Circular
Automated Clearing House Changes
April 14, 1997
Circular No. 10942

New ACH Fee Schedule

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

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

    The Federal Reserve Board has announced further reductions in the Reserve Banks' automated clearing house (ACH) fees. The new ACH fee schedule is effective May 1, 1997.

    The Federal Reserve has reduced its ACH fees three times within the past twelve months. These prime reductions reflect the efficiencies of the Federal Reserve's centralized Fed ACH processing environment.

    Under the new ACH volume-based fee schedule, the cost to originate ACH transactions will decline by an average of 17 percent. Customers that deposit files of less than 2,500 items will be assessed a file fee of $1.75 and a per-item fee of $0.009. Customers that deposit files of more than 2,500 items will be assessed a file fee of $6.75 and a per-item fee of $0.007. The cost to receive ACH transactions will decline by 10 percent to $0.009 for all customers.

    The Federal Reserve Board also adopted guidelines for the use of volume-based fee structures for Reserve Bank payment services effective March 25, 1997. Volume-based fees are an extension of multi-part fees currently used by Reserve Banks. The use of volume-based fees has the potential to improve payment system efficiency.

A copy of the Board's notice, as published in the Federal Register of March 25, is available as a (pdf) file . Questions on this matter may be directed to Linda Rodgers of our Automated Payments Division.