```

[Federal Register Volume 89, Number 229 (Wednesday, November 27, 2024)]
[Notices]
[Pages 93584-93602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27831]

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FEDERAL RESERVE SYSTEM

[Docket No. OP-1862]

Federal Reserve Bank Services

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
has approved the private-sector adjustment factor (PSAF) for 2025 of 
$31.9 million and the 2025 fee schedules for Federal Reserve priced 
services and electronic access. These actions were taken in

[[Page 93585]]

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 1, 2025.

FOR FURTHER INFORMATION CONTACT: For questions regarding the fee 
schedules: Ian Spear, Deputy Associate Director, (202) 452-3959; Anjana 
Ravi, Manager, (202) 530-6286; Division of Reserve Bank Operations and 
Payment Systems. For questions regarding the PSAF: Casey Clark, 
Associate Director, (202) 912-7978; Jamie Noonan, Assistant Director, 
(202) 530-6296; Grace Milbank, Lead Financial Institution Policy 
Analyst, (202) 263-4828; 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 2025 fee 
schedules for 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 2025 Price Changes

    A. Overview--Each year, as required by the Monetary Control Act of 
1980 (MCA), 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).
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    \1\ See 12 U.S.C. 248a. See also Principles for the Pricing of 
Federal Reserve Bank Services, 46 FR 1338, 1339 (Jan. 6, 1981), 
available at https://www.federalreserve.gov/paymentsystems/pfs_principles.htm. Although 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 $548.6 million cumulative reduction in 
equity related to the priced services' benefit plans through 2023. 
Including this cumulative reduction in equity from 2014 to 2023 
results in cost recovery of 102.6 percent for the 10-year period. 
This measure of long-run cost recovery is also published in the 
Board's Annual Report.
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    From 2014 through 2023, the Reserve Banks recovered 102.6 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[supreg] Funds Service, the 
National Settlement Service (NSS), and the Fedwire[supreg] Securities 
Service achieved full cost recovery. The FedACH[supreg] Service 
achieved 99.0 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.\2\
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    \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 longer-
run improvements in the ACH system, and the expectation of achieving 
full cost recovery for the FedACH Service over the long run.
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    In its 2019 notice entitled Federal Reserve Actions to Support 
Interbank Settlement of Instant Payments (``2019 Notice''), the Board 
communicated that it expects the FedNow[supreg] 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 are not expected to initially have stable volumes, costs, and 
revenues.\3\ Thus, FedNow Service revenue and expenses are excluded 
from the overall performance projections. The FedNow Service is 
discussed in section G.
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    \3\ Application 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 
providing the service. See Federal Reserve Actions to Support 
Interbank Settlement of Instant Payments, 84 FR 39297, (Aug. 9, 
2019).
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    Table 1 summarizes 2023 actual, 2024 forecasted, and 2025 budgeted 
annual cost recovery rates for all mature priced services. Cost 
recovery is forecasted to be 108.8 percent in 2024 and budgeted to be 
104.1 percent in 2025.

               Table 1--Aggregate Mature Priced Services Pro Forma Cost and Revenue Performance a
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Recovery rate
             Year                   Revenue      Total expense    Net income     Targeted ROE    after targeted
                                                                     (ROE)                           ROE (%)
                                         1 \b\           2 \c\         3 [1-2]           4 \d\     5 \e\ [1/(2 +
                                                                                                             4)]
----------------------------------------------------------------------------------------------------------------
2023 (actual).................           507.3           467.1            40.1             8.4             106.7
2024 (forecast)...............           520.9           468.9            52.0             9.7             108.8
2025 (budget).................           531.7           499.8            31.9            10.8             104.1
----------------------------------------------------------------------------------------------------------------
\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. For 2025, the budgeted revenue assumes
  implementation of the fee changes.
\c\ The 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.
\d\ Targeted ROE is the after-tax ROE included in the PSAF.
\e\ The 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.

[[Page 93586]]

    Table 2 provides an overview of cost recovery budgets, forecasts, 
and performance for the 10-year period from 2014 to 2023, 2023 actual, 
2024 budget, 2024 forecast, and 2025 budget by mature priced service.

                                  Table 2--Mature Priced Services Cost Recovery
                                                    [Percent]
----------------------------------------------------------------------------------------------------------------
                                                                    2024 Budget                     2025 Budget
         Priced service              2014-2023      2023 Actual         \a\        2024 Forecast        \b\
----------------------------------------------------------------------------------------------------------------
All mature services.............           102.6           106.7           103.1           108.8           104.1
Check...........................           106.9           102.9            95.5           102.9            97.5
FedACH..........................            99.0           108.8           106.0           109.4           106.0
Fedwire Funds and NSS...........           101.9           103.1           103.2           108.3           103.2
Fedwire Securities..............           105.7           122.3           110.9           123.2           115.7
----------------------------------------------------------------------------------------------------------------
\a\ The 2024 budget figures reflect the final budgets as approved by the Board in December 2023. See Board of
  Governors of the Federal Reserve System, 2024 Federal Reserve Banks Budgets, https://www.federalreserve.gov/foia/files/2024ReserveBankBudgets.pdf.
\b\ The 2025 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 2024.

    1. 2024 Forecasted Performance--The Reserve Banks forecast that 
they will recover 108.8 percent of the costs of providing mature priced 
services in 2024, including total expense and targeted ROE, compared 
with a 2024 budgeted recovery rate of 103.1 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 $52.0 million, compared 
with the targeted ROE of $9.7 million. The Reserve Banks forecast that 
all mature services will achieve full cost recovery in 2024.
    2. 2025 Private-Sector Adjustment Factor--The 2025 PSAF for Reserve 
Bank mature priced services is $31.9 million.\4\ This amount represents 
an increase of $2.7 million from the 2024 PSAF of $29.2 million. This 
increase is attributable to a $2.1 million increase in the cost of 
capital primarily driven by higher short-term debt and higher return on 
equity and a $0.6 million increase in sales tax.
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    \4\ The FedNow Service launched in July 2023. Inclusive of the 
FedNow Service, the PSAF increases to $42.3 million for 2025. Per 
its 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 2025.
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    3. 2025 Projected Performance--The Reserve Banks project a mature 
priced services cost recovery rate of 104.1 percent in 2025, with a net 
gain of $31.9 million and targeted ROE of $10.8 million. The Reserve 
Banks project that each of the individual mature service lines will 
achieve full cost recovery in 2025 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. 2025 Pricing--The following summarizes the Reserve Banks' 
changes to fee schedules for priced services in 2025. For the mature 
services, these changes collectively are an average price increase of 
2.8 percent. The price changes outlined below are in line with the 
Reserve Banks' strategy to offset rising costs, diversify revenue 
sources, and continue to reduce pricing volatility.

Check Services

    The Reserve Banks will increase participation fees, 
FedImage[supreg] fees, and certain forward paper and return paper fees. 
These changes will increase fixed fee revenue stability in light of 
declining check volumes.

FedACH Service

    The Reserve Banks will increase participation fees, origination and 
receipt minimum fees, and FedPayments Reporter[supreg] Service fees. 
These changes will help address ongoing operational costs, provide 
greater revenue stability, and account for the additional business 
value provided by the service enhancements over the last several years.

Fedwire Funds Service

    The Reserve Banks will increase the Fedwire Funds participation 
fee, the transfer fee for all three tiers, and the FedPayments[supreg] 
Manager Import/Export fee. These increases will account for projected 
declining volume growth, coupled with ongoing technology enhancements 
and higher operating costs.\5\ In addition, the Fedwire Funds Service 
will introduce a new fixed fee that will serve to better align fees 
with customer usage as well as address challenges associated with 
revenue volatility.
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    \5\ Historically, Fedwire Funds volume has evolved in line with 
GDP forecasts.
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National Settlement Service

    The Reserve Banks will increase the National Settlement Service 
per-file and per-entry fees. These changes will help address rising 
operational costs.

Fedwire Securities Service

    The Reserve Banks will maintain prices at existing levels for all 
Fedwire Securities priced services.

FedNow Service

    The Reserve Banks will modify the Customer Credit Transfer, 
Customer Credit Transfer Return, and Request for Payment fee components 
of the FedNow Service to exclude ``on-us'' transactions sent from and 
received at the same financial institution.\6\ This adjustment will 
both align with prevailing market practices and reduce inefficient off-
network transaction activity. All other price points and discounts in 
the FedNow Service's fee schedule from the previous year will be 
maintained in 2025.
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    \6\ These fee modifications will take place at the parent 
financial institution level, as defined in the Reserve Banks' Global 
Customer Directory. ``On-us'' transactions include those made by the 
same financial institution, even if the financial institution uses 
multiple Routing Transit Numbers (RTNs).
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FedLine[supreg] Solutions

    The Reserve Banks will increase the monthly fees for the FedLine 
Direct[supreg] Solution, FedLine Command[supreg] Solution, and 
FedComplete[supreg] Packages. These price modifications account for 
enhancements to services and rising operational costs. The Reserve 
Banks are also discontinuing FedComplete Premier and FedLine 
Exchange[supreg] to streamline the FedLine product suite in response to 
a declining customer base and to simplify internal operating, 
servicing, and billing processes. Lastly, the Reserve Banks are 
preparing to

[[Page 93587]]

implement a fee structure for services offered via Application 
Programming Interfaces (APIs) in 2025.
    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.\7\ 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.
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    \7\ Data for U.S. publicly traded firms is from the Standard and 
Poor's Compustat[supreg] 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.
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    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.\8\
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    \8\ The pension assets are netted with the pension liabilities 
and reported as a net asset or net liability as required by ASC 715.
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    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 state income tax rates vary, and various 
credits and deductions can apply at the federal or state level, 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.\9\ 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 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.
