Circular
Operating Circular No. 4 Revised
June 27, 2007
Circular No. 11872

Beginning January 1, 2007, the National Automated Clearing House Association (NACHA) began imposing network administration fees on all depository institutions that send or receive automated clearing house (ACH) items. The fees include an annual fee and a per-item fee. The Reserve Banks will bill and collect the new fees from their ACH customers on NACHA’s behalf.

To support this billing arrangement, two changes have been made to Operating Circular 4:

  • Section 1.4(b) has been revised to include the network administration fees as part of the applicable ACH rules that are incorporated into the operating circular.

  • A new section 18.2 has been added, which states that the Reserve Banks will charge for the network administration fees and that, apart from crediting a bank for a claimed overcharge of the fees under certain conditions, the Reserve Banks offer no other procedure for resolving disputes between a bank and NACHA about the fees.

The amendments are effective July 15, 2007, and your continued use of Reserve Bank services on or after that date constitutes agreement to the new terms of the operating circular.

See the operating circulars page of the Federal Reserve Financial Services website for the official version of the amended operating circular. To request a paper copy of any operating circular, contact your Customer Contact Center.