieve full cost recovery in 2024 

except for Check Services. Check 

Services are expected to under recover 

primarily because of anticipated volume 

declines. The Reserve Banks’ primary 

risks to current projections are 

unanticipated volume and revenue 

reductions and the potential for cost 

overruns from new and ongoing 

improvement initiatives. 

4. 2024 Pricing—The following 

summarizes the Reserve Banks’ changes 


ddrumheller on DSK120RN23PROD with NOTICES1
82358 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

5See Federal Register Notice for Federal Reserve 

Bank Services (December 12, 2022). Available here: 

Federal Register:: Federal Reserve Bank Services 

6 Data for U.S. publicly traded firms is from the 

Standard and Poor’s Compustat® database. This 

database contains information on more than 6,000 

U.S. publicly traded firms, which approximates 

information for the entirety of the U.S. market. 

7The pension assets are netted with the pension 

liabilities and reported as a net asset or net liability 

as required by ASC 715 Compensation—Retirement 

Benefits. 

8The FDIC rule, which was adopted as final on 

April 14, 2014, requires that well-capitalized 

institutions meet or exceed the following standards: 

(1) total capital to risk-weighted assets ratio of at 

least 10 percent, (2) tier 1 capital to risk-weighted 

assets ratio of at least 8 percent, (3) common equity 

tier 1 capital to risk-weighted assets ratio of at least 

6.5 percent, and (4) a leverage ratio (tier 1 capital 

to total assets) of at least 5 percent. Because all of 

the Federal Reserve priced services’ equity on the 

pro forma balance sheet qualifies as tier 1 capital, 

only requirements 1 and 4 are binding. The FDIC 

rule can be located at 12 CFR 324.403(b). 

to fee schedules for priced services in 

2024: 

Check Services 

The Reserve Banks will increase 

participation fees and Reject Repair fees 

and reduce fixed fees across image cash 

letter options. The Reserve Banks will 

additionally replace their existing 5:00 

a.m. eastern time (ET) and 9:30 a.m. ET 

forward check deposit deadlines with a 

single consolidated deadline at 7:30 

a.m. ET. The Reserve Banks will 

reassign their customers across new 

volume tiers based on recent actual 

levels, a process they perform every 

year. These changes will help address 

declining check volumes and continue a 

value-based pricing strategy for 

financial institutions. 

FedACH Service 

The Reserve Banks will increase the 

FedACH settlement fee for some 

customers and introduce a new FedACH 

receipt 5-year discount program for 

customers with Premium Receiver 

status. These changes will help address 

ongoing operational costs while also 

providing incentives for customers who 

handle high volumes of FedACH 

receipts. 

Fedwire Funds Service 

The Reserve Banks will increase the 

Fedwire Funds transfer price for all 

three tiers, the participation fee, and the 

FedPayments® Manager Import/Export 

fee. These changes will help address 

costs stemming from ongoing customer 

enhancement projects and will increase 

overall fixed fee revenue. 

National Settlement Service 

The Reserve Banks will increase the 

National Settlement Service pre-file and 

pre-entry fees. These changes will help 

address rising operational costs. 

Fedwire Securities Service 

The Reserve Banks will maintain 

prices at existing levels for all priced 

Fedwire Securities Service products. 

FedNow Service 

The Reserve Banks will maintain the 

previous year’s fee schedule, inclusive 

of discounts to the monthly 

participation fee as well as for customer 

credit transfers under a threshold of 

2,500 per month.5 These discounts will 

support financial institution testing and 

validation of 24x7 instant payments 

processing capabilities. Additionally, to 

support initial onboarding, the Reserve 

Banks will continue to discount certain 

FedLine® Solutions fees. New FedLine 

Advantage® channel connections or 

upgrades from existing FedLine 

Solutions to FedLine Advantage will be 

discounted to $0.00 for a rolling 12- 

month period following initiation. 

FedLine Solutions 

The Reserve Banks will increase the 

monthly fees for FedMail®, the FedMail 

Email a` la carte option, and all 

electronic access service offered by 

Accounting Information Services. The 

Reserve Banks will also introduce a new 

FedLine Web® pricing tier called 

FedLine Web Premier to reflect the 

value-add service of check payment 

automation. These changes will help 

address the rising operating costs for 

attended access and extended support 

for the FedNow Service. 

For the mature services, these changes 

collectively are an average price 

increase of 1.8 percent. The price 

changes are in line with the Reserve 

Banks’ strategy to offset rising costs, 

diversify revenue sources, and continue 

to reduce pricing volatility associated 

with volume-based pricing. For the 

FedNow Service, the Reserve Banks 

continue to focus on adoption and 

achieving network effects as a new 

service. 

B. Private-Sector Adjustment Factor— 

The imputed debt financing costs, 

targeted ROE, and effective tax rate are 

based on a U.S. publicly traded market 

model.6 The method for calculating the 

financing costs in the PSAF requires 

determining the appropriate imputed 

levels of debt and equity and then 

applying the applicable financing rates. 

In this process, a pro forma balance 

sheet using estimated assets and 

liabilities associated with the Reserve 

Banks’ priced services is developed, and 

the remaining elements that would exist 

are imputed as if these priced services 

were provided by a private business 

firm. The same generally accepted 

accounting principles that apply to 

commercial-entity financial statements 

apply to the relevant elements in the 

priced services pro forma financial 

statements. 

The portion of Federal Reserve assets 

that will be used to provide priced 

services during the coming year is 

determined using information about 

actual assets and projected disposals 

and acquisitions. The priced portion of 

these assets is determined based on the 

allocation of depreciation and 

amortization expenses of each asset 

class. The priced portion of actual 

Federal Reserve liabilities consists of 

post-employment and post-retirement 

benefits, accounts payable, and other 

liabilities. The priced portion of the 

actual net pension asset or liability is 

also included on the balance sheet.7

The equity financing rate is the 

targeted ROE produced by the capital 

asset pricing model (CAPM). In the 

CAPM, the required rate of return on a 

firm’s equity is equal to the return on a 

risk-free asset plus a market risk 

premium. The risk-free rate is based on 

the three-month Treasury bill; the beta 

is assumed to be equal to 1.0, which 

approximates the risk of the market as 

a whole; and the market risk premium 

is based on the monthly returns in 

excess of the risk-free rate over the most 

recent 40 years. The resulting ROE 

reflects the return a shareholder would 

expect when investing in a private 

business firm. 

For simplicity, given that federal 

corporate income tax rates are 

graduated, state income tax rates vary, 

and various credits and deductions can 

apply, an actual income tax expense is 

not explicitly calculated for Reserve 

Bank priced services. Instead, the Board 

targets a pretax ROE that would provide 

sufficient income to fulfill the priced 

services’ imputed income tax 

obligations. To the extent that 

performance results are greater or less 

than the targeted ROE, income taxes are 

adjusted using the effective tax rate. 

Capital structure. The capital 

structure is imputed based on the 

imputed funding need (assets less 

liabilities), subject to minimum equity 

constraints. Short-term debt is imputed 

to fund the imputed short-term funding 

need. Long-term debt and equity are 

imputed to meet the priced services 

long-term funding need at a ratio based 

on the capital structure of the U.S. 

publicly traded market.8 Any equity 

imputed that exceeds the amount 

needed to fund the priced services’ 

assets and meet the minimum equity 

constraints is offset by a reduction in 

imputed long-term debt. When imputed 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82359 

9Principles for Financial Market Infrastructures, 

https://www.bis.org/cpmi/publ/d101a.pdf. 

10Certain standards may require flexibility in the 

way they are applied to central bank-operated 

systems because of central banks’ unique role in the 

financial markets and their public responsibilities. 

These principles include principle 2 on governance, 

principle 3 on the framework for the comprehensive 

management of risks, principle 4 on credit risk, 

principle 5 on collateral, principle 7 on liquidity 

risk, principle 13 on participant-default rules and 

procedures, principle 15 on general business risk, 

and principle 18 on access and participation 

requirements. See PSR Policy Part I.B.1.a. 

11This requirement does not apply to the Fedwire 

Securities Service. There are no private-sector 

competitors to the Fedwire Securities Service that 

would be expected to meet such a requirement. 

Imposing such a requirement when pricing the 

securities services could artificially increase the 

cost of these services. 

equity is larger than what can be offset 

by imputed debt, the excess is imputed 

as investments in Treasury securities; 

income imputed on these investments 

reduces the PSAF. 

Application of the Federal Reserve 

Policy on Payment System Risk (PSR 

policy) to the Fedwire Funds Service. 

The Board’s PSR policy incorporates the 

international standards for financial 

market infrastructures (FMIs) developed 

by the Committee on Payments and 

Market Infrastructures and the 

Technical Committee of the 

International Organization of Securities 

Commissions in the Principles for 

Financial Market Infrastructures.9 The 

Board recognizes the critical role the 

Fedwire Services, including the Fedwire 

Funds Service, play in the financial 

system and requires them to meet or 

exceed the risk-management standards 

in the policy, consistent with relevant 

guidance and the requirements in the 

MCA.10 Principle 15 states that an FMI 

should identify, monitor, and manage 

general business risk and hold sufficient 

liquid net assets funded by equity to 

cover potential general business losses 

so that it can continue operations and 

services as a going concern if those 

losses materialize. Further, liquid net 

assets should at all times be sufficient 

to ensure a recovery or orderly winddown of critical operations and services. 

The Fedwire Funds Service does not 

face the risk that a business shock 

would cause the service to wind down 

in a disorderly manner and disrupt the 

stability of the financial system. To 

foster competition with private-sector 

FMIs, however, the Reserve Banks’ 

priced services will hold an amount 

equivalent to six months of the Fedwire 

Funds Service’s current operating 

expenses as liquid financial assets and 

equity on the pro forma balance sheet.11

Current operating expenses are defined 

as normal business operating expenses 

on the income statement, less 

depreciation, amortization, taxes, and 

interest on debt. Using the Fedwire 

Funds Service’s preliminary 2024 

budget, six months of current operating 

expenses would be $68.5 million. In 

2024, $68.5 million of equity was 

imputed to meet the FDIC capital 

requirements and was sufficient to meet 

the PSR policy requirement. 

Effective tax rate. Like the imputed 

capital structure, the effective tax rate is 

calculated based on data from U.S. 

publicly traded firms. The tax rate is the 

mean of the weighted average rates of 

the U.S. publicly traded market over the 

past five years. 

Debt and equity financing. The 

imputed short- and long-term debt 

financing rates are derived from the 

nonfinancial commercial paper rates 

from the Federal Reserve Board’s H.15 

Selected Interest Rates release (AA and 

A2/P2) and the annual Merrill Lynch 

Corporate & High Yield Index rate, 

respectively. The equity financing rate 

is described above. The rates for debt 

and equity financing are applied to the 

priced services estimated imputed 

short-term debt, long-term debt, and 

equity needed to finance short- and 

long-term assets and meet equity 

requirements. 

The 2024 PSAF is $29.2 million, 

compared with $23.7 million in 2023. 

The increase of $5.5 million is 

attributable to a net $6.1 million 

increase in the cost of capital, and a $0.8 

million increase in Board of Governors 

expenses, offset by a $1.4 million 

decrease in sales tax. The net $6.1 

million increase in cost of capital is 

primarily driven by a $1.6 million 

increase in ROE imputed to satisfy FDIC 

requirements for a well-capitalized 

institution and rising interest rates 

resulting in a $4.5 million increase in 

cost of debt. 

The PSAF expense of $29.2 million, 

detailed in Table 5, includes $17.7 

million for capital funding, $7.6 million 

for Board of Governors’ expense, and 

$3.9 million in sales tax expense. 

As shown in Table 3, 2024 total assets 

of $816.1 million increased by $10.5 

million from 2023. The net increase in 

total assets includes an additional $62.6 

million long-term assets partially offset 

by a net $52.1 million decrease in shortterm assets and imputed investments. 

The net long-term asset increase of 

$62.6 million primarily consists of a 

$94.4 million increase in the net 

pension asset, reflecting higher surplus 

and higher discount rate. The increase 

is partially offset by a decrease in the 

deferred tax asset of $28.1 million due 

to the higher discount rate. 

The decrease in the short-term assets 

is primarily driven by a $67.2 million 

decrease in the imputed investments in 

Treasury securities from imputed equity 

required to meet FDIC capital 

requirements for a well-capitalized 

institution and to comply with the PSR 

policy, partially offset by a $37.0 

million increase in imputed investments 

in Fed Funds. 