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    \9\ The FDIC rule 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).
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    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 (CPMI) and the Technical Committee of the 
International Organization of Securities Commissions (IOSCO) known as 
the Principles for Financial Market Infrastructures.\10\ 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 PSR policy, 
consistent with relevant guidance and the requirements in the MCA.\11\ 
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 wind-down 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.\12\ 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 2025 
budget, six months of current operating expenses would be $71.7 
million. In 2025, equity was sufficient to meet the FDIC capital 
requirements and $6.7 million of equity was imputed to meet the PSR 
policy requirement.
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    \10\ See Board of Governors of the Federal Reserve System, 
Federal Reserve Policy on Payment System Risk, https://www.federalreserve.gov/paymentsystems/files/psr_policy.pdf. See also 
CPMI-IOSCO, Principles for Financial Market Infrastructures (April 
2012), https://www.bis.org/cpmi/publ/d101a.pdf.
    \11\ Certain 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 section I.B.1.a of the PSR policy.
    \12\ This 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.
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    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

[[Page 93588]]

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 2025 PSAF is $31.9 million, compared with $29.2 million in 
2024. The increase of $2.7 million is attributable to a net $2.1 
million increase in the cost of capital and a $0.6 million increase in 
sales tax. The net $2.1 million increase in cost of capital is 
primarily driven by a $1.3 million increase in ROE imputed to meet the 
PSR policy requirements and higher short-term debt resulting in a $0.5 
million increase in cost of debt.
    The PSAF expense of $31.9 million, detailed in Table 5, includes 
$19.8 million for capital funding, $7.6 million for Board of Governors' 
expense, and $4.5 million in sales tax expense.
    As shown in Table 3, 2025 total assets of $890.3 million increased 
by $74.2 million from 2024. The net increase in total assets includes 
an additional $90.7 million in imputed investments and short-term 
assets partially offset by a $16.5 million decrease in long-term 
assets.
    The net increase of $90.7 million primarily consists of a $80.8 
million increase in the imputed investments and a $9.9 million increase 
driven by short-term assets, The imputed investment increase reflects a 
$74 million increase from float \13\ and a $6.7 million increase to 
comply with the PSR policy. The $9.9 million increase in short-term 
assets is driven by an increase in prepaid expenses.
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    \13\ Credit 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.
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    The $16.5 million decrease in the long-term assets is primarily 
driven by a $38.0 million decrease in the net pension asset, partially 
offset by a $20.3 million increase in premises, furniture and 
equipment, and software and leasehold improvements.
    The capital structure of the 2025 pro forma balance sheet, provided 
in Table 4, is composed of equity of $71.7 million, or 12.6 percent of 
the 2025 risk-weighted assets detailed in Table 6, and long-term debt 
of $96.1 million. The 2025 capital structure aligns with that of 2024, 
which was composed of $68.5 million of equity and $100.3 million of 
long-term debt. As shown in Table 5, the 2025 initially imputed equity 
required to fund assets and meet the publicly traded firm model capital 
requirements is $65.0 million. As long-term assets are marginally 
greater than long-term liabilities, long-term debt of $96.1 million was 
imputed at the observed market ratio of 59.7 percent. The equity of 
$65.0 million was adequate to meet the FDIC capital requirements for a 
well-capitalized institution. Additional equity of $6.7 million was 
imputed to satisfy PSR policy requirements.
    The net accumulated other comprehensive loss is $563.3 million, 
compared with $551.0 million in 2024. The $12.3 million increase is 
primarily attributable to a lower 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 well-capitalized institution.

      Table 3--Comparison of Pro Forma Balance Sheets for Budgeted Federal Reserve Mature Priced Services a
                                [Millions of dollars--projected average for year]
----------------------------------------------------------------------------------------------------------------
                                                                       2025            2024           Change
----------------------------------------------------------------------------------------------------------------
Short-term assets:
    Receivables.................................................          $ 44.3          $ 41.8           $ 2.5
    Inventory...................................................             0.4             0.2             0.2
    Prepaid expenses............................................            34.2            24.0            10.2
    Items in process of collection \13\.........................            58.0            61.0           (3.0)
                                                                 -----------------------------------------------
        Total short-term assets.................................           136.9           127.0             9.9
Imputed investments: \14\                                         ..............  ..............  ..............
    Imputed investment in Treasury securities...................             6.8  ..............             6.8
    Imputed investment in Fed Funds.............................           293.0           219.0            74.0
                                                                 -----------------------------------------------
        Total imputed investments...............................           299.8           219.0            80.8
Long-term assets:                                                 ..............  ..............  ..............
    Premises \15\ *.............................................           105.3            99.4             5.9
    Furniture and equipment.....................................            60.8            53.9             6.9
    Software and leasehold improvements.........................            74.5            67.0             7.5
    Net pension asset...........................................            82.4           120.4          (38.0)
    Deferred tax asset..........................................           130.6           129.4             1.2
                                                                 -----------------------------------------------
        Total long-term assets..................................           453.6           470.1          (16.5)
----------------------------------------------------------------------------------------------------------------
            Total assets........................................           890.3           816.1            74.2
Short-term liabilities:
    Deferred credit items.......................................           351.0           280.0            71.0
    Short-term debt.............................................            42.2            32.7             9.5
    Short-term payables.........................................            36.8            33.4             3.4
----------------------------------------------------------------------------------------------------------------
        Total short-term liabilities............................           430.0           346.0            84.0
Long-term liabilities:
    Postemployment/postretirement benefits and net pension                 292.5           301.2           (8.7)
     liabilities \16\...........................................
    Long term debt..............................................            96.1           100.3           (4.2)
                                                                 -----------------------------------------------
        Total liabilities.......................................           818.6           747.6            71.0
        Equity \17\*............................................            71.7            68.5             3.2
                                                                 -----------------------------------------------

[[Page 93589]]

 
            Total liabilities and equity........................           890.3           816.1            74.2
----------------------------------------------------------------------------------------------------------------
\a\ Calculations in this table and subsequent PSAF tables may be affected by rounding. Excludes amounts related
  to the FedNow Service. * Premises, postemployment/postretirement benefits and net pension liabilities, and
  equity restated for 2024.

     Table 4--Imputed Funding for Mature Priced-Services Assets \a\
                          [Millions of dollars]
------------------------------------------------------------------------
                                               2025            2024
------------------------------------------------------------------------
A. Short-term asset financing:            ..............  ..............
    Short-term assets to be financed:...
        Receivables.....................          $ 44.3          $ 41.8
        Inventory.......................             0.4             0.2
        Prepaid expenses................            34.2            24.0
                                         -------------------------------
            Total short-term assets to              78.9            66.0
             be financed................
        Short-term payables.............            36.8            33.4
    Net short-term assets to be financed            42.2            32.7
    Imputed short-term debt financing               42.2            32.7
     \18\...............................
B. Long-term asset financing:...........  ..............  ..............
    Long-term assets to be financed:....  ..............  ..............
        Premises *......................           105.3            99.4
        Furniture and equipment.........            60.8            53.9
        Software and leasehold                      74.5            67.0
         improvements...................
        Net pension asset...............            82.4           120.4
        Deferred tax asset..............           130.6           129.4
                                         -------------------------------
            Total long-term assets to be           453.6           470.1
             financed...................
        Postemployment/postretirement              292.5           301.2
         benefits and net pension
         liabilities *..................
        Net long-term assets to be                 161.1           168.9
         financed *.....................
        Imputed long-term debt \21\.....            96.1           100.3
        Imputed equity \21\.............            65.0            68.5
                                         -------------------------------
            Total long-term financing *.           161.1           168.9
------------------------------------------------------------------------
\a\ Excludes amounts related to the FedNow Service.
* Premises and postemployment/postretirement benefits and net pension
  liabilities, net long-term assets to be financed and total long-term
  financing restated for 2024.

                         Table 5--Derivation of the PSAF for Mature Priced Services \a\
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                            2025                              2024
                                             -------------------------------------------------------------------
                                                    Debt            Equity            Debt            Equity
----------------------------------------------------------------------------------------------------------------
A. Imputed long-term debt and equity:
    Net long-term assets to finance.........           $ 161.1         $ 161.0           $ 168.9         $ 168.9
    Capital structure observed in market....             59.7%           40.3%             59.4%           40.6%
    Pre-adjusted long-term debt and equity..            $ 96.1          $ 65.0           $ 100.3          $ 68.5
    Equity adjustments: \19\................  ................  ..............  ................  ..............
    Equity to meet capital requirements.....  ................          $ 65.0  ................          $ 68.5
Adjustment to debt and equity funding given   ................  ..............  ................  ..............
 capital requirements \20\..................
Adjusted equity balance.....................  ................          $ 65.0  ................          $ 68.5
Equity to meet capital requirements \21\      ................  ..............  ................  ..............
        Total imputed long-term debt and                  96.1            65.0             100.3            68.5
         equity *...........................
B. Cost of capital:                           ................  ..............  ................  ..............
    Elements of capital costs:..............  ................  ..............  ................  ..............
    Short-term debt \22\....................     $ 42.2 x 5.4%         = $ 2.3     $ 32.7 x 5.4%         = $ 1.8
    Long-term debt \22\.....................     $ 96.1 x 4.4%           = 4.2    $ 100.3 x 4.0%         = $ 4.0
    Equity \23\.............................    $ 65.0 x 18.6%        = $ 12.1    $ 68.5 x 17.4%        = $ 11.9
C. Incremental cost of PSR policy:            ................  ..............  ................  ..............
    Equity to meet policy...................     $ 6.7 x 18.6%         = $ 1.3       $ = x 17.4%           = $ =
D. Other required PSAF costs:                 ................  ..............  ................  ..............
    Sales taxes.............................  ................           $ 4.5  ................           $ 3.9
    Board of Governors expenses.............  ................             7.6  ................             7.6
                                             -------------------------------------------------------------------
                                              ................          $ 12.1  ................          $ 11.5
E. Total PSAF:                                ................          $ 31.9  ................          $ 29.2

[[Page 93590]]

 
    As a percent of assets..................  ................            3.6%  ................            3.6%
    As a percent of expenses................  ................            3.4%  ................            3.6%
F. Tax rates                                  ................          18.91%  ................          18.84%
----------------------------------------------------------------------------------------------------------------
\a\ Excludes amounts related to the FedNow Service.
