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Notice2021-26395

Federal Reserve Bank Services; Notice of Private Sector Adjustment Factor for 2022 and the 2022 Fee Schedules for Federal Reserve Priced Services and Electronic Access

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Published

December 6, 2021

Effective

January 3, 2022

Issuing agencies

Federal Reserve System

Abstract

The Board of Governors of the Federal Reserve System (Board) has approved the private sector adjustment factor (PSAF) for 2022 of $19.4 million and the 2022 fee schedules for Federal Reserve priced services and electronic access. These actions were taken in accordance with the Monetary Control Act of 1980, which requires that, over the long run, fees for Federal Reserve priced services be established based on all direct and indirect costs, including the PSAF.

Full Text

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<title>Federal Register, Volume 86 Issue 231 (Monday, December 6, 2021)</title>
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[Federal Register Volume 86, Number 231 (Monday, December 6, 2021)]
[Notices]
[Pages 69035-69055]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26395]

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FEDERAL RESERVE SYSTEM

[Docket No. OP-1760]

Federal Reserve Bank Services; Notice of Private Sector
Adjustment Factor for 2022 and the 2022 Fee Schedules for Federal
Reserve Priced Services and Electronic Access

SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has approved the private sector adjustment factor (PSAF) for 2022 of
$19.4 million and the 2022 fee schedules for Federal Reserve priced
services and electronic access. These actions were taken in accordance
with the Monetary Control Act of 1980, which requires that, over the
long run, fees for Federal Reserve priced services be established based
on all direct and indirect costs, including the PSAF.

DATES: The new fee schedules become effective January 3, 2022.

FOR FURTHER INFORMATION CONTACT: For questions regarding the fee
schedules: Susan Foley, Senior Associate Director, (202) 452-3596;
Kristopher Natoli, Manager, (202) 452-3227; Division of Reserve Bank
Operations and Payment Systems. For questions regarding the PSAF: Casey
Clark, Assistant Director, (202) 912-7978; Grace Milbank, Lead
Financial Institution Policy Analyst, (202) 263-4828, Division of
Reserve Bank Operations and Payment Systems. Copies of the 2022 fee
schedules for the Check Service are available from the Board, the
Federal Reserve Banks, or the Federal Reserve Financial Services
website at <a href="http://www.FRBservices.org">www.FRBservices.org</a>.

SUPPLEMENTARY INFORMATION:

I. Private Sector Adjustment Factor, Priced Services Cost Recovery, and
Overview of 2022 Price Changes

A. Overview--Each year, as required by the Monetary Control Act of
1980, the Reserve Banks set fees for priced services provided to
financial institutions.\1\ 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. The imputed costs and imputed
profit are collectively referred to as the private-sector adjustment
factor (PSAF).\2\
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\1\ On August 5, 2019, the Board announced that the Reserve
Banks will develop the FedNow\SM\ Service, an interbank real-time
gross settlement (RTGS) service with integrated clearing
functionality, to support the provision of end-to-end faster payment
services. The Board anticipates the FedNow Service will be available
in 2023. Following the introduction of the FedNow Service, the Board
will regularly disclose the service's cost recovery and will monitor
progress toward matching revenues and costs.
\2\ The business lines subject to the MCA are the
Fedwire[supreg] Funds Service, National Settlement Service, Fedwire
Securities Service, FedACH[supreg] Services, and Check Services.
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B. Long-run cost recovery--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
timeframe.\3\ In any given year, one or more priced services may under-
recover for a variety of reasons, including due to significant
investments to enhance a service.
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\3\ The Board 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.
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Through 2020, the Reserve Banks' long-run cost recovery was 103.5
percent of their total expenses (including imputed costs) and targeted
after-tax profits or return on equity

[[Page 69036]]

(ROE) for providing priced services.\4\ Over the same period, each of
the services over recovered except for the FedACH[supreg] Services. The
FedACH Services' under-recovery resulted from the Reserve Banks'
development and implementation of a multiyear technology initiative to
modernize the FedACH processing platform capabilities. While the
modernized platform was implemented in 2021, the Reserve Banks are
continuing to invest in platform capabilities, as well as resiliency
initiatives, as part of a broader enhancement strategy. At the same
time, the Reserve Banks have made minimal changes to existing FedACH
fees to provide price stability for customers. While the Reserve Banks
project the FedACH Services' long-run cost recovery through 2022 to be
97.4 percent, they ultimately expect the FedACH Services to return to
full cost recovery. The Reserve Banks project aggregate long-run cost
recovery across all services through 2021 and 2022 to be 103.1 percent
and 102.3 percent, respectively.
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\4\ 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 $630.7 million cumulative reduction in
equity related to the priced services' benefit plans through 2020.
Including this cumulative reduction in equity from 2011 to 2020
results in cost recovery of 95.6 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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C. Annual cost recovery--In 2021, the Federal Reserve implemented a
new cost accounting framework in parallel with a new Enterprise
Resource Planning application as part of a broader modernization
effort.\5\ Given the recent implementation of these changes, the
expense projections for 2022 presented in this notice reflect a greater
degree of uncertainty than in prior years. The Reserve Banks believe
that these projections are based on conservative assumptions and biased
toward higher costs and under-recovery. The Reserve Banks have
calibrated their 2022 financial planning accordingly.
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\5\ The Federal Reserve approved the new Cost Accounting
Strategic Planning and Reporting (CASPR), replacing the Planning
Control System cost accounting framework that was established in
1977 and refreshed in 2001. CASPR establishes cost-accounting
policies and provides uniform reporting structure for accumulating
and reporting cost data for priced, reimbursable, assessed, and
other central bank services for all Federal Reserve Banks. The
framework provides the rules that serve to ensure the consistent
application at all Reserve Banks of cost-accounting methodologies,
data comparability, and practical measures of the cost of providing
Federal Reserve services.
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Table 1 summarizes 2020 actual, 2021 estimated, and 2022 budgeted
annual cost recovery rates for all priced services. Cost recovery is
estimated to be 100.5 percent in 2021 and budgeted to be 97.1 percent
in 2022.

Table 1--Aggregate Priced Services Pro Forma Cost and Revenue Performance \a\
[Dollars in millions]
----------------------------------------------------------------------------------------------------------------
Recovery rate
Year Revenue Total expenses Net income Targeted ROE after targeted
(ROE) ROE (%)
1 \b\ 2 \c\ 3 4 \d\ 5 \e\
[1-2] [1/(2 + 4)]
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2020 (actual)................... 446.9 433.9 13.0 5.9 101.6
2021 (estimate)................. 464.9 458.4 6.5 4.4 100.5
2022 (budget)................... 477.2 484.3 (7.1) 7.2 97.1
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\a\ Calculations in this table and subsequent pro forma cost and revenue tables may be affected by rounding.
Excludes amounts related to the development of the FedNow Service.
\b\ Revenue includes imputed income on investments when equity is imputed at a level that meets minimum capital
requirements and, when combined with liabilities, exceeds total assets (attachment 1). For 2022, the projected
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.