The capital structure of the 2024 pro 

forma balance sheet, provided in Table 

4, is composed of equity of $68.5 

million, or 12.3 percent of the 2024 riskweighted assets detailed in Table 6, and 

long-term debt of $100.3 million. The 

2024 capital structure differs from that 

of 2023, which was composed of $69.5 

million of equity and no long-term debt. 

Provided in Table 5, the 2024 initially 

imputed equity required to fund assets 

and meet the publicly traded firm model 

capital requirements is $68.5 million. 

As long-term assets are marginally 

greater than long-term liabilities, longterm debt of $100.36 million was 

imputed at the observed market ratio of 

59.4 percent. The equity of $68.5 

million was adequate to meet the FDIC 

capital requirements for a wellcapitalized institution and sufficient to 

satisfy the PSR policy requirements. 

The net Accumulated Other 

Comprehensive loss is $551.0 million, 

compared with $640.8 million in 2023. 

The $89.8 million increase is primarily 

attributable to a higher discount rate. 

The net Accumulated Other 

Comprehensive loss position does not 

reduce the total imputed equity required 

to fund priced services assets or fulfill 

the FDIC equity requirements for a wellcapitalized institution. 


ddrumheller on DSK120RN23PROD with NOTICES1
82360 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

TABLE 3—COMPARISON OF PRO FORMA BALANCE SHEETS FOR BUDGETED FEDERAL RESERVE MATURE PRICED

SERVICES a

[Millions of dollars—projected average for year] 

2024 2023 Change 

Short-term assets: 

Receivables .......................................................................................................................... $41.8 $41.9 $(0.1) 

Inventory ............................................................................................................................... 0.2 0.2 0.1 

Prepaid expenses ................................................................................................................. 24.0 30.9 (6.8) 

Items in process of collection 12 ........................................................................................... 61.0 76.0 (15.0) 

Total short-term assets ................................................................................................. 127.0 148.9 (21.9) 

Imputed investments: 13

Imputed investment in Treasury securities .......................................................................... ........................ 67.2 (67.2) 

Imputed investment in Fed Funds ........................................................................................ 219.0 182.0 37.0 

Total imputed investments ............................................................................................ 219.0 249.2 (30.2) 

Long-term assets: 

Premises 14 ........................................................................................................................... 95.9 97.3 (1.4) 

Furniture and equipment ...................................................................................................... 53.9 54.2 (0.2) 

Software and leasehold improvements ................................................................................ 67.0 69.9 (2.9) 

Net pension asset ................................................................................................................. 120.4 25.9 94.4 

Deferred tax asset ................................................................................................................ 129.4 157.4 (28.1) 

Total long-term assets ................................................................................................... 470.1 407.5 62.6 

Total assets ............................................................................................................ 816.1 805.6 10.5 

Short-term liabilities: 

Deferred credit items ............................................................................................................ 280.0 258.0 22.0 

Short-term debt ..................................................................................................................... 32.7 47.0 (14.3) 

Short-term payables ............................................................................................................. 33.4 25.9 7.4 

Total short-term liabilities .............................................................................................. 346.0 330.9 15.1 

Long-term liabilities: 

Postemployment/postretirement benefits and net pension liabilities 15 ................................ 300.0 403.9 (103.9) 

Long term debt .............................................................................................................. 100.3 ........................ 100.3 

Total liabilities ................................................................................................................ 747.6 736.1 11.5 

Equity 16 ......................................................................................................................... (551.0) (640.8) 89.8 

Total liabilities and equity ....................................................................................... 816.1 805.6 10.5 

a Calculations in this table and subsequent PSAF tables may be affected by rounding. Excludes amounts related to the FedNow Service. 

TABLE 4—IMPUTED FUNDING FOR MATURE PRICED-SERVICES ASSETS a

[Millions of dollars] 

2024 2023 

A. Short-term asset financing: 

Short-term assets to be financed:.

Receivables ............................................................................................................................................... $41.8 $41.9 

Inventory .................................................................................................................................................... 0.2 0.2 

Prepaid expenses ...................................................................................................................................... 24.0 30.9 

Total short-term assets to be financed ............................................................................................................ 66.0 140.1 

Short-term payables .................................................................................................................................. 33.4 25.9 

Net short-term assets to be financed ............................................................................................................... 32.7 47.0 

Imputed short-term debt financing 17 ................................................................................................................ 32.7 47.0 

B. Long-term asset financing: 

Long-term assets to be financed:.

Premises .................................................................................................................................................... 95.9 97.3 

Furniture and equipment ........................................................................................................................... 53.9 54.2 

Software and leasehold improvements ..................................................................................................... 67.0 69.9 

Net pension asset ..................................................................................................................................... 120.4 25.9 

Deferred tax asset ..................................................................................................................................... 129.4 157.4 

Total long-term assets to be financed .............................................................................................................. 470.1 407.5 

Postemployment/postretirement benefits and net pension liabilities ........................................................ 300.0 403.9 

Net long-term assets to be financed ......................................................................................................... 68.5 69.5 

Imputed long-term debt 21 ......................................................................................................................... 100.3 0.0 

Imputed equity 21 ....................................................................................................................................... 68.5 69.5 


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Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82361 

TABLE 4—IMPUTED FUNDING FOR MATURE PRICED-SERVICES ASSETS a—Continued 

[Millions of dollars] 

2024 2023 

Total long-term financing ................................................................................................................... 68.5 69.5 

aExcludes amounts related to the FedNow Service. 

TABLE 5—DERIVATION OF THE 2024 AND 2023 PSAF FOR MATURE PRICED SERVICES a

[Dollars in millions] 

2024 2023 

Debt Equity Debt Equity 

A. Imputed long-term debt and equity: 

Net long-term assets to finance ............................................................... $168.9 $168.9 $2.3 $2.3 

Capital structure observed in market ....................................................... 59.4% 40.6% 59.1% 40.9% 

Pre-adjusted long-term debt and equity ................................................... 100.3 68.5 1.4 1.0 

Equity adjustments: 18

Equity to meet capital requirements ......................................................... ........................ 68.5 ........................ 49.9 

Adjustment to debt and equity funding given capital requirements 19 ..... ........................ ........................ (1.4) 1.4 

Adjusted equity balance ........................................................................... ........................ 68.5 ........................ 2.3 

Equity to meet capital requirements 20 ..................................................... ........................ ........................ ........................ 47.5 

Total imputed long-term debt and equity .......................................... ........................ 68.5 ........................ 49.9 

B. Cost of capital: 

Elements of capital costs:.

Short-term debt 21 ..................................................................................... 32.7 × 5.4% = 1.8 47.0 × 2.6% = 1.2 

Long-term debt 25 ...................................................................................... 100.3 × 4.0% = 4.0 × 3.6% = 

Equity 22 .................................................................................................... 68.5 × 17.4% = 11.9 49.9 × 14.9% = 7.4 

C. Incremental cost of PSR policy: 

Equity to meet policy ................................................................................ × 17.4% = 19.7 × 14.9% = 2.9 

D. Other required PSAF costs: 

Sales taxes ............................................................................................... ........................ 3.9 ........................ 5.3 

Board of Governors expenses .................................................................. ........................ 7.6 ........................ 6.8 

........................ 11.5 ........................ 12.1 

E. Total PSAF: ................................................................................................. ........................ 29.2 ........................ 23.7 

As a percent of assets ............................................................................. ........................ 3.6% ........................ 2.9% 

As a percent of expenses ........................................................................ ........................ 3.6% ........................ 3.9% 

F. Tax rates .............................................................................................. ........................ 18.84% ........................ 19.26% 

aExcludes amounts related to the FedNow Service. 

TABLE 6—COMPUTATION OF 2024 CAPITAL ADEQUACY FOR FEDERAL RESERVE MATURE PRICED SERVICES a

[Dollars in millions] 

Assets Risk weight Weighted 

assets 

Imputed investments: 

1-Year Treasury securities 23 ................................................................................................ $ 0.0 $ 

Federal funds 24 .................................................................................................................... 219.0 0.2 43.8 

Total imputed investments ................................................................................................... 219.0 ........................ 43.8 

Receivables .......................................................................................................................... 41.8 0.2 8.4 

Inventory ............................................................................................................................... 0.2 1.0 0.2 

Prepaid expenses ................................................................................................................. 24.0 1.0 24.0 

Items in process of collection ............................................................................................... 61.0 0.2 12.2 

Premises ............................................................................................................................... 99.4 1.0 99.4 

Furniture and equipment ...................................................................................................... 53.9 1.0 53.9 

Software and leasehold improvements ................................................................................ 67.0 1.0 67.0 

Pension asset ....................................................................................................................... 120.4 1.0 120.4 

Deferred tax asset ................................................................................................................ 129.4 1.0 129.4 

Total ............................................................................................................................... 816.1 ........................ 558.7 

Imputed equity: 

Capital to risk-weighted assets ............................................................................................ 12.3% 


ddrumheller on DSK120RN23PROD with NOTICES1
82362 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

12Credit float, which represents the difference 

between items in process of collection and deferred 

credit items, occurs when the Reserve Banks debit 

the paying bank for transactions before providing 

credit to the depositing bank. Float is directly 

estimated at the service level. 

13Consistent with the Board’s PSR policy, the 

Reserve Banks’ priced services will hold an amount 

equivalent to six months of the Fedwire Funds 

Service’s current operating expenses as liquid net 

financial assets and equity on the pro forma balance 

sheet. Six months of the Fedwire Funds Service’s 

projected current operating expenses is $68.5 

million. In 2024, the amount of equity was 

sufficient to meet the regulatory capital 

requirements and no additional equity was 

imputed. 

14 Includes the allocation of Board of Governors 

assets to priced services of $3.5 million for 2024 

and $2.7 million for 2023. 

15 Includes the allocation of Board of Governors 

liabilities to priced services of $1.2 million for 2024 

and $1.3 million for 2023. 

16 Includes an accumulated other comprehensive 

loss of $551.0 million for 2024 and $640.8 million 

for 2023, which reflects the ongoing amortization of 

the accumulated loss in accordance with ASC 715. 

Future gains or losses, and their effects on the pro 

forma balance sheet, cannot be projected. See Table 

5 for calculation of required imputed equity 

amount. 

17 Imputed short-term debt financing is computed 

as the difference between short-term assets and 

short-term liabilities. As presented in table 5, the 

financing costs of imputed short-term debt, imputed 

long-term debt and imputed equity are the elements 

of cost of capital, which contribute to the 

calculation of the PSAF. 

18 If minimum equity constraints are not met after 

imputing equity based on the capital structure 

observed in the market, additional equity is 

imputed to meet these constraints. The long-term 

funding need was met by imputing long-term debt 

and equity based on the capital structure observed 

in the market (see Tables 4 and 6). In 2023, the 

amount of imputed equity met the minimum equity 

requirements for risk-weighted assets. 

19Equity adjustment offsets are due to a shift of 

long-term debt funding to equity in order to meet 

FDIC capital requirements for well-capitalized 

institutions. 

20Additional equity in excess of that needed to 

fund priced services assets is offset by an asset 

balance of imputed investments in Treasury 

securities. 

21 Imputed short-term debt and long-term debt are 

computed in Table 4. 

22The 2024 ROE is equal to a risk-free rate plus 

a risk premium (beta * market risk premium). The 

2023 after-tax CAPM ROE is calculated as 5.50% + 

(1.0 * 8.60%) = 14.11%. Using a tax rate of 18.8%, 

the after-tax ROE is converted into a pretax ROE, 

which results in a pretax ROE of (14.11%/(1– 

18.8%)) = 17.38%. Calculations may be affected by 

rounding. 

23 If minimum equity constraints are not met after 

imputing equity based on all other financial 

statement components, additional equity is imputed 

to meet these constraints. Additional equity 

imputed to meet minimum equity requirements is 

invested solely in Treasury securities. The imputed 

investments are similar to those for which rates are 

available on the Federal Reserve’s H.15 statistical 

release, which can be located at http://

www.federalreserve.gov/releases/h15/data.htm. 

24The investments are imputed based on the 

amounts arising from the collection of items before 

providing credit according to established 

availability schedules. 

TABLE 6—COMPUTATION OF 2024 CAPITAL ADEQUACY FOR FEDERAL RESERVE MATURE PRICED SERVICES a—Continued 

[Dollars in millions] 

Assets Risk weight Weighted 

assets 

Capital to total assets ........................................................................................................... 8.4% 

aExcludes amounts related to the FedNow Service. 