* Total imputed long-term debt restated for 2024.

          Table 6--Computation of 2025 Capital Adequacy for Federal Reserve Mature Priced Services \a\
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Weighted
                                                                      Assets        Risk weight       assets
----------------------------------------------------------------------------------------------------------------
Imputed investments:                                              ..............  ..............  ..............
    1-Year Treasury securities \24\.............................           $ 6.7             0.0             $ =
    Federal funds \25\..........................................           293.0             0.2            58.6
                                                                 -----------------------------------------------
        Total imputed investments...............................           299.8  ..............            58.9
    Receivables.................................................            44.3             0.2             8.9
    Inventory...................................................             0.4             1.0             0.4
    Prepaid expenses............................................            34.2             1.0            34.2
    Items in process of collection..............................            58.0             0.2            11.6
    Premises....................................................           105.3             1.0           105.3
    Furniture and equipment.....................................            60.8             1.0            60.8
    Software and leasehold improvements.........................            74.5             1.0            74.5
    Pension asset...............................................            82.4             1.0            82.4
    Deferred tax asset..........................................           130.6             1.0           130.6
                                                                 -----------------------------------------------
        Total...................................................           890.3  ..............           567.6
Imputed equity:                                                   ..............  ..............  ..............
    Capital to risk-weighted assets.............................           12.6%  ..............  ..............
    Capital to total assets.....................................            8.1%  ..............  ..............
----------------------------------------------------------------------------------------------------------------
\a\ Excludes amounts related to the FedNow Service.

    C. Check Services--Table 7 shows the 2023 actual, 2024 forecasted, 
and 2025 budgeted cost-recovery performance for commercial check 
services.

                         Table 7--Check Services Pro Forma Cost and Revenue Performance
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Recovery rate
             Year                   Revenue      Total expense    Net income     Targeted ROE    after targeted
                                                                     (ROE)                             ROE
                                             1               2         3 [1-2]               4     5 [1/(2 + 4)]
                               ---------------------------------------------------------------------------------
2023 (actual).................           111.8           107.4             4.4             1.3             102.9
2024 (forecast)...............           110.2           105.0             5.2             2.1             102.9
2025 (budget).................           107.1           107.8           (0.7)             2.1              97.5
----------------------------------------------------------------------------------------------------------------

    1. 2024 Forecast--The Reserve Banks forecast that Check Services 
will recover 102.9 percent of total expenses and targeted ROE, compared 
with a 2024 budgeted recovery rate of 95.5 percent.
    Through August 2024, total commercial forward and total commercial 
return check volumes were 6.8 percent lower and 2.9 percent greater, 
respectively, than they were during the same period last year. For 
full-year 2024, the Reserve Banks estimate that their total forward 
check volume will decline 6.3 percent (compared with a budgeted decline 
of 8.0 percent), and their total return check volume will increase 1.6 
percent (compared with a budgeted decline of 7.0 percent) from 2023 
levels. The Reserve Banks expect that check volumes will continue to 
decline because of ongoing substitution away from checks to other 
payment instruments.
    2. 2025 Pricing--The Reserve Banks expect Check Services to recover 
97.5 percent of total expenses and targeted ROE in 2025. The Reserve 
Banks project revenue to be $107.1 million, a decline of $3.1 million, 
or 2.8 percent from the 2024 forecast. Total expenses for Check 
Services are projected to be $107.8 million, an increase of $2.8 
million, or 2.7 percent, from 2024 forecasted expenses.
    As check volumes continue to decline, the pricing increases are 
intended to help stabilize check revenues, to shift the revenue mix

[[Page 93591]]

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 fees. For the participation fees, Tier 1 will increase by 
$125, Tier 2 will increase by $80, Tier 3 will increase by $50, and 
Tier 4 will increase by $10. 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 through fixed fees. 
Table 8 displayed below shows the 2025-tiered participation fees.

              Table 8--Check 21 Participation Fee Structure
------------------------------------------------------------------------
                      Tier \26\                           Monthly fee
------------------------------------------------------------------------
1...................................................                $550
2...................................................                 340
3...................................................                 215
4...................................................                  90
------------------------------------------------------------------------

    The Reserve Banks will also increase the fees for each of the 
services in the FedImage suite by approximately 10% and merge the Back 
File Conversion and Electronic On-Us services with the FedImage 
Enhanced Truncation service into a single service at the new FedImage 
Enhanced Truncation price point. These changes will better reflect the 
value of services provided to customers and help simplify the services 
in the face of declining volumes. Table 9 below shows the 2025 FedImage 
services fees.
---------------------------------------------------------------------------

    \14\ Consistent with the 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 
$71.7 million. In 2025, $6.7 million of additional equity was 
imputed to meet PSR policy requirements.
    \15\ Includes the allocation of Board of Governors assets to 
priced services of $5.2 million for 2025 and $3.5 million for 2024.
    \16\ Includes the allocation of Board of Governors liabilities 
to priced services of $1.4 million for 2025 and $1.2 million for 
2024.
    \17\ Includes an accumulated other comprehensive loss of $563.3 
million for 2025 and $551.0 million for 2024, 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.
    \18\ 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.
    \19\ 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 2025, the amount of imputed equity met the minimum equity 
requirements for risk-weighted assets.
    \20\ Equity 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.
    \21\ Additional equity in excess of that needed to fund priced 
services assets is offset by an asset balance of imputed investments 
in Treasury securities.
    \22\ Imputed short-term debt and long-term debt are computed in 
Table 4.
    \23\ The 2025 ROE is equal to a risk-free rate plus a risk 
premium (beta * market risk premium). The 2025 after-tax CAPM ROE is 
calculated as 5.52% + (1.0 * 9.54%) = 15.06%. Using a tax rate of 
18.9%, the after-tax ROE is converted into a pretax ROE, which 
results in a pretax ROE of (15.06%/(1-18.9%)) = 18.57%. Calculations 
may be affected by rounding.
    \24\ 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, available at https://www.federalreserve.gov/releases/h15/.
    \25\ The investments are imputed based on the amounts arising 
from the collection of items before providing credit according to 
established availability schedules.
    \26\ This 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.
    \27\ The 2025 fees are not listed for Back File Conversion and 
Electronic On-Us given their consolidation into a single service at 
the new FedImage Enhanced Truncation price point.

                                    Table 9--2025 FedImage Services Fees \27\
----------------------------------------------------------------------------------------------------------------
                                                             2024 Fees                       2025 Fees
                FedImage Services                ---------------------------------------------------------------
                                                     Fixed/CL          Item          Fixed/CL          Item
----------------------------------------------------------------------------------------------------------------
Image Archive:
    30 business day archive.....................  ..............        $ 0.0013  ..............        $ 0.0014
    60 business day archive.....................  ..............          0.0015  ..............          0.0017
    7 Year archive/11 year archive..............  ..............          0.0024  ..............          0.0026
Extended RAID Storage:
    61 days to 6 months.........................  ..............          0.0012  ..............          0.0013
    61 days to 12 months........................  ..............          0.0029  ..............          0.0032
    61 days to 24 months........................  ..............          0.0074  ..............          0.0081
Image Retrievals:
    Subscription Retrieval......................  ..............          0.0032  ..............          0.0035
    Manual FedImage Requests....................  ..............            8.80  ..............           10.00
    Back File Conversion........................            5.17          0.0146  ..............  ..............
Electronic On-Us Service........................            5.17          0.0146            8.80  ..............
Truncation:
    FedImage Enhanced Truncation................            7.98          0.0132            8.80          0.0145
    Return Retrieval............................  ..............            1.54  ..............            1.70
    Custom Sort Fee.............................          192.50  ..............          212.00  ..............
----------------------------------------------------------------------------------------------------------------

    Additionally, the Reserve Banks will increase certain forward paper 
fees. Specifically, the Reserve Banks will increase the Canadian cash 
letter fees for U.S. and Canadian funds by $2.00, the Canadian Amount 
Encoding per-

[[Page 93592]]

item fee by $0.50, and the Mixed Forward Products (domestic paper 
checks) cash letter fee by $2.00 and per-item fee by $0.50. Table 10 
below shows the 2025 forward paper fees.

            Table 10--2025 Forward Paper Check Clearing Fees
------------------------------------------------------------------------
           Forward paper check               Fixed/CL          Item
------------------------------------------------------------------------
Canadian--US Funds......................         $ 19.00       $ 6.50000
Canadian--Canadian Funds................           19.00         6.50000
Canadian Amount Encoding................  ..............         2.50000
Mixed Paper Deposits....................           19.00         5.00000
------------------------------------------------------------------------

    The Reserve Banks will increase certain return fees and will 
implement a new tiered fee structure for the Large Dollar Return Item 
Notification (LDRIN) via the FedLine Web[supreg] Solution. The fees for 
the new LDRIN via FedLine Web tiers will be $3.50 for Tier 1, for 
customers with greater than 5,000 monthly items, and $5.00 for Tier 2, 
for customers with less than 5,000 monthly items. Additionally, the 
Return Item Reclear cash letter fee will increase by $1.00 and the per-
item fee will increase by $0.10. The Qualified and Unqualified Return 
Item cash letter fee will increase by $2.00 and the per-item fee will 
increase by $0.50. Lastly, the return Item Qualification per-item fee 
will increase by $1.00. Table 11 below shows the 2025 return fees and 
new LDRIN via FedLine Web tiers.