Table 2 provides an overview of cost-recovery budgets, estimates,
and performance for the 10-year period from 2011 to 2020, 2020 actual,
2021 budget, 2021 estimate, and 2022 budget by priced service.

Table 2--Priced Services Cost Recovery
[Percent]
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2021 budget 2022 budget
Priced service 2011-2020 2020 actual \a\ 2021 estimate \b\
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All services.................... 103.5 101.6 98.7 100.5 97.1
Check........................... 108.9 103.2 97.7 99.1 94.3
FedACH.......................... 98.1 97.5 97.4 96.4 99.0
Fedwire[supreg] Funds and NSS... 102.6 105.3 100.5 106.0 97.0
Fedwire Securities.............. 102.3 101.1 100.9 100.4 97.2
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\a\ The 2021 budget figures reflect the final budgets as approved by the Board in December 2020.
\b\ The 2022 budget figures reflect preliminary budget information from the Reserve Banks. The Reserve Banks
will submit final budget data to the Board in November 2021, for Board consideration in December 2021.

[[Page 69037]]

1. 2021 Estimated Performance--The COVID-19 pandemic created a
heightened degree of uncertainty around forecasts of the priced
services' volumes and revenues. These challenges were reflected in the
Board's approval to keep most priced services' fees unchanged in 2021
and contributed to differences between the Reserve Banks' 2021 overall
cost-recovery original budget and current estimate. The Reserve Banks
estimate that they will recover 100.5 percent of the costs of providing
priced services in 2021, including total expense and targeted ROE,
compared with a 2021 budgeted recovery rate of 98.7 percent, as shown
in table 2. Overall, the Reserve Banks estimate that they will fully
recover actual and imputed costs and earn net income of $6.5 million,
compared with the targeted ROE of $4.4 million. The Reserve Banks
estimate that the Fedwire Funds and National Settlement Services, and
the Fedwire Securities Service will achieve full cost recovery;
however, the Reserve Banks estimate that the Check Services and FedACH
Services will not achieve full cost recovery in 2021. The Check
Services' estimated under-recovery is largely driven by the anticipated
further decline in check volumes. Consistent with recent years, the
FedACH Services will not achieve full cost recovery because of
investment costs associated with completing the multiyear technology
initiative to modernize its processing platform.\6\ This investment
enhanced efficiency, the overall quality of operations, and the Reserve
Banks' ability to offer additional services to financial institutions.
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\6\ The Reserve Banks engaged in a multiyear technology
initiative to modernize the FedACH processing platform capabilities,
which was implemented in 2021.
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2. 2022 Private-Sector Adjustment Factor--The 2022 PSAF for Reserve
Bank priced services is $19.4 million. This amount represents an
increase of $3.0 million from the 2021 PSAF of $16.4 million. This
increase is primarily the result of an increased cost of meeting the
PSR Policy.
3. 2022 Projected Performance--The Reserve Banks project a priced
services cost recovery rate of 97.1 percent in 2022, with a net loss of
$7.1 million and targeted ROE of $7.2 million. The Reserve Banks
project that each of the individual service lines will under-recover in
2022. The Fedwire Funds Service and National Settlement Service are
expected to under recover due to ongoing technology investments,
including those associated with the Fedwire Funds Service transitioning
to the ISO[supreg] 20022 messaging format. The Fedwire Securities
Service is expected to under-recover due to the timing of a strategic
transition to more accurately allocate the costs of providing the
service. The Check Services' under-recovery projections are largely
driven by an anticipated further decline in check volumes, while the
FedACH Services under-recovery projection is driven by continued
technology modernization and resiliency initiatives.
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.\7\
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\7\ The Reserve Banks are preparing to deliver services to the
industry via Application Programming Interfaces (API) to the
industry in 2022. APIs are a set of protocols for connecting
software systems programmatically, enabling system-to-system
interoperability. Communication will be forthcoming on timing and
availability of initial APIs.
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4. 2022 Pricing--The following summarizes the Reserve Banks'
changes in fee schedules for priced services in 2022:

Check

<bullet> The Reserve Banks will reassign the tier placement of
1,210 and 54 endpoints within FedForward[supreg] and FedReturn[supreg]
Services, respectively.\8\ Related to that reassignment, the Reserve
Banks will lower the volume thresholds by 7 percent for FedForward
tiers and 20 percent for FedReturn tiers.
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\8\ The Reserve Banks evaluate and set tier assignments every
other year based on changes in the volume of items received by
endpoints.
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<bullet> The Reserve Banks will lower the daily fixed fees for the
FedForward Standard Daily A and B deposit options, by $25 and $50,
respectively, and the FedForward Premium Daily A, B, and C deposit
options, by $100, $200, and $300, respectively.
<bullet> The Reserve Banks will lower the volume thresholds by 7
percent for both Retail Payments Premium Receivers (RPPR) customers and
non-RPPR customers within the FedReceipt[supreg] Accelerated Forward
Delivery Service. The Reserve Banks will also remove the highest level
of discount available to non-RPPR customers.
<bullet> The Reserve Banks will increase the tiered pricing
structure for the monthly Check 21 participation fee with fees ranging
from $55 to $225.
<bullet> The Reserve Banks will increase the FedReceipt Premium
Delivery per-item fees by $0.006 for the 8:00 a.m. ET Target, $0.003
for the 10:00 a.m. Target, and $0.003 for the 12:00 noon Target.\9\
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\9\ The 8:00 a.m. delivery target is expressed in eastern time,
while the 10:00 a.m. and 12:00 noon targets are local time.
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FedACH

<bullet> The Reserve Banks will increase the FedLine Web[supreg]-
originated Return and Notification of Change (NOC) fee by $0.15.
<bullet> The Reserve Banks will increase pricing tiers for the
FedPayments[supreg] Reporter Service by approximately 10 percent.
<bullet> The Reserve Banks will discontinue the $20 monthly bundled
service package discount.

Fedwire Funds

<bullet> The Reserve Banks will increase the monthly participation
fee from $95 to $100.
<bullet> The Reserve Banks will increase the tier 1 volume-based
pre-incentive transfer fee from $0.84 to $0.88.
<bullet> The Reserve Banks will increase the tier 2 volume-based
pre-incentive transfer fee from $0.25 to $0.255.
<bullet> The Reserve Banks will increase the tier 3 volume-based
pre-incentive transfer fee from $0.165 to $0.17.
<bullet> The Reserve Banks will increase the surcharge for offline
transfers from $65 to $70.

National Settlement Service

<bullet> The Reserve Banks will keep prices at existing levels for
all existing priced National Settlement Service products.

Fedwire Securities

<bullet> The Reserve Banks will decrease the agency transfer fee
from $0.98 to $0.77.