C. Check Services—Table 7 shows the 

2022 actual, 2023 forecasted, and 2024 

budgeted cost-recovery performance for 

commercial check services. 

TABLE 7—CHECK SERVICES PRO FORMA COST AND REVENUE PERFORMANCE

[Dollars in millions] 

Year Revenue Total 

expense 

Net income 

(roe) Targeted roe 

Recovery rate 

after targeted 

roe 

1 2 3 [1¥2] 4 5 [1/(2 + 4)] 

2022 (actual) .............................................. 110.5 109.7 0.8 1.0 99.8 

2023 (forecast) ........................................... 110.7 108.1 2.6 1.3 101.2 

2024 (budget) ............................................. 106.1 109.1 (3.0) 2.2 95.4 

1. 2023 Forecast—The Reserve Banks 

forecast that Check Services will recover 

101.2 percent of total expenses and 

targeted ROE, compared with a 2023 

budgeted recovery rate of 96.7 percent. 

Through August 2023, total 

commercial forward and total 

commercial return check volumes were 

6.7 percent lower and 3.9 percent 

greater, respectively, than they were 

during the same period last year. For 

full-year 2023, the Reserve Banks 

estimate that their total forward check 

volume will decline 7.2 percent 

(compared with a budgeted decline of 

8.0 percent) and their total return check 

volume will increase 1.4 percent 

(compared with a budgeted decline of 

6.0 percent) from 2022 levels. The 

Reserve Banks expect that check 

volumes will continue to decline 

because of ongoing substitution away 

from checks to other payment 

instruments. 

2. 2024 Pricing—The Reserve Banks 

expect Check Services to recover 95.4 

percent of total expenses and targeted 

ROE in 2024. The Reserve Banks project 

revenue to be $106.1 million, a decline 

of $4.6 million, or 4.1 percent from the 

2023 forecast. Total expenses for Check 

Services are projected to be $109.1 

million, an increase of $1.0 million, or 

1.0 percent, from 2023 forecasted 

expenses. 

As check volumes continue to 

decline, the proposed pricing increases 

are intended to help stabilize check 

revenues, to shift the revenue mix 

toward fixed fees, and to continue a 

value-based pricing strategy for 

financial institutions that use the 

service. To that end, the Reserve Banks 

will increase the pricing tiers for the 

fixed monthly participation and Reject 

Repair fees. These fee changes support 

the cost of maintaining FRFS Check 

Services infrastructure as fewer checks 

are written each year and follow the 

Check Services business line’s pricing 

strategy to increase the share of revenue 

collected from fixed fees. Table 8 

displayed below shows the 2024-tiered 

participation fees. 


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Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82363 

25This fee is charged to financial institutions that 

have received any Check 21 electronic or substitute 

check volume (forward or return) from the Reserve 

Banks during the month. The fee is applied at the 

parent financial institution level, as defined in the 

Reserve Banks’ Global Customer Directory. Each 

financial institution’s tier assignment is determined 

by the criteria described in the FedForward 

Standard Endpoint Tier Listing. 

26Because of FRFS’ existing 8:00 a.m. ET 

Premium Delivery service, there are items deposited 

between 7:30 a.m. and 9:30 a.m. today that cannot 

be presented on a same-day basis and therefore are 

held over until the following business day, thus the 

Federal Reserve incurs debit float in the process. 

TABLE 8—CHECK 21 PARTICIPATION

FEE STRUCTURE

Tier 25 Monthly fee 

1 ............................................ $425 

2 ............................................ 260 

3 ............................................ 165 

4 ............................................ 80 

The Reserve Banks will also increase 

Reject Repair fees for both basic and 

premium users by $0.05. The Reserve 

Banks will also eliminate forward check 

deposit deadlines—5:00 a.m. ET and 

9:30 a.m. ET—and implement a new 

deadline at 7:30 a.m. ET to further 

simplify the FRFS Check Deposit 

structure. Removing the 9:30 a.m. ET 

deposit deadline and instituting a 7:30 

a.m. ET deadline will eliminate debit 

float and provide customers two-and-ahalf additional hours to deposit.26

The Standard Daily Fee B Image Cash 

Letter (ICL) Option will consequently be 

eliminated as the deposit option only 

provides deposit deadlines at the 5:30 

a.m. ET and 7:30 a.m. ET deadlines the 

Reserve Banks intend to terminate. The 

tables below outline the eliminated and 

new deposit deadlines: 

Deadline 

Eliminated pricing 

structure 

New pricing 

structure 

5:00 AM ET 9:30 AM ET 7:30 AM ET 

Standard ICL Deposit Price Changes 

Cash Letter Fee ........................................................................................................................... $8.50 $10.50 $10.50 

Tier 1 .................................................................................................................................... 0.057 0.072 0.057 

Tier 2 .................................................................................................................................... 0.067 0.082 0.067 

Tier 3 .................................................................................................................................... 0.077 0.092 0.077 

Tier 4 .................................................................................................................................... 0.087 0.102 0.087 

Substitute Checks ........................................................................................................................ 0.200 0.200 0.200 

Deadline 

Eliminated pricing 

structure 

New pricing structure 

1:00 AM ET 9:30 AM ET 1:00 AM ET 7:30 AM ET 

Standard Daily Fee A Deposit Option 

Daily Fixed Fee ................................................................................................ 225.00 225.00 

Tier 1 ........................................................................................................ $0.003 $0.018 $0.003 $0.010 

Tier 2 ........................................................................................................ 0.014 0.029 0.014 0.021 

Tier 3 ........................................................................................................ 0.024 0.039 0.024 0.031 

Tier 4 ........................................................................................................ 0.035 0.050 0.035 0.042 

Substitute Checks ............................................................................................ 0.200 0.200 0.200 0.200 

Eliminate Standard Daily Fee B Deposit Option 

In order to maintain volume stability, 

fixed fees across image cash letter 

options and volume thresholds for some 

customers will decrease in 2024. To that 

end, Daily Fixed Fees for FedForward ®

Services Premium Daily B image cash 

letters will be reduced by $100, from 

$1,700 to $1,600, and for FedForward 

Premium Daily C image cash letters by 

$250, from $3,400 to $3,150. Volume 

thresholds for Retail Payments Premium 

Receivers will be reduced from 2 

million to 1 million items for Level 2 

receivers and from 2 million to 1.5 

million items for Level 3 receivers. 

Finally, the Reserve Banks evaluate 

and set tier assignments every other year 

based on changes in the volume of items 

received by endpoints. These tier 

changes are designed to keep customers 

assigned to the appropriate tier based on 

their volume, daily fixed fee reductions, 

and volume threshold reductions that 

will allow customers to qualify for 

discounts more often as the circulation 

of checks decline. In 2024, the Reserve 

Banks will reassign the tier placement of 

672 customers in FedForward 

Standard’s tiers, 389 customers in 

FedForward Premium Daily’s tiers, 36 

customers in the FedReturn® Standard’s 

tiers, and 36 customers in FedReturn 

Premium Daily’s tiers. Following these 

reassignments, the Reserve Banks will 

charge these customer segments in 

accordance to their tier’s participation 

fee. 

From the above price changes, the 

Reserve Banks estimate all customer 

segments will experience an average 

increase of 0.8 percent of their total 

FRFS projected charges. 

The Reserve Banks’ primary risk to 

current projections for Check Services is 

a greater than expected decline in check 

volume due to the general reduction in 

check writing, substitution away from 

checks to other payment instruments, 

and competition from correspondent 

banks, aggregators, and direct 

exchanges, which would result in lower 

than anticipated revenue. 

D. FedACH Services—Table 9 shows 

the 2022 actual, 2023 forecasted, and 

2024 budgeted cost-recovery 

performance for commercial FedACH 

Services. 


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I 

I I 
82364 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

27Premium Receivers, Tier 1, will be subject to 

a settlement fee of $60 per RTN per month. NonPremium Receivers with a volume threshold of less 

than 1,500,000 items per month, Tier 2, will be 

subject to a settlement fee of $110 per RTN per 

month. Non-Premium Receivers with a volume 

threshold of more than 1,500,000 items per month, 

Tier 3, will be subject to a settlement fee of $250 

per RTN per month. 

28Premium Receivers are Receiving Depository 

Financial Institutions (RDFIs) receiving through 

FedACH at least 90 percent of their FedACHoriginated items, but less than 90 percent of all of 

their ACH items originated through any operator 

(Level One); or RDFIs receiving through FedACH at 

least 90 percent of all of their ACH items originated 

through any operator (Level Two). 

TABLE 9—FEDACH SERVICES PRO FORMA COST AND REVENUE PERFORMANCE

[Dollars in millions] 

Year Revenue Total 

expense 

Net income 

(roe) Targeted roe 

Recovery rate 

after targeted 

roe 

1 2 3 [1¥2] 4 5 [1/(2 + 4)] 

2022 (actual) ........................................................................ 174.0 169.5 4.5 1.6 101.7 

2023 (forecast) ..................................................................... 183.0 170.6 12.4 2.2 105.9 

2024 (budget) ....................................................................... 184.8 171.0 13.8 3.6 105.8 

1. 2023 Forecast—The Reserve Banks 

forecast that FedACH Services will 

recover 105.9 percent of total expenses 

and targeted ROE, compared with a 

2023 budgeted recovery rate of 99.0 

percent. 

Through August 2023, FedACH 

commercial origination and receipt 

volume was 0.4 percent higher and 2.0 

percent higher, respectively, than they 

were during the same period last year. 

For full year 2023, the Reserve Banks 

estimate that FedACH commercial 

origination and receipt volume will 

increase 0.2 percent and 1.1 percent, 

respectively, from 2022 levels, 

compared with a budgeted increase of 

0.6 percent and decline of 1.3 percent. 

2. 2024 Pricing—The Reserve Banks 

expect FedACH Services to recover 

105.8 percent of total expenses and 

targeted ROE in 2024. The Reserve 

Banks project revenue to be $184.8 

million, an increase of $1.8 million, or 

1.0 percent, from the 2023 forecast. 

Total expenses are projected to be 

$171.0 million, an increase of $0.4 

million, or 0.2 percent, from the 2023 

forecast. 

The Reserve Banks will increase the 

monthly ACH Settlement Fee from $100 

to $110 per RTN per month for receivers 

in Tier 2 and from $200 to $250 per 

RTN per month for receivers in Tier 3.27

The price changes are driven by ongoing 

operational costs and increased costs 

associated with the continued 

introduction of additional intraday 

settlement windows to the FedACH 

Service. 

The Reserve Banks will introduce a 

new FedACH receipt 5-year discount 

program for FedACH customers with 

Premium Receiver status.28 Eligible 

customers (Premium Receivers) that 

choose to participate in the program 

will receive the following discounts for 

a five-year period as long as during that 

time they also maintain their existing 

Premium Receiver status: 

• Customers with more than 30 

million FedACH receipt items per 

month: 

Æ $0.0002 per-item discount on all 

forward receipt items received through 

FedACH for the full 5-year length of the 

agreement 

Æ 50 percent discount on the FedACH 

FedPayments Reporter service (FPR) for 

two years at any point during 

participation in the program 

Æ 100 percent discount on the 

FedACH Exception Resolution Service 

(ERS) for two years at any point during 

their participation in the program 

Æ 100 percent discount on the 

FedACH FedPayments Insights service 

(FPI) for two years at any point during 

their participation in the program 

• Customers with between 5 and 30 

million FedACH receipt items per 

month 

Æ $0.0001 per-item discount on all 

forward receipt items received through 

FedACH for the full 5-year length of the 

agreement 

Æ 25 percent discount on the FedACH 

FedPayments Reporter service (FPR) for 

two years at any point during their 

participation in the program 

Æ 50 percent discount on the FedACH 

Exception Resolution Service (ERS) for 

two years at any point during their 

participation in the program 

Æ 50 percent discount on the FedACH 

FedPayments Insights service (FPI) for 

two years at any point during their 

participation in the program 

All of these discounts will be off of 

the price on the FedACH fee schedule 

for which a customer would otherwise 

qualify if they didn’t participate in the 

program. Eligible customers that choose 

not to participate in the program will 

continue to pay the existing fees for 

which they qualify, as delineated on the 

FedACH fee schedule. If any customer 

participating in the program violates the 

tenets of the program at any time, i.e., 

drops below the 5 million FedACH 

receipt items per month threshold and/ 

or does not maintain the Premium 

Receiver status (Level One or Two) they 

had as of the signing of the agreement, 

they will be removed from the program 

and will be charged by FRFS for all of 

the discounts they had accumulated 

since joining the program. 