                 Table 11--2025 Return Legacy/Paper Fees
------------------------------------------------------------------------
           Return paper check                Fixed/CL          Item
------------------------------------------------------------------------
LDRIN via FedLine for the Web:
    Tier 1 (Greater than 5,000 monthly).  ..............          $ 3.50
    Tier 2 (Less than 5,000 monthly)....  ..............            5.00
Return Item Reclear:                      ..............  ..............
    Level 1 (Items valued up to $100)...          $12.00            0.85
    Level 2 (Items valued up to $250)...           12.00            0.95
    Level 3 (Items valued up to $500)...           12.00            1.05
    Level 4 (Items valued up to $1,000).           12.00            1.15
Qualified Return Items..................           19.00            8.50
Unqualified Return Items................           19.00            8.50
Unencoded Qualification.................  ..............           11.00
------------------------------------------------------------------------

    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 could result in lower than 
anticipated revenue. The Reserve Banks estimate these cumulative price 
changes will result in a 2.8 percent average increase for Check 
Services customers.
    D. FedACH Services--Table 12 shows the 2023 actual, 2024 
forecasted, and 2025 budgeted cost-recovery performance for commercial 
FedACH Services.

                        Table 12--FedACH Services Pro Forma Cost and Revenue Performance
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Recovery rate
             Year                   Revenue      Total expense    Net income     Targeted ROE    after targeted
                                                                     (ROE)                             ROE
                                             1               2         3 [1-2]               4     5 [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2023 (actual).................           183.8           166.5            17.1             2.3             108.8
2024 (forecast)...............           189.0           169.0            20.0             3.7             109.4
2025 (budget).................           194.4           179.7            14.7             3.7             106.0
----------------------------------------------------------------------------------------------------------------

    1. 2024 Forecast--The Reserve Banks forecast that FedACH Services 
will recover 109.4 percent of total expenses and targeted ROE, compared 
with a 2024 budgeted recovery rate of 106.0 percent.
    Through August 2024, FedACH commercial origination and receipt 
volume were 7.7 percent higher and 5.3 percent higher, respectively, 
than they were during the same period last year. For full-year 2024, 
the Reserve Banks estimate that FedACH commercial origination and 
receipt volume will increase 6.7 percent and 4.7 percent, respectively, 
from 2023 levels, compared with a budgeted increase of 3.5 percent for 
both commercial origination and receipt.
    2. 2025 Pricing--The Reserve Banks expect FedACH Services to 
recover 106.0 percent of total expenses and targeted ROE in 2025. The 
Reserve Banks project revenue to be $194.4 million, an increase of $5.4 
million, or 2.9 percent, from the 2024 forecast. Total expenses are 
projected to be $179.8 million, an increase of $10.8

[[Page 93593]]

million, or 6.4 percent, from the 2024 forecast.
    The Reserve Banks will increase the monthly ACH Participation fee 
from $75 to $80 per RTN. The Reserve Banks will also increase the 
monthly ACH Origination Minimum fee from $50 to $55 and Receipt Minimum 
fee from $40 to $45 per RTN.\28\ The ACH Participation and Minimum Fee 
price changes are driven by ongoing operational costs and a continued 
focus on growing fixed fee revenue generation.
---------------------------------------------------------------------------

    \28\ The FedACH Minimum Fee applies to any RTN that has 
originated or received a FedACH transaction during a calendar month. 
The customer is charged their normal item fees plus a variable 
amount that closes the gap to the minimum. For example, an RTN 
originating 10K items in a month pays $35 in item fees (10K items 
times $0.0035 per item) and $15 in minimum fees so that their total 
origination fees are $50. Another RTN paying $51 in item fees would 
be charged an effective minimum fee of $0. Only one minimum 
threshold applies in any given period, with RTNs subject to the 
Receipt Minimum fee only if they did not originate any items.
---------------------------------------------------------------------------

    In addition, the Reserve Banks will increase the FedACH FedPayments 
Reporter Service fees from 6 to 11 percent as shown in Table 13.\29\ 
The FedPayments Reporter Service has continued to evolve and improve 
with enhanced features such as new intraday generation capabilities for 
select reports and the integration of an upgraded Electronic Data 
Interchange (EDI) parser. These efforts have increased both the costs 
of providing the FedPayments Reporter Service and the value it offers 
to customers.
---------------------------------------------------------------------------

    \29\ The FedPayments Reporter Service for the FedACH Services 
provides financial institutions and their customers with reports of 
their ACH transactions processed by FedACH including valuable 
business information.

           Table 13--FedACH FedPayments Reporter Service Fees
------------------------------------------------------------------------
                        Tiers                          2025 Monthly fee
------------------------------------------------------------------------
Tier 1--Up to 50 reports............................                 $50
Tier 2--From 51 to 150 reports......................                  72
Tier 3--From 151 to 500 reports.....................                 133
Tier 4--From 501 to 1,000 reports...................                 245
Tier 5--From 1,001 to 1,500 reports.................                 355
Tier 6--From 1,501 to 2,500 reports.................                 555
Tier 7--From 2,501 to 3,500 reports.................                 775
Tier 8--From 3,501 to 4,500 reports.................                 990
Tier 9--From 4,501 to 5,500 reports.................               1,200
Tier 10--From 5,501 to 7,000 reports................               1,460
Tier 11--From 7,001 to 8,500 reports................               1,700
Tier 12--From 8,501 to 10,000 reports...............               1,930
Tier 13--Over 10,000 reports........................               2,100
------------------------------------------------------------------------

    The Reserve Banks estimate these cumulative price changes will 
result in a 1.4 percent average increase for FedACH customers.
    The Reserve Banks' primary risk to current projections for the 
FedACH Service are lower-than-projected volumes and growth due to 
potential customer attrition.
    E. Fedwire Funds Service and National Settlement Service--Table 14 
shows the 2023 actual, 2024 forecasted, and 2025 budgeted cost-recovery 
performance for the Fedwire Funds Service and the National Settlement 
Service.

     Table 14--Fedwire Funds Service and National Settlement Service Pro Forma Cost and Revenue Performance
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Recovery rate
             Year                   Revenue      Total expense    Net income     Targeted ROE    after targeted
                                                                     (ROE)                             ROE
                                             1               2         3 [1-2]               4     5 [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2023 (actual).................           162.5           153.4             9.1             4.3             103.1
2024 (forecast)...............           169.2           153.1            16.1             3.0             108.3
2025 (budget).................           174.4           164.9             9.5             4.1             103.2
----------------------------------------------------------------------------------------------------------------

    1. 2024 Forecast--The Reserve Banks forecast that the Fedwire Funds 
Service and the National Settlement Service will recover 108.3 percent 
of total expenses and targeted ROE, compared with a 2024 budgeted 
recovery rate of 103.2 percent.
    Through August 2024, Fedwire Funds Service online volume has been 
5.9 percent higher than it was during the same period last year. The 
Reserve Banks expect volume to remain near this level through the 
remainder of 2024. Through August 2024, the National Settlement Service 
settlement file volume was 0.3 percent higher than it was during the 
same period last year, and settlement entry volume was 0.5 percent 
higher. For full-year 2024, the Reserve Banks estimate that settlement 
file volume will decrease 0.3 percent (compared with a budgeted 
decrease of 0.1 percent) and settlement entry volume will increase 0.4 
percent (compared with a budgeted 0.4 percent increase) from 2023 
levels.
    2. 2025 Pricing--The Reserve Banks expect the Fedwire Funds Service 
and the National Settlement Service to recover 103.2 percent of total 
expenses in 2025. The Reserve Banks project revenue to be $174.4 
million, an increase of $5.2 million, or 3.1 percent from the 2024 
forecast. The Reserve Banks project total expenses to be $164.9 
million, an increase of 11.8

[[Page 93594]]

million, or 7.7 percent, from the 2024 forecast. Rising costs are 
primarily driven by the Fedwire Funds Service's ongoing transition to 
the ISO[supreg] 20022 messaging format.\30\ In addition, the National 
Settlement Service continues to incur higher costs because of the 
expansion of its operating hours in 2022.\31\
---------------------------------------------------------------------------

    \30\ 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 
Service, 86 FR 55600 (Oct. 6, 2021).
    \31\ The 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.
---------------------------------------------------------------------------

    The Reserve Banks will increase the Fedwire Funds Service 
participation fee from $115 to $120. In addition, all three of the 
gross origination and receipt tiered fees will be increased. The tier 1 
fee will increase from $0.94 to $0.97, the tier 2 fee will increase 
from $0.29 to $0.30, and the tier 3 fee will increase from $0.19 to 
$0.195. Correspondingly, the volume-based incentive discount fee will 
increase for all three tiers. The tier 1 discount fee will increase 
from $0.188 to $0.194, the tier 2 discount fee will increase from 
$0.058 to $0.060, and the tier 3 discount fee will increase from $0.038 
to $0.039. Finally, the FedPayments Manager Import/Export fee will 
increase from $60 to $65. The Reserve Banks will also change National 
Settlement Service fees for 2025. The per-file fee will increase from 
$35 to $40, and the per-entry fee will increase from $1.70 to $1.95.