FedLine[supreg] Solutions

<bullet> The Reserve Banks will increase the price for
FedMail[supreg] Fax Service from $150 to $200.
<bullet> The Reserve Banks will increase the price for FedMail
Email Service (for customers with FedLine Web and above) from $40 to
$60.
<bullet> The Reserve Banks will increase the price for FedLine
Subscribers--Pack of 5 from $80 to $100.
D. Private Sector Adjustment Factor--The imputed debt financing
costs, targeted ROE, and effective tax rate are based on a U.S.
publicly traded firm market model.\10\ 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

[[Page 69038]]

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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\10\ 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
postemployment and postretirement benefits, accounts payable, and other
liabilities. The priced portion of the actual net pension asset or
liability is also included on the balance sheet.\11\
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\11\ The pension assets are netted with the pension liabilities
and reported as a net asset or net liability as required by ASC 715
Compensation--Retirement Benefits.
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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 federal corporate income tax rates are
graduated, state income tax rates vary, and various credits and
deductions can apply, an actual income tax expense is not explicitly
calculated for Reserve Bank priced services. Instead, the Board targets
a pretax ROE that would provide sufficient income to fulfill the priced
services' imputed income tax obligations. To the extent that
performance results are greater or less than the targeted ROE, income
taxes are adjusted using the effective tax rate.
Capital structure. The capital structure is imputed based on the
imputed funding need (assets less liabilities), subject to minimum
equity constraints. Short-term debt is imputed to fund the imputed
short-term funding need. Long-term debt and equity are imputed to meet
the priced services long-term funding need at a ratio based on the
capital structure of the U.S. publicly traded firm market. The level of
equity must meet the minimum equity constraints, which follow the FDIC
requirements for a well-capitalized institution. The priced services
must maintain equity of at least 5 percent of total assets and 10
percent of risk-weighted assets.\12\ 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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\12\ The FDIC rule, which was adopted as final on April 14,
2014, requires that well-capitalized institutions meet or exceed the
following standards: (1) Total capital to risk-weighted assets ratio
of at least 10 percent, (2) tier 1 capital to risk-weighted assets
ratio of at least 8 percent, (3) common equity tier 1 capital to
risk-weighted assets ratio of at least 6.5 percent, and (4) a
leverage ratio (tier 1 capital to total assets) of at least 5
percent. Because all of the Federal Reserve priced services' equity
on the pro forma balance sheet qualifies as tier 1 capital, only
requirements 1 and 4 are binding. The FDIC rule can be located at
<a href="https://www.fdic.gov/news/board/2014/2014-04-08_notice_dis_c_fr.pdf">https://www.fdic.gov/news/board/2014/2014-04-08_notice_dis_c_fr.pdf</a>.
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Application of the 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 Infrastructure \13\ and the Technical
Committee of the International Organization of Securities Commissions
in the Principles for Financial Market Infrastructures. The policy
requires that the Fedwire Funds Service meet or exceed the applicable
risk-management standards. 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.\14\
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 2022 budget, six months of current operating expenses would
be $77.6 million. In 2022, $46.8 million of equity was imputed to meet
the FDIC capital requirements. Additional equity of $30.8 million was
necessary to meet the PSR policy requirement.
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\13\ Formerly the Committee on Payment and Settlement Systems.
\14\ This requirement does not apply to the Fedwire Securities
Service. There are no competitors to the Fedwire Securities Service
that would face such a requirement, and 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 firm market over the past five years.
Debt and equity financing. The imputed short- and long-term debt
financing rates are derived from the nonfinancial commercial paper
rates from the Federal Reserve Board's H.15 Selected Interest Rates
release (AA and A2/P2) and the annual Merrill Lynch Corporate & High
Yield Index rate, respectively. The equity financing rate is described
above. The rates for debt and equity financing are applied to the
priced services estimated imputed short-term debt, long-term debt, and
equity needed to finance short- and long-term assets and meet equity
requirements.
The 2022 PSAF is $19.4 million, compared with $16.4 million in
2021. The increase of $3.0 million is attributable to a net $3.1
million increase in the cost of capital. The net $3.1 million increase
in cost of capital resulted from an incremental $3.6 million increase
in return on imputed equity necessary for PSR policy compliance
partially offset by a $0.3 million decrease in the cost of debt and a
$0.2 million decrease in the return on equity imputed to satisfy the
FDIC requirements for a well-capitalized institution.

[[Page 69039]]

The PSAF expense of $19.4 million, detailed in table 5, reflects
$9.0 million for capital funding, $6.2 million for BOG expense, and
$4.2 million in sales tax expense.
As shown in table 3, 2022 total assets of $790.1 million decreased
by $0.5 million from 2021. The net decrease in total assets reflects a
$55.9 million decrease in long-term assets partially offset by a $55.4
million increase in short-term assets and imputed investments.
The net long-term asset decrease of $55.9 million primarily
consists of a $65.9 million decrease in the net pension asset. The net
pension asset decrease reflects lower plan contributions planned for
2021 and for 2022. The reclassification of assets between Premises and
Furniture and equipment and the reclassification of assets between
long-term Software and leasehold improvements and short-term Prepaid
expenses primarily reflect accounting policy changes.\15\ The increase
in the deferred tax asset is due to increases expected from demographic
experiences.
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\15\ The Financial Accounting Manual for the Federal Reserve
Bank: Summary of Revisions describes the accounting policy changes
impacting asset reclassifications. Available at <a href="https://www.federalreserve.gov/aboutthefed/summary-of-revisions.htm">https://www.federalreserve.gov/aboutthefed/summary-of-revisions.htm</a>.
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The increase in the short-term assets is primarily driven by a
$101.9 million increase in the imputed investments in Treasury
securities from imputed equity required to meet FDIC capital
requirements for a well-capitalized institution and to comply with the
PSR policy and a $19.7 million increase in prepaid expenses partially
offset by a $70.0 million decrease in imputed investments in Fed Funds.
The capital structure of the 2022 pro forma balance sheet, provided
in table 4, is composed of equity of $77.6 million, or 16.6 percent of
the 2022 risk-weighted assets detailed in table 6, and no long-term
debt. The 2022 capital structure differs from that of 2021, which was
composed of $51.8 million of equity and $9.1 million of long-term debt.
Provided in table 5, the 2022 initially imputed equity required to fund
assets and meet the publicly traded firm model capital requirements is
negative $9.9 million. As long-term liabilities are greater than long-
term assets, long-term debt of negative $14.4 million was imputed at
the observed market ratio of 59.1 percent. To meet the FDIC capital
requirements for a well-capitalized institution, $14.4 million of
negative imputed long-term debt was substituted for equity, and
additional equity of $56.7 million was imputed to meet the FDIC capital
requirements. The resulting $46.8 million total level of equity was not
sufficient to satisfy the $77.6 million equity needed for the PSR
policy requirements and additional equity of $30.8 million was imputed.
The net Accumulated Other Comprehensive loss is $687.7 million,
compared with $628.2 million in 2021. The $59.5 million decrease is
primarily attributable to a lower discount rate and demographic
experiences. AOCI is in a net loss position and does not reduce the
total imputed equity required to fund priced services assets or fulfill
the FDIC equity requirements for a well-capitalized institution.
BILLING CODE 6210-01-P