The Reserve Banks estimate the above 

price changes will result in a 0.3 percent 

average price decrease for FedACH 

customers. 

In addition, the Reserve Banks expect 

to offer an ex-post Payment Anomaly 

Service at some point in 2024 to identify 

unusual activity on payments that have 

been cleared and settled through the 

FedACH Service. Additional details will 

be forthcoming through normal Reserve 

Bank channels. 

The Reserve Banks’ primary risks to 

current projections for the FedACH 

Service are unanticipated cost overruns 

associated with continued technology 

and resiliency investments, and lowerthan-projected volumes and growth due 

to the market and economic 

environment. 

E. Fedwire Funds Service and 

National Settlement Service—Table 10 

shows the 2022 actual, 2023 forecasted, 

and 2024 budgeted cost-recovery 

performance for the Fedwire Funds 

Service and the National Settlement 

Service. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82365 

29 In October 2021, the Board announced that the 

Federal Reserve Banks will adopt the ISO 20022 

message format for the Fedwire® Funds Service. See 

New Message Format for the Fedwire Funds 

Services, 86 FR 55600 (June 27, 2022). Available at 

Federal Register Notice: New Message Format for 

the Fedwire Funds Service. 

30The National Settlement Service expanded its 

hours to 21.5 hours per day in 2022, with a new 

9:00 p.m. ET open for the next business day. 

31Fedwire Funds Service volume growth reflects 

economic growth. For example, its volume has 

grown every year except for 2008 and 2009, when 

it contracted 2.5 percent and 5.0 percent, 

respectively, during the Great Recession. For 

historical Fedwire Funds Service volume data, see 

frbservices.org, ‘‘Fedwire Funds Service—Annual 

Statistics. Available at: https://www.frbservices.org/ 

resources/financial-services/wires/volume-valuestats/annual-stats.html. 

32The Reserve Banks provide transfer services for 

securities issued by the U.S. Treasury, federal 

government agencies, government-sponsored 

enterprises, and certain international institutions. 

Prior to 2023, the priced component of this service 

consisted of revenues, expenses, and volumes 

associated with the transfer of all non-Treasury 

securities. Starting in 2023, the revenues, expenses, 

and volumes associated with the transfer of 

Treasury securities are also included in the priced 

component of this service. 

TABLE 10—FEDWIRE FUNDS SERVICE AND NATIONAL SETTLEMENT SERVICE PRO FORMA COST AND REVENUE

PERFORMANCE

[Dollars in millions] 

Year Revenue Total expense Net income 

(roe) Targeted roe 

Recovery rate 

after targeted 

roe 

1 2 3 [1¥2] 4 5 [1/(2 + 4)] 

2022 (actual) ........................................................................ 157.3 160.8 (3.4) 4.3 95.3 

2023 (forecast) ..................................................................... 163.6 157.2 6.4 4.3 101.3 

2024 (budget) ....................................................................... 163.8 155.6 8.2 3.1 103.2 

1. 2023 Forecast—The Reserve Banks 

forecast that the Fedwire Funds Service 

and the National Settlement Service will 

recover 101.3 percent of total expenses 

and targeted ROE, compared with a 

2023 budgeted recovery rate of 96.2 

percent. 

Through August 2023, Fedwire Funds 

Service online volume was 2.5 percent 

lower than it was during the same 

period last year. For full-year 2023, the 

Reserve Banks estimate that Fedwire 

Funds Service online volume will 

increase 0.1 percent from 2022 levels, 

compared with a budgeted increase of 

2.9 percent. Through August 2023, the 

National Settlement Service settlement 

file volume was 3.0 percent lower than 

it was during the same period last year, 

and settlement entry volume was 1.0 

percent lower. For full-year 2023, the 

Reserve Banks estimate that settlement 

file volume will decrease 3.5 percent 

(compared with a budgeted decrease of 

0.1 percent) and settlement entry 

volume will decrease 0.8 percent 

(compared with a budgeted 0.4 percent 

increase) from 2022 levels. 

2. 2024 Pricing—The Reserve Banks 

expect the Fedwire Funds Service and 

the National Settlement Service to 

recover 103.2 percent of total expenses 

in 2024. Revenue is projected to be 

$163.8 million, an increase of $0.2 

million, or 0.2 percent from the 2023 

forecast. The Reserve Banks project total 

expenses to be $155.6 million, a 

decrease of $1.6 million, or 1 percent, 

from the 2023 forecast. Although overall 

expenses are decreasing, the largest 

technology initiative for the Fedwire 

Funds Service is the transition to the 

ISO 20022 messaging format.29 In 

addition, the National Settlement 

Service continues to incur higher costs 

because of the expansion of its operating 

hours in 2022.30

The Reserve Banks will increase all 

three of the gross origination and receipt 

tiered fees. The tier 1 fee will increase 

from $0.92 to $0.94, the tier 2 fee will 

increase from $0.285 to $0.29, and the 

tier 3 fee will increase from $0.18 to 

$0.19. In addition, the Fedwire Funds 

Service participation fee will increase 

from $100 to $115, alongside a 

FedPayments Manger Import/Export fee 

increase of $50 to $60. The Reserve 

Banks will change National Settlement 

Service fees for 2024. The per file fee 

will increase from $30 to $35, and the 

per entry fee will increase from $1.50 to 

$1.70. The Reserve Banks estimate the 

above price changes will result in a 5 

percent average price increase for 

customers. In addition to addressing the 

rising expenses noted above, these fee 

increases serve to balance additional 

costs incurred by the National 

Settlement Service since their last fee 

increase in 2014. In particular, ongoing 

maintenance and personnel costs largely 

related to the expansion of operating 

hours, which are subject to inflationary 

pressures, have increased considerably 

in the interim. 

In addition, these fee increases will 

help address diminishing fixed fee 

revenue from the Fedwire Funds 

Service as fee revenue has become 

increasingly dependent on variable 

resources. To note, the percentage of 

fixed fee revenue has decreased from 12 

percent in 2014 to 7 percent in 2023. 

This has resulted in larger variances in 

fee revenue as volume moves higher or 

lower. The proposed fee increases will 

bolster the percentage of fixed fee 

revenue to approximately 8 percent in 

2024. 

The Reserve Banks’ primary risk to 

current projections for these services is 

uncertainty about the economic outlook 

for 2024, which complicates the 

accuracy of 2024 volume projections. 

Historically, Fedwire Funds Service 

volume has reflected market conditions, 

and a broader downturn in 2024 would 

likely result in a decrease in Fedwire 

Funds Service volume.31 Separately, 

unexpected increases in 2024 

technology costs would likely result in 

reduced cost recovery for the year. 

F. Fedwire Securities Service—Table 

11 shows the 2022 actual, 2023 forecast, 

and 2024 budgeted cost-recovery 

performance for the Fedwire Securities 

Service.32


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33See ‘‘Federal Reserve Actions to Support 

Interbank Settlement of Instant Payments,’’ (August 

9, 2019). Available at 2019–17027.pdf (govinfo.gov). 

Per its 2019 Notice, the Board committed to 

disclosing costs related to development of the 

service beginning the year the service is available 

to participating banks. 

34This pricing is set to recover costs associated 

with mature volume estimates, when the service 

has relatively stable costs and revenues. This 

approach, which is in alignment with how the 

Reserve Banks have set fees for new services in the 

past, should limit prohibitively high or 

unnecessarily volatile pricing as the service 

matures. For instance, in establishing fees for the 

Federal Reserve’s ACH service, the Board allowed 

fees to be set to recover costs associated with 

mature volume estimates instead of current costs. 

See Board of Governors of the Federal Reserve 

System, ‘‘Adoption of Fee Schedules and Pricing 

Principles for Federal Reserve Bank Services,’’ 46 

FR 1338, 1343 (Jan. 6, 1981). Available at: https:// 

cdn.loc.gov/service/ll/fedreg/fr046/fr046003/ 

fr046003.pdf. 

35The participation fee will only be charged to 

RTNs that are able to receive CCTs (Send & Receive 

or Receive-only participation types). The 

participation fee will not be charged to Liquidity 

Management Transfer (LMT) only and Settlementonly participation types in 2024. The discount for 

CCT results from offsetting the fees for the first 

2,500 CCTs (per month) and will be applied per 

RTN enrolled in the FedNow Service. 

TABLE 11—FEDWIRE SECURITIES SERVICE PRO FORMA COST AND REVENUE PERFORMANCE

[Dollars in millions] 

Year Revenue Total 

expense 

Net income 

(roe) 

Targeted 

roe 

Recovery rate 

after targeted 

roe 

1 2 3 [1¥2] 4 5 [1/(2 + 4)] 

2022 (actual) ........................................................................ 24.9 22.9 2.0 0.2 107.6 

2023 (forecast) ..................................................................... 47.7 39.7 8.1 0.5 118.9 

2024 (budget) ....................................................................... 46.8 41.4 5.4 0.8 110.9 

1. 2023 Forecast—The Reserve Banks 

forecast that the Fedwire Securities 

Service will recover 118.9 percent of 

total expenses and targeted ROE, 

compared with a 2023 budgeted 

recovery rate of 106.5 percent. 

Through August 2023, Treasury 

security transfer volume was 24.3 

percent higher than it was during the 

same period last year. For full-year 

2023, the Reserve Banks estimate that 

Treasury security transfer volume will 

increase 17.7 percent from 2022 levels, 

compared with a budgeted increase of 

1.0 percent. Through August 2023, 

Agency security transfer volume was 

11.1 percent lower than it was during 

the same period last year. For full-year 

2023, the Reserve Banks estimate that 

Agency security transfer volume will 

decrease 9.4 percent from 2022 levels, 

compared with a budgeted decrease of 

9.2 percent. 

Through August 2023, account 

maintenance volume was 1.9 percent 

lower than it was during the same 

period last year. For full-year 2023, the 

Reserve Banks estimate that account 

maintenance volume will decline 1.4 

percent from 2022 levels, compared 

with a budgeted decline of 3.3 percent. 

Through August 2023, the number of 

agency issues maintained was 2.0 

percent higher than it was during the 

same period last year. For full-year 

2023, the Reserve Banks estimate that 

the number of agency issues maintained 

will increase 1.3 percent from 2022 

levels, compared with a budgeted 

decline of 0.1 percent. 

2. 2024 Pricing—The Reserve Banks 

expect the Fedwire Securities Service to 

recover 110.9 percent of total expenses 

and targeted ROE in 2024. Revenue is 

projected to be $46.8 million, a decrease 

of $0.9 million, or 2.0 percent, from the 

2023 revenue forecast. The Reserve 

Banks also project that 2024 expenses 

will be $41.4 million, an increase of 

$1.7 million, or 4.3 percent from the 

2023 forecast. 

The Reserve Banks will leave fee 

schedules for the Fedwire Securities 

Service unchanged in 2024. The Reserve 

Banks project that agency transfer 

volume will remain relatively stable 

compared with previous years, with no 

notable changes that could potentially 

have a significant impact on agency 

transfers. The volume of Treasury 

security transfers is projected to 

decrease due to the moderation of 

higher than expected Treasury security 

transfer volume in 2023. The volume of 

accounts maintained are expected to 

decrease 2.5 percent, consistent with 

recent trends and primarily driven by a 

reduction in joint custody accounts. The 

volume of agency issues maintained is 

expected to remain relatively flat, 

driven by the expecting slowing of net 

issuance of Agency MBS. Claim 

adjustment volume is expected to 

remain relatively stable consistent with 

recent trends. 

The Reserve Banks’ primary risks to 

current projections for the Fedwire 

Securities Service include variations in 

technology costs and product volume 

forecasts stemming from an uncertain 

economic outlook. 

G. FedNow Service 

1. Cost to Introduce the FedNow 

Service—Following the FedNow Service 

launch in July 2023 and in alignment 

with its 2019 Federal Register Notice 

announcing its decision to introduce the 

service, the Board is publishing total 

cost to bring the FedNow Service to 

market.33 From August 2019 through 

July 2023, costs to introduce the 

FedNow Service totaled $545 million. 

These costs include efforts to develop 

key FedNow Service features and 

functionality, as well as activities to 

support financial institutions as they 

leverage the service to provide 

innovative instant payments solutions 

to individuals and businesses. This 

figure includes costs related to delivery 

of a secure and resilient payments 

infrastructure that leverages cloud-first 

design, and implementation of 24x7 

operations to support processing around 

the clock. Additionally, costs include 

efforts to integrate the FedNow Service 

into existing Reserve Bank technology 

(for example, FedLine Solutions), 

implementation of a new seven-day 

accounting regime by the Federal 

Reserve, and education and readiness 

activities to prepare stakeholders across 

the payments ecosystem for adoption of 

the FedNow Service. 