    In addition to these changes, the Reserve Banks will introduce a 
new volume-based fixed fee for the Fedwire Funds Service.\32\ The 
introduction of this fee will serve to reconcile challenges associated 
with volatility stemming from variable revenues sources while ensuring 
a fee structure that is better aligned with customer usage. This fee is 
based on the volume tier thresholds.\33\ The new volume-based fixed fee 
is one price point assessed at the parent level and is based on the 
highest volume tier of its associated affiliates.\34\ This differs from 
the existing participation fee in that the participation fee is 
assessed at the sub-account level for any ABA with at least one 
origination or receipt transaction during the month.\35\ The proposed 
price points for the volume-based fixed fees are as follows:
---------------------------------------------------------------------------

    \32\ Volume-based pricing for Fedwire Funds was introduced in 
1999. The analysis that led to volume-based pricing showed that 
Fedwire Funds can benefit from charging different prices to 
different areas of the market based on customer volume. When 
considering ways to increase fixed revenue, the Board re-examined 
this analysis and has concluded that establishing fixed revenue 
sources based on customer volume will benefit the Fedwire Funds 
service in a similar fashion to volume-based pricing for gross 
origination and receipt fees.
    \33\ Tiers are based on monthly total volume (send and receive) 
at the master account level: 0-14,000 messages (Tier 1); 14,001-
90,000 (Tier 2), and all volume above 90,000 messages (Tier 3).
    \34\ For example, if a parent customer has affiliates in the 
Tier 2 and Tier 3 volume thresholds, the parent will be assessed the 
corresponding $500 Tier 3 monthly fee.
    \35\ The new Monthly Fixed Fee will not be applicable to 
customers in the Tier 1 volume level.

      Table 15--Fedwire Funds Service Volume-Based Fixed Fee Tiers
------------------------------------------------------------------------
        Fixed fee level                Volume tier          Monthly fee
------------------------------------------------------------------------
Tier 2.........................  Tier 2.................            $250
Tier 3.........................  Tier 3.................             500
------------------------------------------------------------------------

    As noted above, this fee will serve to reconcile challenges 
associated with volatility stemming from variable revenues sources 
while ensuring a fee structure that is better aligned with customer 
usage. Fedwire Funds Service fee revenue has become increasingly 
dependent on variable sources and this growing exposure to uncertain 
fee fluctuations undermines annual revenue stability. This fee will 
address this uncertainty by increasing the percentage of fixed fee 
revenue. Further, the fee is intended to be commensurate with customer 
usage and structured so that smaller customers are not 
disproportionally impacted. In addition, this fee, alongside the other 
fee increases noted above, serves to help balance increases in ongoing 
operational costs incurred by the National Settlement Service for the 
period between 2014 and 2023, when fees did not increase.
    The Reserve Banks' primary risk to current projections for these 
services is lower than-projected-volumes and growth due to the market 
and economic environment given that historically, Fedwire Funds Service 
volume has reflected market conditions.\36\ The Reserve Banks estimate 
these cumulative price changes will result in a 5.7 percent average 
price increase for Fedwire Funds and National Settlement Service 
customers.
---------------------------------------------------------------------------

    \36\ Fedwire 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, https://www.frbservices.org/resources/financial-services/wires/volume-value-stats/annual-stats.html.
---------------------------------------------------------------------------

    F. Fedwire Securities Service--Table 16 shows the 2023 actual, 2024 
forecast, and 2025 budgeted cost-recovery performance for the Fedwire 
Securities Service.\37\
---------------------------------------------------------------------------

    \37\ The 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 16--Fedwire Securities Service Pro Forma Cost and Revenue Performance
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Recovery rate
             Year                   Revenue      Total expense    Net income     Targeted ROE    after targeted
                                                                     (ROE)                             ROE
                                             1               2         3 [1-2]               4     5 [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2023 (actual).................            49.1            39.7             9.4             0.5             122.3
2024 (forecast)...............            52.5            41.8            10.7             0.8             123.2
2025 (budget).................            55.7            47.3             8.4             0.9             115.7
----------------------------------------------------------------------------------------------------------------

[[Page 93595]]

    1. 2024 Forecast--The Reserve Banks forecast that the Fedwire 
Securities Service will recover 123.2 percent of total expenses and 
targeted ROE, compared with a 2024 budgeted recovery rate of 110.9 
percent.
    Through August 2024, Treasury security transfer volume was 15.9 
percent higher than it was during the same period last year. For full-
year 2024, the Reserve Banks estimate that Treasury security transfer 
volume will increase 4.0 percent from 2023 levels, compared with a 
budgeted decrease of 7.3 percent. Through August 2024, Agency security 
transfer volume was 3.8 percent lower than it was during the same 
period last year. For full-year 2024, the Reserve Banks estimate that 
Agency security transfer volume will decrease 2.6 percent from 2023 
levels, compared with a budgeted increase of 1.3 percent.
    Through August 2024, account maintenance volume was 0.7 percent 
lower than it was during the same period last year. For full-year 2024, 
the Reserve Banks estimate that account maintenance volume will decline 
1.0 percent from 2023 levels, compared with a budgeted decline of 2.6 
percent. Through August 2024, the volume of Agency issues maintained 
was 0.5 percent lower than it was during the same period last year. For 
full-year 2024, the Reserve Banks estimate that the volume of Agency 
issues maintained will decrease 0.4 percent from 2023 levels, compared 
with a budgeted change of 0.0 percent.
    2. 2025 Pricing--The Reserve Banks expect the Fedwire Securities 
Service to recover 115.7 percent of total expenses and targeted ROE in 
2025. Revenue is projected to be $55.7 million, an increase of $3.2 
million, or 6.0 percent, from the 2024 revenue forecast. The Reserve 
Banks also project that 2025 expenses will be $47.3 million, an 
increase of $5.5 million, or 13.1 percent from the 2024 forecast.
    The Reserve Banks will leave fee schedules for Fedwire Securities 
priced services unchanged in 2025. This decision considers the benefits 
of maintaining consistent customer pricing in the face of rising costs 
and higher than expected volatility in transfer volumes.
    Regarding volumes, the Reserve Banks project that monthly 
maintenance products will maintain relatively stable volumes throughout 
2025 with Issue Maintenance volume to increase slightly at 0.2 percent 
and Account Maintenance volume to decrease 0.6 percent in 2025. 
Treasury transfer volume is slated to continue its record growth trend 
with an anticipated 9.4 percent increase. Agency transfers are 
projected to increase by 0.5 percent in 2025.
    The Reserve Banks project that Agency transfer volume will increase 
moderately compared with previous years, as interest rates fall, 
encouraging home-buying and mortgage refinancing. As detailed in the 
figures above, the volume of Treasury security transfers is projected 
to continue its record growth trend due primarily to debt issuance by 
the Treasury. 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 and 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 macroeconomic 
outlook and market conditions.
    G. FedNow Service--
    1. 2024 Forecast--The Reserve Banks forecast that the FedNow 
Service will generate a total of $244.9 million in expenses in 2024.
    The number of transactions processed by the FedNow Service in 2024 
is modest and consistent with the Federal Reserve's expectations for a 
new service line. From January through August 2024, the transaction 
volume of the FedNow Service totaled 414,827 transactions, with the 
number of participants growing from 400 to just under 1,000 financial 
institutions during this time period. Broad adoption of the FedNow 
Service across an industry with more than 9,000 financial institutions 
will be a gradual journey, similar to other new payment services like 
FedACH in the 1970s and 1980s. As a result, the Board has adopted a 
long-term outlook in evaluating the development of the FedNow Service. 
The Board anticipates acceleration in volume over time as more 
financial institutions join the network and as the Reserve Banks 
release new service features on an ongoing basis.\38\
---------------------------------------------------------------------------

    \38\ For quarterly FedNow Service transaction data, see Board of 
Governors of the Federal Reserve System, FedNow Service, https://www.federalreserve.gov/paymentsystems/fednow_about.htm.
---------------------------------------------------------------------------

    2. 2025 Pricing--In 2025, the Reserve Banks project total operating 
expenses to be $245.5 million, which will be an increase of $0.6 
million or 0.2 percent from the 2024 forecast.\39\
---------------------------------------------------------------------------

    \39\ During the time in 2023 when the FedNow Service was in 
production, expenses (including imputed costs) totaled $99.7 
million.
---------------------------------------------------------------------------

    The Reserve Banks will modify the Customer Credit Transfer, 
Customer Credit Transfer Return, and Request for Payment fee components 
of the FedNow Service to exclude ``on-us'' transactions sent from and 
received at the same financial institution.\40\ This adjustment will 
both align with prevailing market practices and reduce inefficient off-
network transaction activity. All other components of the previous 
year's fee schedule, inclusive of discounts, will be maintained by the 
Reserve Banks in 2025.\41\
---------------------------------------------------------------------------

    \40\ The modifications will take place at the parent financial 
institution level, as defined in the Reserve Banks' Global Customer 
Directory. ``On-us'' transactions include those made by the same 
financial institution, even if the financial institution uses 
multiple RTNs.
    \41\ These maintained fees and discounts include the FedLine 
connectivity discount. The FedLine connectivity discount program 
consists of providing credits for upgrade fees from a FedMail or 
FedLine Web connection to FedLine Advantage and new FedLine 
Advantage connection fees for the FedNow Service to qualifying 
institutions. Credits will be for 12 months from FedLine Advantage 
billing eligibility. Customers that have received discounts 
throughout the 2024 program will see FedLine connectivity discounts 
roll off in 2025 following the completion of the 12-month term.
---------------------------------------------------------------------------

    H. FedLine Solutions--There are currently six FedLine Solutions 
channels through which customers can access the Reserve Banks' priced 
services: FedMail[supreg], FedLine Exchange, FedLine Web, FedLine 
Advantage[supreg], FedLine Command and FedLine Direct.\42\ The Reserve 
Banks bundle these channels into 12 FedLine Solutions packages that are 
supplemented by a number of premium (or [agrave] la carte) access and 
accounting information options.