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BILLING CODE 6210-01-C
E. Check Service--Table 7 shows the 2020 actual, 2021 estimated,
and 2022 budgeted cost-recovery performance for the commercial check
service.
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\16\ 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.
\17\ Consistent with the Board's PSR policy, the Reserve Banks'
priced services will hold an amount equivalent to six months of the
Fedwire Funds Service's current operating expenses as liquid net
financial assets and equity on the pro forma balance sheet. Six
months of the Fedwire Funds Service's projected current operating
expenses is $77.6 million. In 2022, $30.8 million of equity was
imputed to meet the regulatory capital requirements.
\18\ Includes the allocation of Board of Governors assets to
priced services of $2.1 million for 2022 and $2.4 million for 2021.
\19\ Includes the allocation of Board of Governors liabilities
to priced services of $1.3 million for 2022 and $1.0 million for
2021.
\20\ Includes an accumulated other comprehensive loss of $687.7
million for 2022 and $628.2 million for 2021, 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.
\21\ 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.
\22\ 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 2021, the amount of imputed equity met the minimum equity
requirements for risk-weighted assets.
\23\ 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.
\24\ Additional equity in excess of that needed to fund priced
services assets is offset by an asset balance of imputed investments
in treasury securities.
\25\ Imputed short-term debt and long-term debt are computed at
table 4.
\26\ The 2022 ROE is equal to a risk-free rate plus a risk
premium (beta * market risk premium). The 2021 after-tax CAPM ROE is
calculated as 0.05% + (1.0 * 9.16%) = 9.21%. Using a tax rate of
20.3%, the after-tax ROE is converted into a pretax ROE, which
results in a pretax ROE of (9.21%/(1-20.3%)) = 11.55%. Calculations
may be affected by rounding.
\27\ If minimum equity constraints are not met after imputing
equity based on all other financial statement components, additional
equity is imputed to meet these constraints. Additional equity
imputed to meet minimum equity requirements is invested solely in
Treasury securities. The imputed investments are similar to those
for which rates are available on the Federal Reserve's H.15
statistical release, which can be located at <a href="http://www.federalreserve.gov/releases/h15/data.htm">http://www.federalreserve.gov/releases/h15/data.htm</a>.
\28\ The investments are imputed based on the amounts arising
from the collection of items before providing credit according to
established availability schedules.

[[Page 69044]]

Table 7--Check 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 4 5
[1 - 2] [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2020 (actual)................... 114.1 109.3 4.8 1.3 103.2
2021 (estimate)................. 109.0 108.9 0.1 1.1 99.1
2022 (budget)................... 105.2 110.5 (5.3) 1.0 94.3
----------------------------------------------------------------------------------------------------------------

1. 2021 Estimate--The Reserve Banks estimate that the check service
will recover 99.1 percent of total expenses and targeted ROE, compared
with a 2021 budgeted recovery rate of 97.7 percent.
Through June, total commercial forward and total commercial return
check volumes were 2.5 percent and 16.4 percent lower, respectively,
than they were during the same period last year. For full-year 2021,
the Reserve Banks estimate that their total forward check volume will
decline 3.0 percent (compared with a budgeted decline of 5.0 percent)
and their total return check volume will decline 8.1 percent (compared
with a budgeted decline of 7.0 percent) from 2020 levels. The Reserve
Banks expect that check volumes will continue to decline, although
uncertainty remains as to the rate of decline into 2022. In particular,
the Reserve Banks' check volumes are expected to decline because of
substitution away from checks to other payment instruments.
2. 2022 Pricing--The Reserve Banks expect Check Services to recover
94.3 percent of total expenses and targeted ROE in 2022. The Reserve
Banks project revenue to be $105.2 million, a decline of 3.4 percent
from the 2021 estimate. Total expenses for Check Services are projected
to be $110.5 million, an increase of $1.6 million, or 1.5 percent, from
2021 estimated expenses.
The Reserve Banks will increase the pricing tiers for the fixed
monthly participation fee. In light of the ongoing volume declines, the
changes are intended to continue to support revenue stability through
fixed fees while minimizing the impact of fee increases on smaller
institutions, taking into account higher system utilization costs
associated with higher volumes from larger institutions. Table 8 shows
the 2022-tiered participation fees.

Table 8--Check 21 Participation Fee Structure
------------------------------------------------------------------------
Tier \29\ Monthly fee
------------------------------------------------------------------------
1......................................... $225.00
2......................................... 140.00
3......................................... 90.00
4......................................... 55.00
------------------------------------------------------------------------

The Reserve Banks evaluate and set tier assignments every other
year based on changes in the volume of items received by endpoints.\30\
In 2022, the Reserve Banks will reassign the tier placement of 1,210
endpoints for FedForward services and 54 endpoints for FedReturn
services. As part of this year's analysis, the Reserve Banks also
reviewed the volume thresholds as overall industry check volumes
continue to decline and endpoints naturally move into higher priced
tiers. Therefore, to minimize customer impact, the Reserve Banks will
lower the tiered FedForward volume thresholds by 7 percent and the
tiered FedReturn thresholds by 20 percent.
---------------------------------------------------------------------------

\29\ 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 (GCD). Each financial
institution's tier assignment is determined by the criteria
described in the FedForward Standard Endpoint Tier Listing.
\30\ In 2019, in response to feedback from customers, the
Reserve Banks decided to evaluate and set tier assignments every
other year instead of annually to provide more certainty and price
stability to the industry. The Reserve Banks last evaluated and set
tier assignments for the 2020 fee schedules.
---------------------------------------------------------------------------

Based on the 2022 tier assignments, the Reserve Banks will include
changes to the daily fixed fees for the FedForward Standard Daily and
FedForward Premium Daily deposit options. The Reserve Banks will lower
the daily fixed fees for FedForward Standard Daily A and FedForward
Standard Daily B image cash letters by $25 and $50, respectively. The
Reserve Banks will lower the daily fixed fees for the FedForward
Premium Daily A, FedForward Premium Daily B, and FedForward Premium
Daily C image cash letters by $100, $200, and $300, respectively.
The Reserve Banks will also lower the volume discount thresholds
associated with the FedReceipt Accelerated Forward Delivery service to
align them with overall industry volume decline and allow customers to
continue to qualify for volume-based discounts. The Reserve Banks will
lower the thresholds by 7 percent, for both Retail Payments Premium
Receivers (RPPR) and non-RPPR discount levels. The Reserve Banks will
also remove the higher discount level previously available to non-RPPR
customers.
Lastly, the Reserve Banks will increase the per-item fee for the
FedReceipt Premium Delivery 8:00 a.m. ET target by $0.006 to $0.032,
for the 10:00 a.m. target by $0.003 to $0.020, and for the 12:00 noon
target by $0.003 to $0.015.\31\ The fee increases are intended to
continue pursuing value-based pricing for those financial institutions
that use the service. The Reserve Banks estimate the above price
changes, along with an expected decrease in volume, will result in an
overall 3.4 percent average price increase for Check Services'
customers.
---------------------------------------------------------------------------