2. 2024 Pricing—The Reserve Banks 

will maintain the previous year’s fee 

schedule, inclusive of discounts.34 With 

these discounts, the FedNow Service 

participation fee will be $0.00 in 

recognition of the limited network 

reach, and customer credit transfers 

(CCTs) under a threshold of 2,500 per 

month will be $0.00.35 The discount for 

a limited number of CCTs is intended to 

support institutions of all sizes as they 

validate processing capabilities in 

production through regular test 

transactions with partners as well as 

acclimate to 24x7 operations. In 

addition, to encourage the onboarding of 

customers, new FedLine Advantage 

channel connections or upgrades from 

existing FedLine Solutions to FedLine 

Advantage will be discounted to $0.00 

for a rolling 12-month period following 

initiation. 

H. FedLine Solutions—The Reserve 

Banks charge fees for the electronic 


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36FedLine Solutions provide customers with 

access to Reserve Bank priced services. As a result, 

FedLine costs and revenue are allocated to the 

Reserve Banks’ priced services on an expense ratio 

basis. 37FedMail, FedLine Exchange, FedLine Web, 

FedLine Advantage, FedLine Command, and 

FedLine Direct are registered trademarks of the 

Federal Reserve Banks. 

38The Reserve Banks are preparing to deliver 

services to the industry via Application 

Programming Interfaces (API). APIs are a set of 

protocols for connecting software systems 

programmatically, enabling system-to-system 

interoperability. Communication will be 

forthcoming on timing, availability, and pricing of 

initial APIs. 

39Attended packages require manual processes 

compared to automation of payment and 

information services offered by unattended 

packages. The Reserve Banks will continue to 

update pricing to differentiate the value proposition 

offered by attended and unattended packages. 

40Federal Reserve Regulatory Service (FRRS) 9– 

1558. 

connections that financial institutions 

use to access priced services and 

allocate the costs and revenues 

associated with this electronic access to 

the priced services.36 There are six 

FedLine Solutions channels through 

which customers can access the Reserve 

Banks’ priced services: FedMail, 

FedLine Exchange®, FedLine Web, 

FedLine Advantage, FedLine 

Command® and FedLine Direct®.37 The 

Reserve Banks bundle these channels 

into 12 FedLine Solutions packages, 

described below, that are supplemented 

by a number of premium (or a` la carte) 

access and accounting information 

options. In addition, the Reserve Banks 

offer FedComplete® packages, which are 

bundled offerings of FedLine 

connections and a fixed number of 

FedACH Services, Fedwire Funds 

Service, and Check 21–enabled 

transactions.38 FedLine Solutions 

packages offer attended or unattended 

access to critical payment and 

information services. FedMail, FedLine 

Exchange, FedLine Web, and FedLine 

Advantage packages offer attended or 

manual access via a web-based 

interface.39 In addition, FedLine 

Advantage offers attended access to the 

FedNow Service since its launch in July 

2023. FedLine Command and FedLine 

Direct packages are computer-tocomputer, internet protocol–based 

interfaces that support unattended 

access. The FedLine Command package 

offers an unattended connection to 

FedACH, most accounting information 

services, and the FedNow Service. 

FedLine Direct packages allow for 

unattended connections at multiple 

connection speeds to Check, FedACH, 

Fedwire Funds, and Fedwire Securities 

transactional and information services 

and to most accounting information 

services. In addition, FedLine Direct 

packages also allow for unattended 

connection to the FedNow Service. 

In order to continue to support 

FedMail Services, the Reserve Banks 

will increase the monthly fees for the 

FedMail Email Service from $85 to $100 

and increase the monthly fee for the 

FedMail Service from $85 to $100. The 

FedMail Email Service is available a` la 

carte only for FedLine Web or higher 

packages. FedMail is a legacy service, 

and the fee increases are to incentivize 

customers to migrate to more 

contemporary, online solutions such as 

FedLine Web. This is part of the Reserve 

Banks’ multiyear effort to provide 

highly secure, modern access solutions, 

and value-added services not available 

on legacy technology. 

The FedLine Web solution offers 

access to core information services as 

well as check payment services. The 

Reserve Banks will create a new pricing 

tier for FedLine Web called FedLine 

Web Premier for a monthly fee of $200. 

Automation of payments and 

informational services is available 

through FedLine Command and 

FedLine Direct packages, so 

credentialing a customer who desires 

check payment automation via FedLine 

Web requires a manual exception 

process by the FRFS Support Center. 

The Reserve Banks proposed the new 

pricing tier to reflect the cost of 

credentialing users and the value check 

files automation technology provides to 

payment services not offered by 

attended services such as FedLine Web 

and FedLine Web Plus. 

The introduction of the FedNow 

Service requires multiple 

enhancements, such as 7-Day 

Accounting, that have been made to the 

Accounting Information Services (AIS). 

The Reserve Banks will increase prices 

for the AIS to reflect the enhancement 

value as well as to incent customers 

toward automated channels that better 

address their needs. Specifically, the 

Reserve Banks will increase the 

following fees: 

TABLE 12—ACCOUNTING INFORMATION SERVICES FEE SCHEDULE

Electronic Access Service Fee 

(per month) 

End-of-Day Financial Institution Reconcilement Data (FIRD) File ....................................................................................... from $150 to $200. 

Statement of Account Spreadsheet File (SASF) .................................................................................................................. from $150 to $200. 

Intra-day Download Search Results in Spreadsheet Format (with Accounting Management Information (AMI)) ............... from $150 to $200. 

CMS Plus Own Report—Up to 12 files with no OSRTN, Respondent or Subaccount activity ............................................ from $60 to $75. 

CMS Plus Own Report plus OSRTN, Respondents and Subaccounts—Up to 12 files with up to nine OSRTNs, Respondents and Subaccounts.from $125 to $150. 

CMS Plus Own Report plus OSRTN, Respondents and Subaccounts—Up to 12 files with 10–50 OSRTNs, Respondents and Subaccounts.from $250 to $300. 

CMS Plus Own Report plus OSRTN, Respondents and Subaccounts—Up to 12 files with 51–100 OSRTNs, Respondents and Subaccounts.from $500 to $600. 

CMS Plus Own Report plus OSRTN, Respondents and Subaccounts—Up to 12 files with 101–500 OSRTNs, Respondents and Subaccounts.from $750 to $900. 

CMS Plus Own Report plus OSRTN, Respondents and Subaccounts—Up to 12 files with over 500 OSRTNs, Respondents and Subaccounts.from $1,000 to $1,200. 

The Reserve Banks estimate that the 

above price changes will result in an 

average 2.7 percent price increase for 

customers. 

II. Analysis of Competitive Effect 

All operational and legal changes 

considered by the Board that have a 

substantial effect on payment system 

participants are subject to the 

competitive impact analysis described 

in the March 1990 policy ‘‘The Federal 

Reserve in the Payments System.’’ 40

Under this policy, the Board assesses 

whether changes would have a direct 

and material adverse effect on the 

ability of other service providers to 


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compete effectively with the Federal 

Reserve in providing similar services 

because of differing legal powers or 

constraints or because of a dominant 

market position deriving from such legal 

differences. If any proposed changes 

create such an effect, the Board must 

further evaluate the changes to assess 

whether the benefits associated with the 

changes—such as contributions to 

payment system efficiency, payment 

system integrity, or other Board 

objectives—can be achieved while 

minimizing the adverse effect on 

competition. 

The 2024 fees, fee structures, and 

changes in service will not have a direct 

and material adverse effect on the 

ability of other service providers to 

compete effectively with the Reserve 

Banks in providing similar services. 

When conducting the competitive effect 

analysis for the FedNow Service, the 

Federal Reserve assessed whether its 

pricing strategy as a new service, 

including discounts, would have a 

material, adverse effect on the ability of 

other service providers to compete 

effectively with the Reserve Banks due 

to differing legal powers or a dominate 

market position as a result of such 

differing legal powers. The Board 

concluded that the pricing strategy, 

including discounts, followed general 

market practice for new services and 

could similarly be implemented by 

private sector providers unrelated to any 

differing legal powers. Therefore, the 

Reserve Banks’ pricing does not have a 

material adverse effect on the ability of 

other service providers to compete 

effectively with the Reserve Banks in 

providing similar services. 

The Reserve Banks expect to continue 

to achieve aggregate long-run cost 

recovery across all mature priced 

services. 

III. 2024 Fee Schedules 

FEDACH® SERVICES 2024 FEE SCHEDULE

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

FedACH minimum monthly fee: 

Originating depository financial institution (ODFI) 41 .......................................................................................................... $50.00. 

Receiving depository financial institution (RDFI) 42 ............................................................................................................ 40.00. 

Origination (per item or record): 

Forward or return items ...................................................................................................................................................... 0.0035. 

SameDay Service—forward item 43 .................................................................................................................................... 0.0010 surcharge. 

Addenda record .................................................................................................................................................................. 0.0015. 

FedLine Web-originated returns and notification of change (NOC) 44 ............................................................................... 0.50. 

Facsimile Exception Return/NOC 45 ................................................................................................................................... 45.00. 

SameDay Exception Return ............................................................................................................................................... 45.00. 

Automated NOC ................................................................................................................................................................. 0.20. 

Volume discounts (based on monthly billed origination volume) 46 per item when origination volume is 

750,001 to 1,500,000 items per month discount ........................................................................................................ 0.0008. 

more than 1,500,000 items per month discount ......................................................................................................... 0.0010. 

Volume discounts (based on monthly billed receipt volume) 47 per item when receipt volume is ....................................

10,000,001 to 15,000,000 items per month discount ................................................................................................. 0.0002. 

more than 15,000,000 items per month discount ....................................................................................................... 0.0003. 

Receipt (per item or record): .....................................................................................................................................................

Forward Item ....................................................................................................................................................................... 0.0035. 

Return Item ......................................................................................................................................................................... 0.0075. 

Addenda record .................................................................................................................................................................. 0.0015. 

Volume discounts: ..............................................................................................................................................................

Non-Premium Receivers 48 per item when volume is 

750,001 to 12,500,000 items per month 49 .......................................................................................................... 0.0017 discount. 

more than 12,500,000 items per month 50 ........................................................................................................... 0.0019 discount. 

Premium Receivers, Level One 51 per item when volume is 

750,001 to 1,500,000 items per month 52 ............................................................................................................ 0.0017 discount. 

1,500,001 to 2,500,000 items per month 53 ......................................................................................................... 0.0017 discount. 

2,500,001 to 12,500,000 items per month 53 ....................................................................................................... 0.0018 discount. 

12,500,001 to 30,000,000 items per month 53 ..................................................................................................... 0.0020 discount. 

more than 30,000,000 items per month 53 ........................................................................................................... 0.0023 discount. 

Premium Receivers, Level Two 54 per item when volume is 

750,001 to 1,500,000 items per month 55 ............................................................................................................ 0.0017 discount. 

1,500,001 to 2,500,000 items per month 56 ......................................................................................................... 0.0017 discount. 

2,500,001 to 12,500,000 items per month 56 ....................................................................................................... 0.0019 discount. 

12,500,001 to 30,000,000 items per month 56 ..................................................................................................... 0.0021 discount. 

more than 30,000,000 items per month 56 ........................................................................................................... 0.0024 discount. 

FedACH Risk Management Services: 57

Monthly Package Fee (a single fee based on total number of criteria sets): 

For up to 5 criteria sets ............................................................................................................................................... 45.00. 

For 6 through 11 criteria sets ...................................................................................................................................... 85.00. 

For 12 through 23 criteria sets .................................................................................................................................... 150.00. 

For 24 through 47 criteria sets .................................................................................................................................... 180.00. 

For 48 through 95 criteria sets .................................................................................................................................... 300.00. 

For 96 through 191 criteria sets .................................................................................................................................. 510.00. 

For 192 through 383 criteria sets ................................................................................................................................ 810.00. 

For 384 through 584 criteria sets ................................................................................................................................ 1,025.00. 

For more than 584 criteria sets ................................................................................................................................... 1,325.00. 

Batch/Item Monitoring (based on total monthly volume): 

For 1 through 100,000 batches (per batch) ................................................................................................................ 0.007. 