---------------------------------------------------------------------------

    \42\ The Reserve Banks charge fees for the electronic 
connections that financial institutions use to access priced 
services and allocate the costs and revenues associated with this 
electronic access to the priced services. As a result, FedLine costs 
and revenue are allocated to the Reserve Banks' priced services on 
an expense ratio basis.
---------------------------------------------------------------------------

    The Reserve Banks also offer FedComplete[supreg] Packages, which 
are bundled offerings of FedLine connections and a fixed number of 
FedACH Services, Fedwire Funds Services, and Check 21-enabled 
transactions. In 2025, the Reserve Banks will increase the monthly fees 
for FedComplete 100A Plus from $900 to $1,150 and FedComplete 200A Plus 
from $1,425 to $1,725. The price increases reflect the rising fees and 
enhancements of the package's underlying services. To simplify the 
FedComplete Packages and create internal efficiencies, FedComplete 100A

[[Page 93596]]

Premier and 200A Premier will be discontinued. Additionally, the 
Reserve Banks plan to discontinue the FedLine Exchange service to 
streamline FedLine Solution products and create internal efficiencies 
that simplify operating, servicing, and billing processes.\43\
---------------------------------------------------------------------------

    \43\ The FedLine Exchange service provides access to the E-
Payments Routing Directory, which is also available to plus level 
customers across the FedLine channels. 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.
---------------------------------------------------------------------------

    The Reserve Banks will increase the monthly fees for FedLine 
Command Plus from $1,035 to $1,185, FedLine Direct Plus from $5,500 to 
$5,750, and FedLine Direct Premier from $10,500 to $11,000 per month. 
Price changes for the FedLine Command and FedLine Direct packages are 
in response to enhancements for the FedNow Service and account for the 
price increases from the End-of-Day Financial Institution Reconcilement 
Date (FIRD) File and Statement of Account Spreadsheet File (SASF) 
offerings.\44\ FedLine Direct had additional operational costs 
associated with a new network vendor and hardware upgrades that have 
contributed to these price increases.
---------------------------------------------------------------------------

    \44\ 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. The FedLine Command package 
offers a computer-to-computer, internet protocol-based interfaces 
that supports an unattended connection to FedACH, most accounting 
information services, and the FedNow Service.
---------------------------------------------------------------------------

    In 2025, the Reserve Banks are prepared to add API functionality 
for certain services and products.\45\ The Reserve Banks are developing 
an initial pricing menu for priced APIs. Upon launch, each API would be 
assigned a core pricing scenario. Communication will be forthcoming on 
the timing, availability, and pricing scenarios for initial APIs.
---------------------------------------------------------------------------

    \45\ APIs are a set of protocols for connecting software systems 
programmatically, enabling system-to-system interoperability.
---------------------------------------------------------------------------

    The Reserve Banks estimate these cumulative price changes will 
result in a 4.8 percent average price increase for FedLine 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 Board's policy, The 
Federal Reserve in the Payments System. \46\ Under this policy, the 
Board assesses whether changes would have a direct and material adverse 
effect on the ability of other service providers to compete effectively 
with the Federal Reserve in providing similar services due to differing 
legal powers or constraints or due to 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.
---------------------------------------------------------------------------

    \46\ See Board of Governors of the Federal Reserve System, 
Policies: The Federal Reserve in the Payments System, https://www.federalreserve.gov/paymentsystems/pfs_frpaysys.htm.
---------------------------------------------------------------------------

    The Board has conducted this analysis and concluded that the 2025 
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 Board 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. 2025 Fee Schedules

                    FedACH Services 2025 Fee Schedule
  [Effective January 1, 2025. Bold indicates changes from 2024 prices]
------------------------------------------------------------------------
                                                      Fee
------------------------------------------------------------------------
FedACH minimum monthly fee:
    Originating depository financial  $55.00.
     institution (ODFI) \47\.
    Receiving depository financial    $45.00.
     institution (RDFI) \48\.
Origination (per item or record):
    Forward or return items.........  $0.0035.
    SameDay Service--forward item     $0.0010 surcharge.
     \49\.
    Addenda record..................  $0.0015.
    FedLine Web-originated returns    $0.50.
     and notification of change
     (NOC) \50\.
    Facsimile Exception Return/NOC    $45.00.
     \51\.
    SameDay Exception Return........  $45.00.
    Automated NOC...................  $0.20.
    Volume discounts (based on        ..................................
     monthly billed origination
     volume) \52\ per item when
     origination volume is
        750,001 to 1,500,000 items    $0.0008.
         per month discount.
        more than 1,500,000 items     $0.0010.
         per month discount.
    Volume discounts (based on        ..................................
     monthly billed receipt volume)
     \53\ per item when receipt
     volume is
        10,000,001 to 15,000,000      $0.0002.
         items per month discount.
        more than 15,000,000 items    $0.0003.
         per month discount.
Receipt (per item or record):         ..................................
    Forward Item....................  $0.0035.
    Return Item.....................  $0.0075.
    Addenda record..................  $0.0015.
    Volume discounts:                 ..................................
        Non-Premium Receivers \54\    ..................................
         per item when volume is.
            750,001 to 12,500,000     $0.0017 discount.
             items per month \55\.

[[Page 93597]]

 
            more than 12,500,000      $0.0019 discount.
             items per month \56\.
        Premium Receivers, Level One  ..................................
         \57\ per item when volume
         is.
            750,001 to 1,500,000      $0.0017 discount.
             items per month \58\.
            1,500,001 to 2,500,000    $0.0017 discount.
             items per month \59\.
            2,500,001 to 12,500,000   $0.0018 discount.
             items per month \53\.
            12,500,001 to 30,000,000  $0.0020 discount.
             items per month \53\.
            more than 30,000,000      $0.0023 discount.
             items per month \53\.
        Premium Receivers, Level Two  ..................................
         \60\ per item when volume
         is.
            750,001 to 1,500,000      $0.0017 discount.
             items per month \61\.
            1,500,001 to 2,500,000    $0.0017 discount.
             items per month \62\.
            2,500,001 to 12,500,000   $0.0019 discount.
             items per month \56\.
            12,500,001 to 30,000,000  $0.0021 discount.
             items per month \56\.
            more than 30,000,000      $0.0024 discount.
             items per month \56\.
FedACH Risk Management Services:      ..................................
 \63\
    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     $85.00.
         sets.
        For 12 through 23 criteria    $150.00.
         sets.
        For 24 through 47 criteria    $180.00.
         sets.
        For 48 through 95 criteria    $300.00.
         sets.
        For 96 through 191 criteria   $510.00.
         sets.
        For 192 through 383 criteria  $810.00.
         sets.
        For 384 through 584 criteria  $1,025.00.
         sets.
        For more than 584 criteria    $1,325.00.
         sets.
    Batch/Item Monitoring (based on   ..................................
     total monthly volume):
        For 1 through 100,000         $0.007.
         batches (per batch).
        For more than 100,000         $0.0035.
         batches (per batch).
FedPayments Insights Service: \64\    ..................................
    Monthly Fee (a single fee based   ..................................
     on commercial receipt volume):
        0-50,000 items per month....  $75.00.
        50,001-100,000 items per      $120.00.
         month.
        100,001-500,000 items per     $180.00.
         month.
        500,001-1,000,000 items per   $260.00.
         month.
        1,000,001-5,000,000 items     $340.00.
         per month.
        5,000,001-10,000,000 items    $450.00.
         per month.
        10,000,001-25,000,000 items   $550.00.
         per month.
        25,000,001-60,000,000 items   $625.00.
         per month.
        Over 60,000,000 items per     $700.00.
         month.
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    $1.00.
         \65\.
Monthly Package Fee (counts reflect
 reports generated as well as
 delivered via a FedLine Solution):
    For up to 50 reports............  $50.00.
    For 51 through 150 reports......  $72.00.
    For 151 through 500 reports.....  $133.00.
    For 501 through 1,000 reports...  $245.00.
    For 1,001 through 1,500 reports.  $355.00.
    For 1,501 through 2,500 reports.  $555.00.
    For 2,501 through 3,500 reports.  $775.00.
    For 3,501 through 4,500 reports.  $990.00.
    For 4,501 through 5,500 reports.  $1,200.00.
    For 5,501 through 7,000 reports.  $1,460.00.
    For 7,001 through 8,500 reports.  $1,700.00.
    For 8,501 through 10,000 reports  $1,930.00.
    For more than 10,000 reports....  $2,100.00.
    Premier reports (per report       ..................................
     generated): \66\
        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.

[[Page 93598]]

 
            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    $10.00.
         per RTN).
        Per-item....................  $0.0030.
        Per-addenda.................  $0.0015.
    Report delivery via encrypted     $0.20.
     email (per email).
Other Fees and Discounts:
    Monthly fee (per RTN):
        FedACH Participation Fee      $80.00.
         \67\.
        Same Day Service Origination  $10.00.
         Participation Fee \68\.
    FedACH Settlement Fee \69\
        Premium Receivers, Level One  $60.00.
         and Level Two.
        Non-Premium Receivers when    $110.
         volume is 1,500,000 items
         or less per month, Tier 2.
        Non-Premium Receivers when    $250.00.
         volume is more than
         1,500,000 items per month,
         Tier 3.
    FedACH Information File Extract   $180.00.
     Fee.
    IAT Output File Sort Fee........  $150.00.
    Fixed Participation Fee--         $5.00.
     Automated NOCs \70\.
    Non-Electronic Input/Output fee:
     \71\
        CD/DVD (CD or DVD)..........  $50.00.
        Paper (file or report)......  $50.00.
    Fees and Credits Established by
     Nacha: \72\
        Nacha Same-Day Entry fee      $0.052.
         (per item).
        Nacha Same-Day Entry credit   $0.052 (credit).
         (per item).
        Nacha Unauthorized Entry fee  $4.50.
         (per item).