\31\ FedReceipt Services consist of the electronic presentment
of an image cash letter to the paying bank that consists of all
forward items deposited electronically. The 8:00 a.m. delivery
target is expressed in eastern time, while the 10:00 a.m. and 12:00
noon targets are local time.
---------------------------------------------------------------------------

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 and competition from correspondent
banks, aggregators, and direct exchanges, which would result in lower-
than-anticipated revenue.
F. FedACH Services--Table 9 shows the 2020 actual, 2021 estimate,
and 2022 budgeted cost-recovery performance for the commercial FedACH
Services.

[[Page 69045]]

Table 9--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 4 5
[1 - 2] [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2020 (actual)................... 159.4 161.5 (2.1) 2.0 97.5
2021 (estimate)................. 164.6 169.2 (4.6) 1.6 96.4
2022 (budget)................... 173.2 173.5 (0.3) 1.5 99.0
----------------------------------------------------------------------------------------------------------------

1. 2021 Estimate--The Reserve Banks estimate that the FedACH
Services will recover 96.4 percent of total expenses and targeted ROE,
compared with a budgeted recovery rate of 97.4 percent.
Through June, FedACH commercial origination and receipt volume was
11.1 percent higher than it was during the same period last year. For
full-year 2021, the Reserve Banks estimate that FedACH commercial
origination and receipt volume will increase 8.1 percent from 2020
levels, compared with a 2020 budgeted increase of 3.6 percent.
Investment costs associated with the multiyear technology initiative to
modernize the FedACH processing platform drove the overall under-
recovery rate.
2. 2022 Pricing--The Reserve Banks expect the FedACH Services to
recover 99.0 percent of total expenses and targeted ROE in 2022. The
Reserve Banks project revenue to be $173.2 million, an increase of 5.2
percent from the 2021 estimate. Total expenses are projected to be
$173.5 million, an increase of 2.5 percent from 2021 expenses.
The Reserve Banks will increase the FedLine Web-originated Return
and Notification of Change (NOC) fee by $0.15 as the service will now
allow a Receiving Depository Financial Institution (RDFI) to derive
their own returns and NOCs for a payment presented through FedACH
beyond the current 60 business day limitation to two years.
The Reserve Banks will increase the pricing tiers for the
FedPayments Reporter Service for FedACH Services by approximately 10
percent given the enhancements made to the service in recent years.\32\
The Reserve Banks will also discontinue the $20 monthly bundled service
package discount given limited customer uptake in recent years.\33\ The
Reserve Banks estimate the above price changes, along with an expected
increase in volume, will result in an overall 1.3 percent average price
increase for FedACH customers.
---------------------------------------------------------------------------

\32\ The target fee change is approximately 10 percent rounded
to $5 increments.
\33\ To qualify for the discount, a financial institution must
have met all of the following criteria in a given month: (1) Be
charged the minimum monthly fee for forward origination; (2)
subscribe to FedLine Web Plus or any higher FedLine access solution;
and (3) subscribe to the FedPayments Reporter Service, the FedACH
RDFI Alert Service, or the FedACH Risk Origination Monitoring
Service.
---------------------------------------------------------------------------

The Reserve Banks expect the FedACH Services to return to full cost
recovery over the long run and will continue to assess pricing
strategies that balance price stability with ongoing investments in
technology infrastructure. The Reserve Banks' primary risks to current
projections for the FedACH Services are unanticipated cost overruns
associated with continued technology and resiliency investments and
lower than projected volumes.
G. Fedwire Funds Service and National Settlement Service--Table 10
shows the 2020 actual, 2021 estimate, and 2022 budgeted cost-recovery
performance for the Fedwire Funds Service and the National Settlement
Service.

Table 10--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 4 5
[1 - 2] [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2020 (actual)................... 144.6 135.0 9.6 2.3 105.3
2021 (estimate)................. 163.7 153.0 10.7 1.4 106.0
2022 (budget)................... 175.0 176.1 -1.1 4.3 97.0
----------------------------------------------------------------------------------------------------------------

1. 2021 Estimate--The Reserve Banks estimate that the Fedwire Funds
Service and the National Settlement Service will recover 106 percent of
total expenses and targeted ROE, compared with a budgeted recovery rate
of 100.5 percent.
Through June, Fedwire Funds Service online volume was 16.7 percent
higher than it was during the same period last year. For full-year
2021, the Reserve Banks estimate that Fedwire Funds Service online
volume will increase 18.1 percent from 2020 levels, compared with the
2.4 percent volume decrease that had been budgeted. Through June, the
National Settlement Service settlement file volume was 0.9 percent
higher than it was during the same period last year, and settlement
entry volume was 3.6 percent higher. For the full year, the Reserve
Banks estimate that settlement file volume will increase 1.0 percent
(compared with a budgeted increase of 0.7 percent) and settlement entry
volume will increase 4.3 percent from 2020 levels (compared with a
budgeted 0.5 percent increase).
2. 2022 Pricing--The Reserve Banks expect the Fedwire Funds Service
and the National Settlement Service to

[[Page 69046]]

recover 97.0 percent of total expenses. Revenue is projected to be
$175.0 million, an increase of 6.9 percent from the 2021 estimate. The
Reserve Banks project total expenses to be approximately $23.1 million
higher than 2021 expenses, an increase of 15 percent, primarily
reflecting ongoing technology investments, including those associated
with Fedwire Funds Service transition to the ISO 20022 messaging
format, and higher operating costs.\34\
---------------------------------------------------------------------------

\34\ In October 2021, the Board announced that the Federal
Reserve Banks will adopt the ISO[supreg] 20022 message format for
the Fedwire[supreg] Funds Service. See New Message Format for the
Fedwire[supreg] Funds Service, 86 FR 55600 (Oct. 6, 2021).
---------------------------------------------------------------------------

The Reserve Banks will increase all three of the gross origination
and receipt tiered fees. The tier 1 fee will increase from $0.84 to
$0.88, the tier 2 fee will increase from $0.25 to $0.255, and the tier
3 fee will increase from $0.165 to $0.17. In addition, the monthly
participation fee will increase from $95.00 to $100.00 and the offline
send and receive surcharge for the Fedwire Funds Service will increase
from $65.00 to $70.00. The Reserve Banks estimate the above price
changes, along with an expected increase in volume, will result in an
overall 7.7 percent average price increase for Fedwire Funds Service
customers.
The Reserve Banks will not change National Settlement Service fees
for 2022.
The Reserve Banks' primary risk to current projections for these
services is an overrun in technology investments and an increase in
operating costs. Unanticipated decreases in volume may also negatively
impact cost recovery.
H. Fedwire Securities Service--Table 11 shows the 2020 actual, 2021
estimate, and 2022 budgeted cost-recovery performance for the Fedwire
Securities Service.\35\
---------------------------------------------------------------------------

\35\ The Reserve Banks provide transfer services for securities
issued by the U.S. Treasury, federal government agencies,
government-sponsored enterprises, and certain international
institutions. The priced component of this service, reflected in
this memorandum, consists of revenues, expenses, and volumes
associated with the transfer of all non-Treasury securities. For
Treasury securities, the U.S. Treasury assesses fees for the
securities transfer component of the service. The Reserve Banks
assess a fee for the funds settlement component of a Treasury
securities transfer; this component is not treated as a priced
service.