For more than 100,000 batches (per batch) ............................................................................................................... 0.0035. 


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FEDACH® SERVICES 2024 FEE SCHEDULE—Continued 

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

FedPayments Insights Service: 58

Monthly Fee (a single fee based on commercial receipt volume): 

0–50,000 items per month .......................................................................................................................................... 75.00. 

50,001–100,000 items per month ............................................................................................................................... 120.00. 

100,001–500,000 items per month ............................................................................................................................. 180.00. 

500,001–1,000,000 items per month .......................................................................................................................... 260.00. 

1,000,001–5,000,000 items per month ....................................................................................................................... 340.00. 

5,000,001–10,000,000 items per month ..................................................................................................................... 450.00. 

10,000,001–25,000,000 items per month ................................................................................................................... 550.00. 

25,000,001–60,000,000 items per month ................................................................................................................... 625.00. 

Over 60,000,000 items per month .............................................................................................................................. 700.00. 

Monthly FedPayments Reporter Service: 

FedPayments Reporter Service monthly package includes the following reports: 

ACH Received Entries Detail—Customer and Depository Financial Institution 

ACH Return Reason Report—Customer and Depository Financial Institution 

ACH Originated Entries Detail—Customer and Depository Financial Institution 

ACH Volume Summary by SEC Code—Customer 

ACH Customer Transaction Activity 

ACH Death Notification 

ACH International (IAT) 

ACH Notification of Change 

ACH Payment Data Information File 

ACH Remittance Advice Detail 

ACH Remittance Advice Summary 

ACH Return Item Report and File 

ACH Return Ratio 

ACH Social Security Beneficiary 

ACH Originator Setup 

ACH Report Delivery via FedLine Solution 

On Demand Report Surcharge 59 ................................................................................................................................ 1.00. 

Monthly Package Fee (counts reflect reports generated as well as delivered via a FedLine Solution): 

For up to 50 reports ............................................................................................................................................................ 45.00. 

For 51 through 150 reports ................................................................................................................................................ 65.00. 

For 151 through 500 reports .............................................................................................................................................. 120.00. 

For 501 through 1,000 reports ........................................................................................................................................... 220.00. 

For 1,001 through 1,500 reports ........................................................................................................................................ 320.00. 

For 1,501 through 2,500 reports ........................................................................................................................................ 505.00. 

For 2,501 through 3,500 reports ........................................................................................................................................ 705.00. 

For 3,501 through 4,500 reports ........................................................................................................................................ 900.00. 

For 4,501 through 5,500 reports ........................................................................................................................................ 1,095.00. 

For 5,501 through 7,000 reports ........................................................................................................................................ 1,350.00. 

For 7,001 through 8,500 reports ........................................................................................................................................ 1,585.00. 

For 8,501 through 10,000 reports ...................................................................................................................................... 1,815.00. 

For more than 10,000 reports ............................................................................................................................................ 1,980.00. 

Premier reports (per report generated): 60 ..........................................................................................................................

ACH Volume Summary by SEC Code Report—Depository Financial Institution: 

For 1 through 5 reports ........................................................................................................................................ 10.00. 

For 6 through 10 reports ...................................................................................................................................... 6.00. 

For 11 or more reports ......................................................................................................................................... 1.00. 

On Demand Surcharge ........................................................................................................................................ 1.00. 

ACH Routing Number Activity Report: 

For 1 through 5 reports ........................................................................................................................................ 10.00. 

For 6 through 10 reports ...................................................................................................................................... 6.00. 

For 11 or more reports ......................................................................................................................................... 1.00. 

On Demand Surcharge ........................................................................................................................................ 1.00. 

ACH Originated Batch Report (monthly): 

For 1 through 5 reports ........................................................................................................................................ 10.00. 

For 6 through 10 reports ...................................................................................................................................... 6.00. 

For 11 or more reports ......................................................................................................................................... 1.00. 

On Demand Surcharge ........................................................................................................................................ 1.00. 

ACH Originated Batch Report (daily): 

Scheduled Report ................................................................................................................................................. 0.65. 

On Demand Surcharge ........................................................................................................................................ 1.00. 

On-us inclusion: 

Participation (monthly fee per RTN) ............................................................................................................................ 10.00. 

Per-item ....................................................................................................................................................................... 0.0030. 

Per-addenda ................................................................................................................................................................ 0.0015. 

Report delivery via encrypted email (per email) ................................................................................................................ 0.20. 

Other Fees and Discounts: 

Monthly fee (per RTN): 

FedACH Participation Fee 61 ....................................................................................................................................... 75.00. 


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FEDACH® SERVICES 2024 FEE SCHEDULE—Continued 

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

Same Day Service Origination Participation Fee 62 .................................................................................................... 10.00. 

FedACH Settlement Fee 63

Premium Receivers, Level One and Level Two ......................................................................................................... 60.00. 

Non-Premium Receivers when volume is less than 1,500,000 items per month, Tier 2 ................................... 110. 

Non-Premium Receivers when volume is more than 1,500,000 items per month, Tier 3 ................................. 250.00. 

FedACH Information File Extract Fee ................................................................................................................................ 180.00. 

IAT Output File Sort Fee .................................................................................................................................................... 150.00. 

Fixed Participation Fee—Automated NOCs 64 ................................................................................................................... 5.00. 

Non-Electronic Input/Output fee: 65

CD/DVD (CD or DVD) ................................................................................................................................................. 50.00. 

Paper (file or report) .................................................................................................................................................... 50.00. 

Fees and Credits Established by Nacha: 66

Nacha Same-Day Entry fee (per item) ........................................................................................................................ 0.052. 

Nacha Same-Day Entry credit (per item) .................................................................................................................... 0.052 (credit). 

Nacha Unauthorized Entry fee (per item) ................................................................................................................... 4.50. 

Nacha Unauthorized Entry credit (per item) ............................................................................................................... 4.50 (credit). 

Nacha Admin Network fee (monthly fee per RTN) 67 ................................................................................................. 28.67. 

Nacha Admin Network fee (per entry) ........................................................................................................................ 0.000185. 

FedGlobal® ACH Payments: 68

Fixed Monthly Fee (per RTN): 69

Monthly origination volume more than 500 items ....................................................................................................... 185.00. 

Monthly origination volume between 161 and 500 items ........................................................................................... 60.00. 

Monthly origination volume less than 161 items ......................................................................................................... 20.00. 

Per-item Origination Fee for Monthly Volume more than 500 Items (surcharge): 70

Mexico service ............................................................................................................................................................. 0.55. 

Panama service ........................................................................................................................................................... 0.60. 

Per-item Origination Fee for Monthly Volume between 161 and 500 items (surcharge): 70

Mexico service ............................................................................................................................................................. 0.80. 

Panama service ........................................................................................................................................................... 0.85. 

Per-item Origination Fee for Monthly Volume less than 161 items (surcharge): 70

Mexico service ............................................................................................................................................................. 1.05. 

Panama service ........................................................................................................................................................... 1.10. 

Other FedGlobal ACH Payments Fees: 

Mexico service: 

Return received from Mexico 71 ........................................................................................................................... 0.91 (surcharge). 

Item trace 72 .......................................................................................................................................................... 13.50. 

Foreign currency to foreign currency (F3X) item originated to Mexico 70 ........................................................... 0.67 (surcharge). 

Panama service: 

Return received from Panama 71 ......................................................................................................................... 1.00 (surcharge). 

Item trace 72 .......................................................................................................................................................... 7.00. 

NOC ...................................................................................................................................................................... 0.72. 

Exception Resolution Service: 

Monthly Fees (applies to cases only at the parent RTN): 73

Up to 5 cases .............................................................................................................................................................. 20.00. 

6–25 cases .................................................................................................................................................................. 40.00. 

26–50 cases ................................................................................................................................................................ 60.00. 

51–100 cases .............................................................................................................................................................. 100.00. 

101–1,000 cases ......................................................................................................................................................... 250.00. 

1,001–5,000 cases ...................................................................................................................................................... 400.00. 

5,001 cases and above ............................................................................................................................................... 500.00. 

Offline Service Participant—Case Fees: 74

Case Open Fee ........................................................................................................................................................... 5.00. 

Case Response Fee .................................................................................................................................................... 5.00. 

FedACH Receipt Discount Program Introduced in 202475

Customers with more than 30 million FedACH receipt items per month: 

Per-item discount on all forward receipt items received through FedACH for the full five-year length of 

the agreement.

0.0002 

Percentage discount on the FedACH FedPayments® Reporter service (FPR) for two years at any point 

during participation in the program.

50 percent. 

Percentage discount on the FedACH Exception Resolution Service (ERS) for two years at any point during their participation in the program.100 percent. 

Percentage discount on the FedACH FedPayments® Insights service (FPI) for two years at any point during their participation in the program.100 percent. 

Customers with between 5 and 30 million FedACH receipt items per month: 

Per-item discount on all forward receipt items received through FedACH for the full 5-year length of the 

agreement.

0.0001. 

Percentage discount on the FedACH FedPayments Reporter service (FPR) for two years at any point during 

their participation in the program.

25 percent. 

Percentage discount on the FedACH Exception Resolution Service (ERS) for two years at any point during 

their participation in the program.

50 percent. 


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FEDACH® SERVICES 2024 FEE SCHEDULE—Continued 

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

Percentage discount on the FedACH FedPayments Insights service (FPI) for two years at any point during 

their participation in the program.

50 percent. 

FEDWIRE® FUNDS SERVICE AND NATIONAL SETTLEMENT SERVICE 2024 FEE SCHEDULES

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

Fedwire® Funds Service 

Monthly Participation Fee ....................................................................................................................................................... $115.00 

Basic volume-based pre-incentive transfer fee (originations and receipts)—per transfer for 

Tier 1: The first 14,000 transfers per month .................................................................................................................. 0.940 

Tier 2: Additional transfers up to 90,000 per month .................................................................................................... 0.290 

Tier 3: Every transfer over 90,000 per month ............................................................................................................... 0.190 

Volume-based transfer fee with the incentive discount (originations and receipts)—per eligible transfer for 76

Tier 1: The first 14,000 transfers per month ...................................................................................................................... 0.188 

Tier 2: Additional transfers 14,001 to 90,000 per month ................................................................................................... 0.058 

Tier 3: Every transfer over 90,000 per month .................................................................................................................... 0.038 

Surcharge for Offline Transfers (Originations and Receipt) ...................................................................................................... 75.00 

Surcharge for End-of-Day Transfer Originations 77 ................................................................................................................... 0.26 

Monthly FedPayments Manager Import/Export fee 78 .......................................................................................................... 60.00 

Surcharge on transfers >$10 million Origination and Receipt .................................................................................................. 0.14 

Surcharge on transfers >$100 million Origination and Receipt ................................................................................................ 0.36 

Surcharge for Payment Notification: 

Origination Surcharge 79 ..................................................................................................................................................... 0.01 

Receipt Volume 79 80 ........................................................................................................................................................... N/A 

Delivery of Reports—Hard Copy Reports to On-Line Customers ............................................................................................. 50.00 

Special Settlement Arrangements (charge per settlement day) 81 ............................................................................................ 150.00 

National Settlement Service 

Basic: 

Settlement Entry Fee ........................................................................................................................................................ 1.70 

Settlement File Fee ........................................................................................................................................................... 35.00 

Surcharge for Offline File Origination 82 .................................................................................................................................... 45.00 

Minimum Monthly Fee 83 ............................................................................................................................................................ 60.00 

FEDWIRE® SECURITIES SERVICE 2024 FEE SCHEDULE

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

Basic Transfer Fee: 84 85

Agency Securities: Transfer or reversal originated or received ................................................................................................... $0.61 

Treasury Securities: Transfer or reversal originated or received ................................................................................................ 0.61 

Surcharge: 86

Agency Securities: Offline origination & receipt surcharge .......................................................................................................... 80.00 

Treasury Securities: Offline origination & receipt surcharge ....................................................................................................... 80.00 

Monthly Maintenance Fees: 87

Agency Securities: Account maintenance (per account) 88 ......................................................................................................... 57.50 

Agency Securities: Issue maintenance (per issue/per account) 89 .............................................................................................. 0.61 

Treasury Securities: Account maintenance (per account) 90 ....................................................................................................... None 

Treasury Securities: Issue maintenance (per issue/per account) 91 ............................................................................................ None 

ACAP Fees: 92 93

Claims Adjustment Fee ................................................................................................................................................................ 1.00 

Tracking Indicators Fee ................................................................................................................................................................ 0.10 

Position Maintenance Fee (per position maintained/per business day) 94 95 ............................................................................... 0.03 

GNMA Serial Note Stripping or Reconstitution Fee 96 ........................................................................................................................ 9.00 

Joint Custody Origination Surcharge 97 98 ........................................................................................................................................... 46.00 

Delivery of Reports—Hard Copy Reports to On-Line Customers 99 ................................................................................................... 50.00 


ddrumheller on DSK120RN23PROD with NOTICES1
82372 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

FEDNOW® SERVICE 2024 FEE SCHEDULE

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

Customer Credit Transfer (per item) PACS.008 Origination ..................................................................................................... $0.045. 