        Nacha Unauthorized Entry      $4.50 (credit).
         credit (per item).
        Nacha Admin Network fee       $30.50.
         (monthly fee per RTN).
        Nacha Admin Network fee (per  $0.000185.
         entry).
FedGlobal[supreg] ACH Payments: \73\
    Fixed Monthly Fee (per RTN):
     \74\
        Monthly origination volume    $185.00.
         more than 500 items.
        Monthly origination volume    $60.00.
         between 161 and 500 items.
        Monthly origination volume    $20.00.
         less than 161 items.
    Per-item Origination Fee for
     Monthly Volume more than 500
     Items (surcharge): \75\
        Mexico service..............  $0.55.
        Panama service..............  $0.60.
    Per-item Origination Fee for
     Monthly Volume between 161 and
     500 items (surcharge): \79\
        Mexico service..............  $0.80.
        Panama service..............  $0.85.
    Per-item Origination Fee for
     Monthly Volume less than 161
     items (surcharge): \79\
        Mexico service..............  $1.05.
        Panama service..............  $1.10.
    Other FedGlobal ACH Payments
     Fees:
        Mexico service:
            Return received from      $0.91 (surcharge).
             Mexico \76\.
            Item trace \77\.........  $13.50.
            Foreign currency to       $0.67 (surcharge).
             foreign currency (F3X)
             item originated to
             Mexico \79\.
        Panama service:
            Return received from      $1.00 (surcharge).
             Panama \71\.
            Item trace \72\.........  $7.00.
            NOC.....................  $0.72.
Exception Resolution Service:
    Monthly Fees (applies to cases
     only at the parent RTN): \78\
        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: \79\
        Case Open Fee...............  $5.00.
        Case Response Fee...........  $5.00.
FedACH Receipt Discount Program
 Introduced in 2024: \80\
    Customers with more than 30
     million FedACH receipt items
     per month:
        Per-item discount on all      $0.0002.
         forward receipt items
         received through FedACH for
         the full five-year length
         of the agreement.
        Percentage discount on the    50 percent.
         FedACH FedPayments Reporter
         Service for two years at
         any point during
         participation in the
         program.
        Percentage discount on the    100 percent.
         FedACH Exception Resolution
         Service for two years at
         any point during their
         participation in the
         program.
        Percentage discount on the    100 percent.
         FedACH FedPayments[supreg]
         Insights Service for two
         years at any point during
         their participation in the
         program.

[[Page 93599]]

 
    Customers with between 5 and 30
     million FedACH receipt items
     per month:
    Per-item discount on all forward  $0.0001.
     receipt items received through
     FedACH for the full 5-year
     length of the agreement.
    Percentage discount on the        25 percent.
     FedACH FedPayments Reporter
     Service for two years at any
     point during their
     participation in the program.
    Percentage discount on the        50 percent.
     FedACH Exception Resolution
     Service for two years at any
     point during their
     participation in the program.
    Percentage discount on the        50 percent.
     FedACH FedPayments Insights
     Service for two years at any
     point during their
     participation in the program.
------------------------------------------------------------------------

Fedwire Funds Service and National Settlement Service 2025 Fee Schedules
  [Effective January 1, 2025. Bold indicates changes from 2024 prices.]
------------------------------------------------------------------------
                                                                Fee
------------------------------------------------------------------------
                          Fedwire Funds Service
------------------------------------------------------------------------
Monthly Participation Fee...............................         $120.00
Basic volume-based pre-incentive transfer fee
 (originations and receipts)--per transfer for
    Tier 1: The first 14,000 transfers per month........           0.970
    Tier 2: Additional transfers up to 90,000 per month.           0.300
    Tier 3: Every transfer over 90,000 per month........           0.195
Monthly Fixed Fee:
    Tier 2 Monthly Fixed Fee \81\.......................          250.00
    Tier 3 Monthly Fixed Fee \82\.......................          500.00
Volume-based transfer fee with the incentive discount
 (originations and receipts)--per eligible transfer for
 \83\
    Tier 1: The first 14,000 transfers per month........           0.194
    Tier 2: Additional transfers 14,001 to 90,000 per              0.060
     month..............................................
    Tier 3: Every transfer over 90,000 per month........           0.039
Surcharge for Offline Transfers (Originations and                  75.00
 Receipt) \84\..........................................
Surcharge for End-of-Day Transfer Originations \85\.....            0.26
Monthly FedPayments Manager Import/Export fee \86\......           65.00
Surcharge on transfers >$10 million Origination and                 0.14
 Receipt................................................
Surcharge on transfers >$100 million Origination and                0.36
 Receipt................................................
Surcharge for Payment Notification:
    Origination Surcharge \87\..........................            0.01
    Receipt Volume \88\.................................             N/A
Delivery of Reports--Hard Copy Reports to On-Line                  50.00
 Customers..............................................
Special Settlement Arrangements (charge per settlement            150.00
 day) \89\..............................................
------------------------------------------------------------------------
                       National Settlement Service
------------------------------------------------------------------------
Basic:
    Settlement Entry Fee................................            1.95
    Settlement File Fee.................................           40.00
Surcharge for Offline File Origination \90\.............           45.00
Minimum Monthly Fee \91\................................           60.00
------------------------------------------------------------------------

              Fedwire Securities Service 2025 Fee Schedule
  [Effective January 1, 2025. Bold indicates changes from 2024 prices.]
------------------------------------------------------------------------
                                                                Fee
------------------------------------------------------------------------
Basic Transfer Fee: 92 93                                 ..............
    Agency Securities: Transfer or reversal originated              0.61
     or received........................................
    Treasury Securities: Transfer or reversal originated            0.61
     or received........................................
Surcharge: \94\                                           ..............
    Agency Securities: Offline origination & receipt               80.00
     surcharge..........................................
    Treasury Securities: Offline origination & receipt             80.00
     surcharge..........................................
Monthly Maintenance Fees: \95\                            ..............
    Agency Securities: Account maintenance (per account)           57.50
     \96\...............................................
    Agency Securities: Issue maintenance (per issue/per             0.61
     account) \97\......................................
    Treasury Securities: Account maintenance (per                   None
     account) \98\......................................
    Treasury Securities: Issue maintenance (per issue/              None
     per account) \99\..................................
ACAP Fees: 100 101                                        ..............
    Claims Adjustment Fee...............................           $1.00
    Tracking Indicators Fee.............................            0.10
    Position Maintenance Fee (per position maintained/              0.03
     per business day) 102 103..........................
GNMA Serial Note Stripping or Reconstitution Fee \104\..            9.00
Joint Custody Origination Surcharge 105 106.............           46.00
Delivery of Reports--Hard Copy Reports to On-Line                  50.00
 Customers \107\........................................
------------------------------------------------------------------------

[[Page 93600]]

                    FedNow Service 2025 Fee Schedule
  [Effective January 1, 2025. Bold indicates changes from 2024 prices.]
------------------------------------------------------------------------
                                                         Fee
------------------------------------------------------------------------
Customer Credit Transfer (per item)          $0.045.
 PACS.008 Origination.
PACS.008 Origination--On-Us................  $0.000.
Customer Credit Transfer Returns (per item)  $0.045.
 PACS.004 Origination.
PACS.004 Origination--On-Us................  $0.000.
Liquidity Management Transfer (LMT) (per-    $1.00.
 item) PACS.009 Origination.
Request for Payment (RFP) (per-item)         $0.01.
 PAIN.013.
PAIN.013--On-Us............................  $0.000.
PACS.008 Origination Discount..............  -$0.045 per item for up to
                                              2,500 customer credit
                                              transfers per month (in
                                              2025).
Participation Fee--General (per month).....  $25.00, discounted to $0.00
                                              in 2025.
------------------------------------------------------------------------

                        FedLine 2025 Fee Schedule
  [Effective January 1, 2025. Bold indicates changes from 2024 prices.]
------------------------------------------------------------------------
                                                      Fee
------------------------------------------------------------------------
                 FedComplete Packages (monthly) 108 109
------------------------------------------------------------------------
FedComplete 100A Plus \110\.........  $1,150.00.
FedComplete 200A Plus...............  $1,725.00.
FedComplete Excess Volume and         ..................................
 Receipt Surcharge: \111\
    FedForward[supreg] \112\........  $0.03700/item.
    FedReturn[supreg]...............  $0.82000/item.
    FedReceipt......................  $0.00005/item.
    Fedwire Funds Origination.......  $0.97000/item.
    Fedwire Funds Receipt...........  $0.09700/item.
    FedACH Origination..............  $0.00350/item.
    FedACH Receipt..................  $0.00035/item.
FedComplete credit adjustment.......  various.
FedComplete debit adjustment........  various.
------------------------------------------------------------------------
                       FedLine Solutions (monthly)
------------------------------------------------------------------------
FedMail \113\.......................  $100.00.
FedLine Web \114\...................  $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 106 115...........  $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................  $1,185.00.
FedLine Direct Plus \116\...........  $5,750.00.
FedLine Direct Premier \108\........  $11,000.00.
Includes:                             ..................................
    Services included in the FedLine  ..................................
     Direct Plus package.
    Two 2 Mbps dedicated WAN          ..................................
     Connections.
    One Network Diversity...........  ..................................
    Two VPN devices.................  ..................................
------------------------------------------------------------------------
                   A la carte options (monthly) \117\
------------------------------------------------------------------------
Electronic Access:                    ..................................
    FedMail--Pack of 5..............  $25.00.
    FedLine Subscribers--Pack of 5..  $100.00.
    Additional VPNs \118\...........  $100.00.
    Additional 2 Mbps WAN connection  $3,000.00.
     \108\.
    WAN Connection Upgrade:           ..................................