Table 11--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 4 5
[1 - 2] [1/(2 + 4)]
----------------------------------------------------------------------------------------------------------------
2020 (actual)................... 28.8 28.1 0.7 0.3 101.1
2021 (estimate)................. 27.6 27.2 0.4 0.3 100.4
2022 (budget)................... 23.7 24.2 -0.5 0.2 97.2
----------------------------------------------------------------------------------------------------------------

1. 2021 Estimate--The Reserve Banks estimate that the Fedwire
Securities Service will recover 100.4 percent of total expenses and
targeted ROE, compared with a 2021 budgeted recovery rate of 100.9
percent. The Reserve Banks estimate revenue to be $27.6 million, an
increase of 5.7 percent from the 2021 budget.
For full-year 2021, volume for account maintenance is expected to
decline from 2020 levels, while volumes for issue maintenance are
expected to increase modestly from 2020 levels. Through June, account
maintenance volume was 4.7 percent lower than it was during the same
period last year. For full-year 2021, the Reserve Banks estimate that
account maintenance volume will decline 4.4 percent from 2020 levels,
compared with a budgeted decline of 3.4 percent. Through June, the
number of agency issues maintained was 0.2 percent higher than it was
during the same period last year. For full-year 2021, the Reserve Banks
estimate that the number of agency issues maintained will increase 0.5
percent from 2020 levels, compared with a budgeted decline of 3.1
percent.
2. 2022 Pricing--The Reserve Banks expect the Fedwire Securities
Service to recover 97.2 percent of total expenses and targeted ROE in
2022. Revenue is projected to be $23.7 million, a decrease of 14.1
percent from the 2021 revenue estimate. The Reserve Banks also project
that 2022 expenses will decrease by $3 million from the 2021 estimate,
a decrease of 11 percent.
The Reserve Banks project that agency transfer volume will decrease
by 25 percent in 2022 from 2021 estimates driven by expectations of a
slowdown in refinancing. The volume of accounts maintained are expected
to decrease 4.4 percent, consistent with recent trends, and the volume
of agency issues maintained is expected to remain relatively flat.
The Reserve Banks will decrease the agency transfer fee from $0.98
to $0.77 as part of a strategic transition to more accurately allocate
the costs of providing the service and to align fees across security
types. Since transfers of agency securities constitute approximately 20
percent of Fedwire Securities Service total volume, the overall impact
of fee changes is substantially dependent on the level at which
Treasury sets the fees for transfers of Treasuries securities. The
Reserve Banks are working with the Treasury to strategically align fees
and will continue to do so to ensure that customers are not negatively
impacted.
The Reserve Banks' primary risks to current projections for Fedwire
Securities Service are lower-than-expected volumes and higher-than-
expected costs stemming from technology initiatives related to
operational functionality and resiliency.
G. FedLine Solutions--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.\36\ There are six FedLine
channels through which customers can access the Reserve Banks' priced
services: FedMail, FedLine Exchange[supreg], FedLine Web, FedLine
Advantage[supreg], FedLine Command[supreg] and FedLine
Direct[supreg].\37\ The Reserve Banks bundle these channels into eleven
FedLine packages, described below, that are supplemented by a number of

[[Page 69047]]

premium (or [agrave] la carte) access and accounting information
options. In addition, the Reserve Banks offer FedComplete[supreg]
packages, which are bundled offerings of FedLine connections and a
fixed number of FedACH Services, Fedwire Funds Service, and Check 21-
enabled transactions.
---------------------------------------------------------------------------

\36\ FedLine Solutions provide customers with access to Reserve
Bank priced services. As such, FedLine costs and revenue are
allocated to the Reserve Banks' priced services on an expense ratio
basis.
\37\ FedMail, FedLine Exchange, FedLine Web, FedLine Advantage,
FedLine Command, and FedLine Direct are registered trademarks of the
Federal Reserve Banks.
---------------------------------------------------------------------------

Eight attended access packages offer manual access to critical
payment and information services via a web-based interface. The FedMail
package provides access to basic information services via email, while
the two FedLine Exchange packages are designed to provide certain
services, such as the E-Payments Routing Directory, to customers that
otherwise do not use FedLine for any payment services. Two FedLine Web
packages offer online attended access to a range of services, including
cash services, FedACH information services, and Check services. Three
FedLine Advantage packages expand upon the FedLine Web packages and
offer attended access to critical transactional services: FedACH,
Fedwire Funds, and Fedwire Securities.
Three unattended access packages are computer-to-computer, internet
Protocol (IP)-based interfaces. The FedLine Command package offers an
unattended connection to FedACH as well as to most accounting
information services. The two remaining options are FedLine Direct
packages, which 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 Reserve Banks propose to increase the monthly fees for FedMail
Fax service from $150 to $200, and FedMail Email service from $40 to
$60. FedMail Fax service is available a la carte for all FedLine
Solutions access packages, and FedMail Email service is available a la
carte only for FedLine Web or higher packages.\38\ The Reserve Banks
will also align the delivery of all daylight overdraft reports
exclusively through the Account Management Information (AMI)
application via the FedLine Web[supreg] and FedLine Advantage[supreg]
Solutions, eliminating their availability through the FedMail[supreg]
Service. The Reserve Banks seek to provide not only highly secure,
modern access solutions, but also to enhance the customer experience
through access to value-added services not available on legacy
technology.
---------------------------------------------------------------------------

\38\ In 2018, the Board of Governors approved stopping the
onboarding of new subscribers to the FedMail[supreg] Fax service
effective January 1, 2019.
---------------------------------------------------------------------------

In addition, the Reserve Banks propose to increase the monthly fee
for the FedLine Subscribers--Pack of 5 from $80 to $100. The proposed
price increase is to support FedLine modernization efforts. The Reserve
Banks are focused on updating network architecture and supporting
processes to deliver greater access and availability, improved
resiliency, and increased automation. The Reserve Banks estimate the
above price changes will result in a 6.7% 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 March 1990 policy ``The
Federal Reserve in the Payments System.'' \39\ 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 because of
differing legal powers or constraints or because of a dominant market
position deriving from such legal differences. If any proposed changes
create such an effect, the Board must further evaluate the changes to
assess whether the benefits associated with the changes--such as
contributions to payment system efficiency, payment system integrity,
or other Board objectives--can be achieved while minimizing the adverse
effect on competition.
---------------------------------------------------------------------------

\39\ Federal Reserve Regulatory Service (FRRS) 9-1558.
---------------------------------------------------------------------------

The 2022 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. The Reserve Banks expect to continue to achieve
aggregate long-run cost recovery across all priced services.