Customer Credit Transfer Returns (per item) PACS.004 Origination ....................................................................................... 0.045. 

Liquidity Management Transfer (LMT) (per-item) PACS.009 Origination ................................................................................. 1.00. 

Request for Payment (RFP) (per-item) PAIN.013 ..................................................................................................................... 0.01. 

PACS.008 Origination Discount ................................................................................................................................................. ¥$0.045 per item 

for up to 2,500 

customer credit 

transfers per 

month (in 2024). 

Participation Fee—General (per month) .................................................................................................................................... $25.00, discounted 

to $0.00 in 2024. 

FEDLINE® 2024 FEE SCHEDULE

[Effective January 2, 2024. Bold indicates changes from 2023 prices.] 

Fee 

FedComplete Packages (monthly) 100 101

FedComplete 100A Plus 102 ..................................................................................................................................................... $900.00. 

FedComplete 100A Premier ..................................................................................................................................................... 975.00. 

includes: 

FedLine Advantage Premier package.

Volumes included in the FedComplete 100A Plus package.

FedComplete 200A Plus .......................................................................................................................................................... 1,425.00. 

FedComplete 200A Premier ..................................................................................................................................................... 1,500.00. 

includes: 

FedLine Advantage Premier package.

Volumes included in the FedComplete 200A Plus package.

FedComplete Excess Volume and Receipt Surcharge: 103

FedForward 104 .................................................................................................................................................................. 0.03700/item. 

FedReturn .......................................................................................................................................................................... 0.82000/item. 

FedReceipt ........................................................................................................................................................................ 0.00005/item. 

Fedwire Funds Origination ................................................................................................................................................ 0.94000/item. 

Fedwire Funds Receipt ..................................................................................................................................................... 0.09400/item. 

FedACH Origination .......................................................................................................................................................... 0.00350/item. 

FedACH Receipt ............................................................................................................................................................... 0.00035/item. 

FedComplete credit adjustment ............................................................................................................................................... various. 

FedComplete debit adjustment ................................................................................................................................................ various. 

FedLine Solutions (monthly) 

FedMail 105 ............................................................................................................................................................................... $100.00. 

FedLine Exchange 105 .............................................................................................................................................................. 40.00. 

includes: 

E-Payments Directory (via manual download).

FedLine Exchange Premier 105 ................................................................................................................................................. 125.00. 

includes: 

FedLine Exchange package.

E-Payments Directory (via automated download).

FedLine Web 106 ....................................................................................................................................................................... 110.00. 

FedLine Web Plus 106 ............................................................................................................................................................... 160.00. 

FedLine Web Premier 106 ....................................................................................................................................................... 200.00 

includes: 

Services included in the FedLine Web Plus package.

Check File Automation.

FedLine Advantage 106 107 ........................................................................................................................................................ 415.00. 

FedLine Advantage Plus 106 107 ................................................................................................................................................ 460.00. 

FedLine Advantage Premier 106 107 .......................................................................................................................................... 570.00. 

Includes: 

FedLine Advantage Plus package.

Two VPN devices.

Fedwire Funds FedPayments Manager Import/Export (more than 250 Fedwire transactions or more than one routing 

number in a given month).

FedTransaction Analyzer (more than 250 Fedwire transactions or more than one routing number per month).

FedLine Command Plus .......................................................................................................................................................... 1,035.00. 

FedLine Direct Plus 108 ............................................................................................................................................................. 5,500.00. 

FedLine Direct Premier 108 ....................................................................................................................................................... 10,500.00. 

includes: 

Services included in the FedLine Direct Plus package.


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82373 

FEDLINE® 2024 FEE SCHEDULE—Continued 

[Effective January 2, 2024. Bold indicates changes from 2023 prices. ] 

Fee 

Two 2 Mbps dedicated WAN Connections.

One Network Diversity.

Two VPN devices.

A la carte options (monthly) 109

Electronic Access: 

FedMail—FedLine Exchange Subscribers—Pack of 5 .................................................................................................... 25.00. 

FedLine Subscribers—Pack of 5 ...................................................................................................................................... 100.00. 

Additional VPNs 110 ........................................................................................................................................................... 100.00. 

Additional 2 Mbps WAN connection 108 ............................................................................................................................ 3,000.00. 

WAN Connection Upgrade 

10 Mbps 111 ................................................................................................................................................................ 1,700.00. 

30 Mbps 111 ................................................................................................................................................................ 3,000.00. 

50 Mbps 111 ................................................................................................................................................................ 4,000.00. 

100 Mbps 111 .............................................................................................................................................................. 7,000.00. 

200 Mbps 111 .............................................................................................................................................................. 11,000.00. 

FedLine International Setup (one-time fee) ...................................................................................................................... 5,000.00. 

FedLine Custom Implementation Fee (one-time fee) 112 .................................................................................................. 2,500–5,000. 

Network Diversity .............................................................................................................................................................. 2,500.00. 

FedMail Email (for customers with FedLine Web and above) 113 .............................................................................. 100.00 

VPN Device Modification (one-time fee) ........................................................................................................................... 200.00. 

VPN Device Missed Activation Appointment (one-time fee) ............................................................................................. 175.00. 

VPN Device Expedited Hardware Surcharge (one-time fee) ........................................................................................... 100.00. 

VPN Device Replacement or Move (one-time fee) .......................................................................................................... 300.00. 

E-Payments Automated Download Codes (Add’l Codes—Pack of 5) 114 ........................................................................ 75.00/month. 

E-Payments Automated Download Codes (Add’l Codes—Pack of 20) 114 ...................................................................... 150.00/month. 

E-Payments Automated Download Codes (Add’l Codes—Pack of 50) 114 ...................................................................... 300.00/month. 

E-Payments Automated Download Codes (Add’l Codes—Pack of 100) 114 .................................................................... 500.00/month. 

E-Payments Automated Download Codes (Add’l Codes—Pack of 250) 114 .................................................................... 1,000.00/month. 

E-Payments Automated Download Codes (Add’l Codes—>250) 114 ................................................................................ 2,000.00/month. 

Daily Statement of Account Activity and Monthly Statement of Service Charges (monthly): 115 116

End-of-Day Financial Institution Reconcilement Data (FIRD) File ............................................................................. 200.00. 

Statement of Account Spreadsheet File (SASF) .......................................................................................................... 200.00. 

Cash Management Service (CMS) Plus and Intra-day Service (monthly): 

Cash Management System (CMS) Plus—Own report—up to 12 files with 117.

no OSRTN, respondent/sub-account activity ........................................................................................................ 75.00. 

Up to nine OSRTNs, respondents and/or sub-accounts ..................................................................................... 150.00. 

10–50 OSRTNs, respondents and/or sub-accounts ............................................................................................. 300.00. 

51–100 OSRTNs, respondents and/or sub-accounts ........................................................................................... 600.00. 

101–500 OSRTNs, respondents and/or sub-accounts ......................................................................................... 900.00. 

>500 OSRTNs, respondents and/or sub-accounts ............................................................................................... 1,200.00. 

Intra-day Download Search Results in Spreadsheet Format (with AMI) 118 ............................................................. 200.00. 

Other: 

Replacement Copies 119.

Daily Statement of Account ....................................................................................................................................... 10.00/copy. 

Monthly Statement of Service Charges ..................................................................................................................... 10.00/copy. 

Vendor Pass-Through Fee ................................................................................................................................................ various. 

Electronic Access Credit Adjustment ................................................................................................................................ various. 

Electronic Access Debit Adjustment ................................................................................................................................. various. 


ddrumheller on DSK120RN23PROD with NOTICES1
82374 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 

41Any ODFI incurring less than $50 for the 

following fees will be charged a variable amount to 

reach the minimum: Forward value and non-value 

item origination fees, and FedGlobal ACH 

origination surcharges. 

42Any RDFI not originating forward value and 

non-value items and incurring less than $40 in 

receipt fees will be charged a variable amount to 

reach the minimum. Any RDFI that originates 

forward value and non-value items incurring less 

than $50 in forward value and nonvalue item 

origination fees will only be charged a variable 

amount to reach the minimum monthly origination 

fee. 

43This surcharge is assessed on all forward items 

that qualify for same-day processing and settlement 

and is incremental to the standard origination item 

fee. 

44The fee includes the item and addenda fees in 

addition to the conversion fee. 

45The fee includes the item and addenda fees in 

addition to the conversion fee. Reserve Banks also 

assess a $45 fee for every government paper return/ 

NOC they process. 

46Origination volumes at these levels qualify for 

a waterfall discount that includes all FedACH 

origination items. 

47Origination discounts based on monthly billed 

receipt volume apply only to those items received 

by FedACH receiving points and are available only 

to Premium Receivers. 

48RDFIs receiving through FedACH less than 90 

percent of their FedACH-originated items. 

49This per-item discount is a reduction to the 

standard receipt fees listed in this fee schedule. 

50Receipt volumes at these levels qualify for a 

waterfall discount that includes all FedACH receipt 

items. 

51RDFIs receiving through FedACH at least 90 

percent of their FedACH-originated items, but less 

than 90 percent of all of their ACH items originated 

through any operator. 

52This per-item discount is a reduction to the 

standard receipt fees listed in this fee schedule. 

53Receipt volumes at these levels qualify for a 

waterfall discount which includes all FedACH 

receipt items. 

54RDFIs receiving through FedACH at least 90 

percent of all of their ACH items originated through 

any operator. 

55This per-item discount is a reduction to the 

standard receipt fees listed in this fee schedule. 

56Receipt volumes at these levels qualify for a 

waterfall discount which includes all FedACH 

receipt items. 

57Criteria may be set for both the Origination 

Monitoring Service and the RDFI Alert Service. 

Subscribers with no criteria set up will be assessed 

the $45 monthly package fee. 

58Monthly commercial receipt volume is 

calculated based on combined volume of subscribed 

RTNs in an account family. 

59Premier reports generated on demand are 

subject to the package/tiered fees plus a surcharge. 

60Premier reports generated on demand are 

subject to the package/tiered fees plus a surcharge. 

61The fee applies to RTNs that have received or 

originated FedACH transactions during a month. 

Institutions that receive only U.S. government 

transactions or that elect to use a private-sector 

operator exclusively are not assessed the fee. 

62This surcharge is assessed to any RTN that 

originates at least one item meeting the criteria for 

same-day processing and settlement in a given 

month. 

63The fee is applied to any RTN with activity 

during a month, including RTNs of institutions that 

elect to use a private-sector operator exclusively but 

also have items routed to or from customers that 

access the ACH network through FedACH. This fee 

does not apply to RTNs that use the Reserve Banks 

for only U.S. government transactions. 

64Fee will be assessed only when automated 

NOCs are generated. 

65Limited services are offered in contingency 

situations. 

66The fees and credits listed are collected from 

the ODFI and credited to Nacha (admin network) 

or to the RDFI (same-day entry and unauthorized 

entry) in accordance with the ACH Rules. 

67Nacha’s monthly network administration fee 

for 2023 was misstated in the FEDERAL REGISTER

Notice published on November 3, 2022. As 

announced by Nacha on September 22, 2022, 

effective January 1, 2023, Nacha is increasing the 

monthly network administration fee that the 

Federal Reserve collects on its behalf to $28.67/ 

RTN/month ($344/RTN/year), as correctly stated on 

this fee schedule. 

68The international fees and surcharges vary from 

country to country as these are negotiated with each 

international gateway operator. 

69A single monthly fee based on total FedGlobal 

ACH Payments origination volume. 

70This per-item surcharge is in addition to the 

standard domestic origination fees listed in this fee 

schedule. 

71This per-item surcharge is in addition to the 

standard domestic receipt fees listed in this fee 

schedule. 

72U.S. ODFIs are responsible for any 

investigation fees should they be assessed by 

foreign RDFIs or downstream payment participants. 