        10 Mbps \119\...............  $1,700.00.
        30 Mbps \111\...............  $3,000.00.
        50 Mbps \120\...............  $4,000.00.
        100 Mbps \120\..............  $7,000.00.
        200 Mbps \120\..............  $11,000.00.
    FedLine International Setup (one- $5,000.00.
     time fee).
    FedLine Custom Implementation     $2,500-$5,000.
     Fee (one-time fee) \120\.
    Network Diversity...............  $2,500.00.
    FedMail Email (for customers      $100.00.
     with FedLine Web and above)
     \121\.
    VPN Device Modification (one-     $200.00.
     time fee).
    VPN Device Missed Activation      $175.00.
     Appointment (one-time fee).
    VPN Device Expedited Hardware     $100.00.
     Surcharge (one-time fee).

[[Page 93601]]

 
    VPN Device Replacement or Move    $300.00.
     (one-time fee).
    E-Payments Automated Download     $75.00/month.
     Codes (Add'l Codes-Pack of 5)
     \122\.
    E-Payments Automated Download     $150.00/month.
     Codes (Add'l Codes-Pack of 20)
     \114\.
    E-Payments Automated Download     $300.00/month.
     Codes (Add'l Codes-Pack of 50)
     \123\.
    E-Payments Automated Download     $500.00/month.
     Codes (Add'l Codes-Pack of 100)
     \123\.
    E-Payments Automated Download     $1,000.00/month.
     Codes (Add'l Codes-Pack of 250)
     \123\.
    E-Payments Automated Download     $2,000.00/month.
     Codes (Add'l Codes- >250) \123\.
Daily Statement of Account Activity   ..................................
 and Monthly Statement of Service
 Charges (monthly): 123 124
    End-of-Day Financial Institution  $200.00.
     Reconcilement Data (FIRD) File.
    Statement of Account Spreadsheet  $200.00.
     File (SASF).
Cash Management Service (CMS) Plus    ..................................
 and Intra-day Service (monthly):
    Cash Management System (CMS)      ..................................
     Plus--Own report--up to 12
     files with: \125\
        no OSRTN, respondent/sub-     $75.00.
         account activity.
        Up to nine OSRTNs,            $150.00.
         respondents and/or sub-
         accounts.
        10-50 OSRTNs, respondents     $300.00.
         and/or sub-accounts.
        51-100 OSRTNs, respondents    $600.00.
         and/or sub-accounts.
        101-500 OSRTNs, respondents   $900.00.
         and/or sub-accounts.
        >500 OSRTNs, respondents and/ $1,200.00.
         or sub-accounts.
    Intra-day Download Search         $200.00.
     Results in Spreadsheet Format
     (with AMI) \126\.
Other:                                ..................................
    Replacement Copies: \127\         ..................................
        Daily Statement of Account..  $10.00/copy
        Monthly Statement of Service  $10.00/copy
         Charges.
    Vendor Pass-Through Fee.........  various.
    Electronic Access Credit          various.
     Adjustment.
    Electronic Access Debit           various.
     Adjustment.
------------------------------------------------------------------------

     
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    \47\ Any ODFI incurring less than $55 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.
    \48\ Any RDFI not originating forward value and non-value items 
and incurring less than $45 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 $55 in forward 
value and nonvalue item origination fees will only be charged a 
variable amount to reach the minimum monthly origination fee.
    \49\ This surcharge is assessed on all forward items that 
qualify for same-day processing and settlement and is incremental to 
the standard origination item fee.
    \50\ The fee includes the item and addenda fees in addition to 
the conversion fee.
    \51\ The 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.
    \52\ Origination volumes at these levels qualify for a waterfall 
discount that includes all FedACH origination items.
    \53\ Origination discounts based on monthly billed receipt 
volume apply only to those items received by FedACH receiving points 
and are available only to Premium Receivers.
    \54\ RDFIs receiving through FedACH less than 90 percent of 
their FedACH-originated items.
    \55\ This per-item discount is a reduction to the standard 
receipt fees listed in this fee schedule.
    \56\ Receipt volumes at these levels qualify for a waterfall 
discount that includes all FedACH receipt items.
    \57\ RDFIs 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.
    \58\ This per-item discount is a reduction to the standard 
receipt fees listed in this fee schedule.
    \59\ Receipt volumes at these levels qualify for a waterfall 
discount which includes all FedACH receipt items.
    \60\ RDFIs receiving through FedACH at least 90 percent of all 
of their ACH items originated through any operator.
    \61\ This per-item discount is a reduction to the standard 
receipt fees listed in this fee schedule.
    \62\ Receipt volumes at these levels qualify for a waterfall 
discount which includes all FedACH receipt items.
    \63\ Criteria 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.
    \64\ Monthly commercial receipt volume is calculated based on 
combined volume of subscribed RTNs in an account family.
    \65\ Premier reports generated on demand are subject to the 
package/tiered fees plus a surcharge.
    \66\ Premier reports generated on demand are subject to the 
package/tiered fees plus a surcharge.
    \67\ The 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.
    \68\ This 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.
    \69\ The 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.
    \70\ Fee will be assessed only when automated NOCs are 
generated.
    \71\ Limited services are offered in contingency situations.
    \72\ The 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.
    \73\ The international fees and surcharges vary from country to 
country as these are negotiated with each international gateway 
operator.
    \74\ A single monthly fee based on total FedGlobal ACH Payments 
origination volume.
    \75\ This per-item surcharge is in addition to the standard 
domestic origination fees listed in this fee schedule.
    \76\ This per-item surcharge is in addition to the standard 
domestic receipt fees listed in this fee schedule.
    \77\ U.S. ODFIs are responsible for any investigation fees 
should they be assessed by foreign RDFIs or downstream payment 
participants.
    \78\ The 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.
    \79\ A 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.
    \80\ Federal Reserve Financial Services offers a five-year 
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. View code 
details and text on the FedACH Receipt Discount Program page.
    \81\ This fee applies at the parent level to any bank which has 
at least 1 unit of volume in the Tier 2 Pre-Incentive Discount range 
and no volume in the Tier 3 Pre-Incentive Discount range.
    \82\ This fee applies at the parent level to any bank which has 
at least 1 unit of volume in the Tier 3 Pre-Inventive Discount 
range.
    \83\ The 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.
    \84\ The offline service, which was originally scheduled to be 
discontinued as of December 31, 2024, will be extended to no later 
than February 2025 to accommodate financial institutions' readiness.
    \85\ This surcharge applies to originators of transfers that are 
processed by the Reserve Banks after 5:00 p.m. ET.
    \86\ This 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.
    \87\ Payment Notification and End-of-Day Origination surcharges 
apply to each Fedwire funds transfer message.
    \88\ Provided on billing statement for informational purposes 
only.
    \89\ This 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.
    \90\ An 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 [email protected].
    \91\ Any settlement arrangement that accrues less than $60 
during a calendar month will be assessed a variable amount to reach 
the minimum monthly fee.
    \92\ Restricted 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.
    \93\ These fees are set by the Federal Reserve Banks.
    \94\ This surcharge is set by the Federal Reserve Banks. It is 
in addition to any basic transfer or reversal fee.
    \95\ Restricted 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.
    \96\ These fees are set by the Federal Reserve Banks.
    \97\ These fees are set by the Federal Reserve Banks.
    \98\ The 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.
    \99\ The 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.
    \100\ These fees are set by the Federal Reserve Banks.
    \101\ Automated 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.
    \102\ Participants 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.
    \103\ Participants 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/.
    \104\ This fee is set by and remitted to the Government National 
Mortgage Association (GNMA).
    \105\ The Federal Reserve Banks charge participants a Joint 
Custody Origination Surcharge for both Agency and Treasury 
securities.
    \106\ These fees are set by the Federal Reserve Banks.
    \107\ These fees are set by the Federal Reserve Banks.

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[[Page 93602]]

     
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    \108\ FedComplete Packages are all-electronic service options 
that bundle payment services with an access solution for one monthly 
fee.
    \109\ FedComplete customers that use the email service would be 
charged the FedMail Email a la carte fee and for all FedMail 
Subscriber 5-packs.
    \110\ Packages with an ``A'' include the FedLine Advantage 
channel.
    \111\ Per-item surcharges are in addition to the standard fees 
listed in the applicable priced services fee schedules.
    \112\ FedComplete 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.
    \113\ FedMail package does 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 Subscriber 5-pack.
    \114\ FedLine 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.
    \115\ Qualifying institutions who upgrade from FedMail or 
FedLine Web to FedLine Advantage or establish a new FedLine 
Advantage connection for the FedNow Service will receive 12 months 
of credits from FedLine Advantage billing eligibility.
    \116\ Early termination fees and/or expedited order fees may 
apply to all FedLine Direct packages and FedLine Direct [agrave] la 
carte options.
    \117\ These add-on services can be purchased only with a FedLine 
Solution.
    \118\ Additional VPNs are available for FedLine Advantage, 
FedLine Command, and FedLine Direct packages only.
    \119\ Fee is in addition to the FedLine Direct package fees or 
Additional 2Mbps WAN Connection fee.
    \120\ The FedLine Custom Implementation Fee is $2,500 or $5,000 
based on the complexity of the setup.
    \121\ Available only to customers with a priced FedLine package 
and does 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 Subscriber 5-pack.
    \122\ Five download codes are included at no cost in all Plus 
and Premier packages.
    \123\ Available 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.
    \124\ The End of Day Financial Institution Reconcilement Data 
(FIRD) and Statement of Account Spreadsheet File (SASF) are 
available for Master accounts only.
    \125\ Available with FedLine Plus and Premier packages.
    \126\ Available for FedLine Web Plus and Premier packages. 
Available for no extra fee in FedLine Advantage and higher packages.
    \127\ Charging 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. 2024-27831 Filed 11-26-24; 8:45 am]
BILLING CODE 6210-01-P
```