III. 2022 Fee Schedules

FedACH Services 2022 Fee Schedule
[Effective January 3, 2022. Bold indicates changes from 2021 prices.]
------------------------------------------------------------------------
Fee
------------------------------------------------------------------------
FedACH minimum monthly fee:
Originating depository financial $50.00
institution (ODFI) \40\.
Receiving depository financial $40.00.
institution (RDFI) \41\.
Origination (per item or record):
Forward or return items......... $0.0035.
SameDay Service--forward item $0.0010 surcharge
\42\.
Addenda record................... $0.0015.
FedLine Web-originated returns $0.50.
and notification of change (NOC)
\43\.
Facsimile Exception Return/NOC $45.00.
\44\.
SameDay Exception Return......... $45.00.
Automated NOC.................... $0.20.
Volume discounts (based on
monthly billed origination
volume) \45\ per item when
origination volume is:
750,001 to 1,500,000 items $0.0008 discount.
per month.
more than 1,500,000 items per $0.0010 discount.
month.
Volume discounts (based on
monthly billed receipt volume)
\46\ per item when receipt
volume is:
10,000,001 to 15,000,000 $0.0002 discount.
items per month.
more than 15,000,000 items $0.0003 discount.
per month.
Receipt (per item or record):
Forward Item..................... $0.0035.
Return Item...................... $0.0075.
Addenda record................... $0.0015.
Volume discounts:

[[Page 69048]]

Non-Premium Receivers \47\
per item when volume is:
750,001 to 12,500,000 $0.0017 discount
items per month \48\.
more than 12,500,000 $0.0019 discount
items per month \49\.
Premium Receivers, Level One
\50\ per item when volume
is:
750,001 to 1,500,000 $0.0017 discount.
items per month \48\.
1,500,001 to 2,500,000 $0.0017 discount.
items per month \49\.
2,500,001 to 12,500,000 $0.0018 discount.
items per month \49\.
more than 12,500,000 $0.0020 discount.
items per month \49\.
Premium Receivers, Level Two
\51\ per item when volume
is:
750,001 to 1,500,000 $0.0017 discount.
items per month \48\.
1,500,001 to 2,500,000 $0.0017 discount.
items per month \49\.
2,500,001 to 12,500,000 $0.0019 discount.
items per month \49\.
more than 12,500,000 $0.0021 discount.
items per month \49\.
FedACH Risk[supreg] Management
Services: \52\
Monthly Package Fee (a single fee
based on total number of
criteria sets):
For up to 5 criteria sets.... $35.00.
For 6 through 11 criteria $70.00.
sets.
For 12 through 23 criteria $125.00.
sets.
For 24 through 47 criteria $150.00.
sets.
For 48 through 95 criteria $250.00.
sets.
For 96 through 191 criteria $425.00.
sets.
For 192 through 383 criteria $675.00.
sets.
For 384 through 584 criteria $850.00.
sets.
For more than 584 criteria $1,100.00.
sets.
Batch/Item Monitoring (based on
total monthly volume):
For 1 through 100,000 batches $0.007.
(per batch).
For more than 100,000 batches $0.0035.
(per batch).
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.
\53\.
Monthly Package Fee (counts reflect
reports generated as well as
delivered via a FedLine Solution):
For up to 50 reports............. $45.00.
For 51 through 150 reports....... $65.00.
For 151 through 500 reports...... $120.00.
For 501 through 1,000 reports.... $220.00.
For 1,001 through 1,500 reports.. $320.00.
For 1,501 through 2,500 reports.. $505.00.
For 2,501 through 3,500 reports.. $705.00.
For 3,501 through 4,500 reports.. $900.00.
For 4,501 through 5,500 reports.. $1095.00.
For 5,501 through 7,000 reports.. $1,350.00.
For 7,001 through 8,500 reports.. $1,585.00.
For 8,501 through 10,000 reports. $1,815.00.
For more than 10,000 reports..... $1,980.00.
Premier reports (per report
generated): \53\
ACH Volume Summary by SEC
Code Report--Depository
Financial Institution:
For 1 through 5 reports.. $10.00.
For 6 through 10 reports. $6.00.
For 11 or more reports... $1.00.
On Demand Surcharge...... $1.00.
ACH Routing Number Activity
Report:
For 1 through 5 reports.. $10.00.
For 6 through 10 reports. $6.00.
For 11 or more reports... $1.00.
On Demand Surcharge...... $1.00.

[[Page 69049]]

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 \54\ $65.00.
SameDay Service Origination $10.00.
Participation Fee \55\.
FedACH Settlement Fee \56\... $55.00.
FedACH Information File $150.00.
Extract Fee.
IAT Output File Sort Fee..... $75.00.
Fixed Participation Fee-- $5.00.
Automated NOCs \57\.
Non-Electronic Input/Output fee
\58\
CD/DVD (CD or DVD)........... $50.00.
Paper (file or report)....... $50.00.
Fees and Credits Established by
Nacha \59\
Nacha Same Day Entry fee (per $0.052.
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 $22.00.
(monthly fee per RTN).
Nacha Admin Network fee (per $0.000185.
entry).
FedGlobal[supreg] ACH Payments: \60\
Fixed Monthly Fee (per RTN): \61\
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): \62\
Canada service............... $0.50.
Mexico service............... $0.55.
Panama service............... $0.60.
Europe service............... $1.13.
Per-item Origination Fee for
Monthly Volume between 161 and
500 items (surcharge): \62\
Canada service............... $0.75.
Mexico service............... $0.80.
Panama service............... $0.85.
Europe service............... $1.38.
Per-item Origination Fee for
Monthly Volume less than 161
items (surcharge): \62\
Canada service............... $1.00.
Mexico service............... $1.05.
Panama service............... $1.10.
Europe service............... $1.63.
Other FedGlobal ACH Payments
Fees:
Canada service:
Return received from $0.99 (surcharge).
Canada \63\.
Trace of item at $5.50.
receiving gateway.
Trace of item not at $7.00.
receiving gateway.
Mexico service:
Return received from $0.91 (surcharge).
Mexico \63\.
Item trace............... $13.50.
Foreign currency to $0.67 (surcharge).
foreign currency (F3X)
item originated to
Mexico \62\
Panama service:
Return received from $1.00 (surcharge).
Panama \63\.
Item trace............... $7.00.
NOC...................... $0.72.
Europe service:
F3X item originated to $1.25 (surcharge).
Europe \62\.
Return received from $1.35 (surcharge).
Europe \63\.
Item trace............... $7.00.
Exception Resolution Service:
Fixed Fee per RTN \64\ (monthly):
Self-Managed Cases........... $10.00.