73The monthly fee is rolled up to the parent DI 

level, such that a DI that opts into the FedACH 

Exception Resolution Service under two separate 

RTNs would pay a single monthly fee based on the 

total number of cases opened for their two RTNs 

combined. 

74A financial institution may enroll in the 

Service as an Offline Service Participant by 

designating the Reserve Bank to access and use the 

functionality of the application on behalf of the 

Offline Participant. 

75Federal Reserve Financial Services offers a fiveyear discount program to financial institutions that 

receive at least 5 million items per month through 

FedACH and meet the qualifications for Premium 

Receiver Level One or Level Two status. 

76The incentive discounts apply to the volume 

that exceeds 60 percent of a customer’s historic 

benchmark volume. Historic benchmark volume is 

based on a customer’s average daily activity over 

the previous five calendar years. If a customer has 

fewer than five full calendar years of previous 

activity, its historic benchmark volume is based on 

its daily activity for as many full calendar years of 

data as are available. If a customer has less than one 

year of past activity, then the customer qualifies 

automatically for incentive discounts for the year. 

The applicable incentive discounts are as follows: 

$0.752 for transfers up to 14,000; $0.232 for 

transfers 14,001 to 90,000; and $0.152 for transfers 

over 90,000. 

77This surcharge applies to originators of 

transfers that are processed by the Reserve Banks 

after 5:00 p.m. ET. 

78This fee is charged to any Fedwire Funds 

participant that originates a transfer message via the 

FedPayments Manager Funds tool and has the 

import/export processing option setting active at 

any point during the month. 

79Payment Notification and End-of-Day 

Origination surcharges apply to each Fedwire funds 

transfer message. 

80Provided on billing statement for informational 

purposes only. 

81This charge is assessed to settlement 

arrangements that use the Fedwire® Funds Service 

to affect the settlement of interbank obligations (as 

opposed to those that use the National Settlement 

Service). With respect to such special settlement 

arrangements, other charges may be assessed for 

each funds transfer into or out of the accounts used 

in connection with such arrangements. 

82An organization that is a settlement agent may 

be able to use the National Settlement Service 

offline service if it is experiencing an operational 

event that prevents the transmission of settlement 

files via its electronic connection to the Federal 

Reserve Banks. The Federal Reserve Banks have 

limited capacity to process offline settlement files. 

As a result, while the Federal Reserve Banks use 

best efforts to process offline settlement file 

submissions, there is no guarantee that an offline 

settlement file, in particular one that is submitted 

late in the operating day or that contains a large 

number of entries, will be accepted for processing. 

Only those persons identified as authorized 

individuals on the National Settlement Service 04 

Agent Contact Form may submit offline settlement 

files. For questions related to the National 

Settlement Service offline service, please contact 

National Settlement Service Central Support 

Service Staff (CSSS) at 800–758–9403, or via email 

at csss.staff@ny.frb.org. 

83Any settlement arrangement that accrues less 

than $60 during a calendar month will be assessed 

a variable amount to reach the minimum monthly 

fee. 

84Restricted Securities Accounts maintained by 

the Reserve Banks under the Loans and Discounts 

program and the 31 CFR part 202 program are not 

assessed for monthly account maintenance fees or 

fees for Transfers of Book-Entry Securities to or 

from such Restricted Securities Accounts. 

Restricted Securities Accounts maintained by the 

Reserve Banks under the 31 CFR part 225 program 

are subject to monthly account maintenance fees 

but not fees for Transfers of Book-Entry Securities 

to or from such Restricted Securities Accounts. 

85These fees are set by the Federal Reserve Banks. 

86This surcharge is set by the Federal Reserve 

Banks. It is in addition to any basic transfer or 

reversal fee. 

87Restricted Securities Accounts maintained by 

the Reserve Banks under the Loans and Discounts 

program and the 31 CFR part 202 program are not 

assessed for monthly account maintenance fees or 

fees for Transfers of Book-Entry Securities to or 

from such Restricted Securities Accounts. 

Restricted Securities Accounts maintained by the 

Reserve Banks under the 31 CFR part 225 program 

are subject to monthly account maintenance fees 

but not fees for Transfers of Book-Entry Securities 

to or from such Restricted Securities Accounts. 

88These fees are set by the Federal Reserve Banks. 

89These fees are set by the Federal Reserve Banks. 

90The U.S. Department of the Treasury absorbs 

the cost of monthly account maintenance for 

securities accounts that contain only Treasury 

securities and reimburses the Federal Reserve 

Banks. 

91The U.S. Department of the Treasury absorbs 

the cost of monthly issue maintenance for custody 

holdings of Treasury securities and reimburses the 

Federal Reserve Banks. 

92These fees are set by the Federal Reserve Banks. 

93Automated Claim Adjustment Process (ACAP) 

fees apply to all ACAP-eligible security types. Phase 

2 of the ACAP enhancement project will include 

expanding ACAP tracking to all coupon-paying 

securities issued over the Fedwire Securities 

Service and adding securities lending as a 

transaction type. For information about the ACAP 

enhancement project, please visit: https://

www.frbservices.org/resources/financial-services/ 

securities/acap. 

94Participants are charged the Repo Position 

Maintenance Fee for both a Repo-Out balance and 

a Repo-In balance. These fees will be assessed every 

business day. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 82375 

95Participants are charged the Securities Lending 

Position Maintenance Fee for both a Securities 

Borrowed balance and a Securities Lent balance. 

These fees will be assessed every business day. 

Securities lending positions will be available when 

Phase 2 of the ACAP enhancement project is 

implemented. For information about the ACAP 

enhancement project, please visit: https://

www.frbservices.org/resources/financial-services/ 

securities/acap/. 

96This fee is set by and remitted to the 

Government National Mortgage Association 

(GNMA). 

97The Federal Reserve Banks charge participants 

a Joint Custody Origination Surcharge for both 

Agency and Treasury securities. 

98These fees are set by the Federal Reserve Banks. 

99These fees are set by the Federal Reserve Banks. 

100FedComplete packages are all-electronic 

service options that bundle payment services with 

an access solution for one monthly fee. 

101FedComplete customers that use the email 

service would be charged the FedMail Email a la 

carte fee and for all FedMail-FedLine Exchange 

Subscriber 5-packs. 

102Packages with an ‘‘A’’ include the FedLine 

Advantage channel. 

103Per-item surcharges are in addition to the 

standard fees listed in the applicable priced 

services fee schedules. 

104FedComplete customers will be charged $4 for 

each FedForward cash letter over the monthly 

package threshold. This activity will appear under 

billing code 51998 in Service Area 1521 on a 

month-lagged basis. 

105FedMail and FedLine Exchange packages do 

not include user credentials, which are required to 

access priced services and certain informational 

services. Credentials are sold separately in packs of 

five via the FedMail-FedLine Exchange Subscriber 

5-pack. 

106FedLine Web and Advantage packages do not 

include user credentials, which are required to 

access priced services and certain informational 

services. Credentials are sold separately in packs of 

five via the FedLine Subscriber 5-pack. 

107FedLine Solutions package fees associated 

with establishing a new connection or upgrading a 

current connection to FedLine Advantage® for the 

FedNow® Service will be credited up to twelve 

months. 

108Early termination fees and/or expedited order 

fees may apply to all FedLine Direct packages and 

FedLine Direct a` la carte options. 

109These add-on services can be purchased only 

with a FedLine Solution. 

110Additional VPNs are available for FedLine 

Advantage, FedLine Command, and FedLine Direct 

packages only. All customers will need to replace 

their existing VPN device with the new VPN device. 

Effective October 1, 2023, customers who have not 

started migration will be assessed a $400 monthly 

fee under billing code 22411 until migration is 

complete. 

111Fee is in addition to the FedLine Direct 

package fees or Additional 2Mbps WAN Connection 

fee. 

112The FedLine Custom Implementation Fee is 

$2,500 or $5,000 based on the complexity of the 

setup. 

113Available only to customers with a priced 

FedLine package. 

114Five download codes are included at no cost 

in all Plus and Premier packages. 

115Available for FedLine Web Plus, FedLine Web 

Premier, FedLine Advantage Plus, and FedLine 

Advantage Premier packages. It is also available for 

no extra fee in FedLine Command Plus and Direct 

packages. 

116The End of Day Financial Institution 

Reconcilement Data (FIRD) and Statement of 

Account Spreadsheet File (SASF) are available for 

Master accounts only. 

117Available with FedLine® Plus and Premier 

packages. 

118Available for FedLine Web Plus and Premier 

packages. Available for no extra fee in FedLine 

Advantage and higher packages. 

119Charging the $10 Replacement Copy Fee is at 

the discretion of Reserve Banks. 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2023–25925 Filed 11–22–23; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

[CMS–1817–NC] 

Medicare and Medicaid Programs; 

Announcement of Application From a 

Hospital Requesting Waiver for Organ 

Procurement Service Area 

AGENCY: Centers for Medicare & 

Medicaid Services (CMS), HHS. 

ACTION: Notice with request for 

comment. 

SUMMARY: This notice acknowledges the 

receipt of an application from a hospital 

that has requested a waiver of statutory 

requirements that would otherwise 

require the hospital to enter into an 

agreement with its designated organ 

procurement organization (OPO). This 

notice requests comments from OPOs 

and the general public for our 

consideration in determining whether 

we should grant the requested waiver. 

DATES: Comment date: To be assured 

consideration, comments must be 

received at one of the addresses 

provided below, by January 23, 2024. 

ADDRESSES: In commenting, refer to file 

code CMS–1817–NC. 

Comments, including mass comment 

submissions, must be submitted in one 

of the following three ways (please 

choose only one of the ways listed): 

1. Electronically. You may submit 

electronic comments on this regulation 

to https://www.regulations.gov. Follow 

the ‘‘Submit a comment’’ instructions. 

2. By regular mail. You may mail 

written comments to the following 

address ONLY: Centers for Medicare & 

Medicaid Services, Department of 

Health and Human Services, Attention: 

CMS–1817–NC, P.O. Box 8010, 

Baltimore, MD 21244–8010. 

Please allow sufficient time for mailed 

comments to be received before the 

close of the comment period. 

3. By express or overnight mail. You 

may send written comments to the 

following address ONLY: Centers for 

Medicare & Medicaid Services, 

Department of Health and Human 

Services, Attention: CMS–1817–NC, 

Mail Stop C4–26–05, 7500 Security 

Boulevard, Baltimore, MD 21244–1850. 

For information on viewing public 

comments, see the beginning of the 

SUPPLEMENTARY INFORMATION section. 

FOR FURTHER INFORMATION CONTACT: 

Randy Throndset, (410) 786–0131. 

SUPPLEMENTARY INFORMATION: Inspection 

of Public Comments: All comments 

received before the close of the 

comment period are available for 

viewing by the public, including any 

personally identifiable or confidential 

business information that is included in 

a comment. We post all comments 

received before the close of the 

comment period on the following 

website as soon as possible after they 

have been received: https://

www.regulations.gov. Follow the search 

instructions on that website to view 

public comments. CMS will not post on 

Regulations.gov public comments that 

make threats to individuals or 

institutions or suggest that the 

individual will take actions to harm the 

individual. CMS continues to encourage 

individuals not to submit duplicative 

comments. We will post acceptable 

comments from multiple unique 

commenters even if the content is 

identical or nearly identical to other 

comments. 

I. Background 

Organ Procurement Organizations 

(OPOs) are not-for-profit organizations 

that are responsible for the 

procurement, preservation, and 

transport of organs to transplant centers 

throughout the country. Qualified OPOs 

are designated by the Centers for 

Medicare & Medicaid Services (CMS) to 

recover or procure organs in CMSdefined exclusive geographic service 

areas, pursuant to section 371(b)(1) of 

the Public Health Service Act (42 U.S.C. 

273(b)(1)) and our regulations at 42 CFR 

486.306. Once an OPO has been 

designated for an area, hospitals in that 

area that participate in Medicare and 

Medicaid are required to work with that 

OPO in providing organs for transplant, 

pursuant to section 1138(a)(1)(C) of the 

Social Security Act (the Act) and our 

regulations at 42 CFR 482.45. 

Section 1138(a)(1)(A)(iii) of the Act 

provides that a hospital must establish 

protocols, which require the hospital to 

notify the designated OPO (for the 

service area in which it is located) of 

potential organ donors. Under section 

1138(a)(1)(C) of the Act, every hospital 

must have an agreement only with its 


ddrumheller on DSK120RN23PROD with NOTICES1