[Federal Register Volume 73, Number 161 (Tuesday, August 19, 2008)]
[Rules and Regulations]
[Pages 48299-48300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18886]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


Automated Clearing House (ACH) Debit Added as New Method of 
Payment for Express Mail Corporate Account Customers

AGENCY: Postal Service\TM\.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule revises Mailing Standards of the United States 
Postal Service, Domestic Mail Manual (DMM[supreg]), by making Automated 
Clearing House (ACH) debit a new method of payment for Express 
Mail[supreg] Corporate Account (EMCA) customers and eliminating the 
option to open new local trust accounts. The ACH system is a secure, 
private network that connects banks to one another by way of the 
Federal Reserve Board. This network enables electronic payments, such 
as ACH debits, to be handled and processed. EMCA customers will 
continue to have a total of three options to fund their accounts: 
Participate in the Centralized Account Processing System (CAPS); use a 
personal or business credit card; or authorize the USPS[supreg] to 
originate an ACH debit from a specified bank account. Existing EMCA 
customers that fund their account from a local trust account will still 
be required to maintain minimum balances.
    This final rule also revises the DMM by adding provisions to close 
an EMCA funded by ACH debit payments.

EFFECTIVE DATE: October 1, 2008.

FOR FURTHER INFORMATION CONTACT: Grace Letto, 202-268-7247 or Garry 
Rodriguez, 202-268-7281, United States Postal Service.

SUPPLEMENTARY INFORMATION:

Comments

    There was one internal comment received on the October 10, 2007, 
proposed rule. The commenter recommended the existing language on 
closing accounts be revised as a result of the addition of ACH debit 
payment method.
    Based on the internal comment, we are updating DMM section 414.2.6, 
Closing Account, to maintain its applicability to the remaining trust 
accounts while they are being phased out and to add comparable 
provisions that apply to ACH debit and credit card payments.

Current Policy

    EMCA customers could use one of the following payment methods to 
fund their accounts:
    a. Participate in the Centralized Account Processing System (CAPS).
    b. Use a personal or business credit card.
    c. Make an initial deposit with cash or by check of $250, or the 
total postage and fees expected during the first 4 weeks of account 
usage, whichever is higher. After the first 4 weeks, the minimum 
balance in the account must equal an average week's postage and fees, 
or $100, whichever is higher.
    The DMM currently provides the USPS the right to close an EMCA with 
10 days' written advance notice to the account holder if the ending 
balance on the mailing activity statement is below the minimum balance 
required for two consecutive months. The USPS may also close an account 
with 10 days' written advance notice if the account remains inactive 
for three consecutive months, unless circumstances warrant otherwise 
(e.g., a seasonal mailer, positive balance, etc.).

Background

    The Postal Service is providing ACH debit as a new method of 
payment for EMCA customers and eliminating the option to open a new 
EMCA using a local trust account funded by cash and/or check deposits 
as part of the Postal Service's ongoing mission to help grow revenue in 
a competitive market by increasing efficiencies, enhancing financial 
controls, and reducing costs.
    By using an electronic payment option, customers will no longer 
have to go to a Post Office<SUP>TM</SUP> to make deposits into their 
EMCA trust accounts. This new payment option enhances financial control 
by reducing risk.

[[Page 48300]]

Summary

    This final rule eliminates the option to open a new EMCA using a 
local trust account funded by cash and/or check deposits and requires 
all new EMCA customers to fund their accounts using one of the 
following payment methods:
    a. Use a personal or business credit card.
    b. Authorize the USPS to originate an ACH debit from a specified 
bank account.
    c. Participate in the Centralized Account Processing System (CAPS) 
debit only if combined with other PostalOne![supreg] accounts such as 
permit imprint, Periodicals, and Business Reply Mail[supreg].
    This final rule also adds provisions to close an EMCA that apply as 
a result of the addition of ACH debit payments.

Implementation

    The addition of the ACH debit payment method, the elimination of 
cash and check deposits to open new local trust accounts, and the 
updated provisions to close an account are effective October 1, 2008.
    Existing EMCA customers who deposit cash and checks in local trust 
accounts will be transitioned to electronic payment methods. Details of 
this process will be directly communicated to affected EMCA customers.
    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), which is incorporated by reference in the Code of Federal 
Regulations. See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, 
and 5001.


0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:
* * * * *

400 Commercial Parcels

* * * * *

410 Express Mail

* * * * *

414 Postage Payment Methods

* * * * *

2.0 Corporate Accounts

* * * * *
[Revise the heading and text in 2.4 as follows:]

2.4 Payment Method

    For opening and maintaining an account, the mailer may do any of 
the following:
    a. Use a personal or business credit card.
    b. Authorize the USPS to originate an Automated Clearing House 
(ACH) debit from a specified bank account.
    c. Participate in the Centralized Account Processing System (CAPS) 
debit only if combined with other PostalOne! accounts such as permit 
imprint, Periodicals, and Business Reply Mail.
    d. Existing EMCA customers who deposit cash and checks in local 
trust accounts must maintain a minimum balance in the account equal to 
an average week's postage and fees, or $100, whichever is higher.
* * * * *

2.6 Closing Account

[Revise the text in 2.6 as follows:]
    The USPS may close an account with 10 days' written advance notice 
to the account holder (and reserves the right to refer closed corporate 
accounts with negative balances or unpaid mailings to a collection 
agency), for any of the following reasons:
    a. The ending balance on the mailing activity statement is below 
the minimum balance required for two consecutive months.
    b. The account remains inactive for three consecutive months, 
unless circumstances warrant otherwise (e.g., a seasonal mailer, 
positive balance, etc.).
    c. For any unpaid mailings.
    d. There are repetitive unpaid mailings due to rejection of payment 
by the account holders' credit card company or ACH institution. The 
closing of an account due to repetitive unpaid mailings caused by the 
rejection of the payment by the banking institution is subject to 
review by the manager, Business Mail Entry.
* * * * *

Neva R. Watson,
Attorney, Legislative.
 [FR Doc. E8-18886 Filed 8-18-08; 8:45 am]
BILLING CODE 7710-12-P