[[Page 69050]]

Agent-Managed Cases.......... $10.00.
Offline Service Participant.. $60.00.
Variable Case Open Monthly Fees
per Case (applies to self-
managed and agent-managed cases
only at the parent RTN): \65\
1-50 cases................... $1.25.
51-100 cases................. $1.00.
101-500 cases................ $0.75.
501-1,000 cases.............. $0.50.
1,001-5,000 cases............ $0.25.
5,001-10,000 cases........... $0.20.
10,001-99,999,999 cases...... $0.10.
Offline Service Participant--Case
Fees: \66\
Case Open Fee................ $5.00.
Case Response Fee............ $5.00.
------------------------------------------------------------------------

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

\40\ Any ODFI incurring less than $50 for the following fees
will be charged a variable amount to reach the minimum: Forward
value and non-value item origination fees, and FedGlobal ACH
origination surcharges.
\41\ Any RDFI not originating forward value and non-value items
and incurring less than $40 in receipt fees will be charged a
variable amount to reach the minimum. Any RDFI that originates
forward value and nonvalue items incurring less than $50 in forward
value and nonvalue item origination fees will only be charged a
variable amount to reach the minimum monthly origination fee.
\42\ 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.
\43\ The fee includes the item and addenda fees in addition to
the conversion fee.
\44\ 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.
\45\ Origination volumes at these levels qualify for a waterfall
discount which includes all FedACH origination items.
\46\ 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.
\47\ RDFIs receiving through FedACH less than 90 percent of
their FedACH-originated items.
\48\ This per-item discount is a reduction to the standard
receipt fees listed in this fee schedule.
\49\ Receipt volumes at these levels qualify for a waterfall
discount which includes all FedACH receipt items.
\50\ 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.
\51\ RDFIs receiving through FedACH at least 90 percent of all
of their ACH items originated through any operator.
\52\ 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 $35 monthly package fee.
\53\ Premier reports generated on demand are subject to the
package/tiered fees plus a surcharge.
\54\ 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.
\55\ 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.
\56\ 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.
\57\ Fee will be assessed only when automated NOCs are
generated.
\58\ Limited services are offered in contingency situations.
\59\ 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.
\60\ The international fees and surcharges vary from country to
country as these are negotiated with each international gateway
operator.
\61\ A single monthly fee based on total FedGlobal ACH Payments
origination volume.
\62\ This per-item surcharge is in addition to the standard
domestic origination fees listed in this fee schedule.
\63\ This per-item surcharge is in addition to the standard
domestic receipt fees listed in this fee schedule.
\64\ Any financial institution that opens at least 1,000
Exception Resolution Service cases in a given month will receive a
50% discount on its Exception Resolution Service fixed fees for that
month.
\65\ The per case fees are rolled up to the parent RTN, such
that a customer that opens a total of 100 cases per month under two
separate RTNs would pay a total of $112.50 ($1.25 for the first 50
cases and $1.00 for the next 50 cases) in addition to the fixed
fees.
\66\ 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.

Fedwire Funds and National Settlement Services 2022 Fee Schedule
[Effective January 3, 2022. Bold indicates changes from 2021 prices.]
------------------------------------------------------------------------
Fee
------------------------------------------------------------------------
Fedwire Funds Service
------------------------------------------------------------------------
Monthly Participation Fee............................ $100.00
Basic volume-based pre-incentive transfer fee
(originations and receipts)--per transfer for:
Tier 1: The first 14,000 transfers per month..... 0.880
Tier 2: Additional transfers up to 90,000 per 0.255
month...........................................
Tier 3: Every transfer over 90,000 per month..... 0.170
Volume-based transfer fee with the incentive discount
(originations and receipts)--per eligible transfer
for \67\
Tier 1: The first 14,000 transfers per month..... 0.176
Tier 2: Additional transfers up to 90,000 per 0.051
month...........................................
Tier 3: Every transfer over 90,000 per month..... 0.034
Surcharge for Offline Transfers (Originations and 70.00
Receipt)............................................
Surcharge for End-of-Day Transfer Originations \68\.. 0.26
Monthly FedPayments Manager Import/Export fee \69\... 50.00

[[Page 69051]]

Surcharge for high-value payments:
>$10 million..................................... 0.14
>$100 million.................................... 0.36
Surcharge for Payment Notification:
Origination Surcharge \70\....................... 0.01
Receipt Volume \70\ \71\......................... N/A
Delivery of Reports--Hard Copy Reports to On-Line 50.00
Customers...........................................
Special Settlement Arrangements (charge per 150.00
settlement day) \72\................................
------------------------------------------------------------------------
National Settlement Service
------------------------------------------------------------------------
Basic:
Settlement Entry Fee............................. 1.50
Settlement File Fee.............................. 30.00
Surcharge for Offline File Origination \73\.......... 45.00
Minimum Monthly Fee \74\............................. 60.00
------------------------------------------------------------------------

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

\67\ 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: $0.704 for transfers up to 14,000; $0.204
for transfers 14,001 to 90,000; and $0.136 for transfers over
90,000.
\68\ This surcharge applies to originators of transfers that are
processed by the Reserve Banks after 5:00 p.m. eastern time.
\69\ This fee is charged to any Fedwire Funds participant that
originates a transfer message via the FedPayments Manager (FPM)
Funds tool and has the import/export processing option setting
active at any point during the month.
\70\ Payment Notification and End-of-Day Origination surcharges
apply to each Fedwire funds transfer message.
\71\ Provided on billing statement for informational purposes
only.
\72\ 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.
\73\ If your organization is a settlement agent, it 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 <a href="/cdn-cgi/l/email-protection#5c3f2f2f2f722f283d3a3a1c3225723a2e3e72332e3b"><span class="__cf_email__" data-cfemail="c1a2b2b2b2efb2b5a0a7a781afb8efa7b3a3efaeb3a6">[email&#160;protected]</span></a>.
\74\ Any settlement arrangement that accrues less than $60
during a calendar month will be assessed a variable amount to reach
the minimum monthly fee.
---------------------------------------------------------------------------

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

\75\ These fees are set by the Federal Reserve Banks.
\76\ This surcharge is set by the Federal Reserve Banks. It is
in addition to any basic transfer or reversal fee.
\77\ The Federal Reserve Banks offer an automated claim
adjustment process only for Agency mortgage-backed securities.
\78\ This fee is set by and remitted to the Government National
Mortgage Association (GNMA).
\79\ The Federal Reserve Banks charge participants a Joint
Custody Origination Surcharge for both Agency and Treasury
securities.

Fedwire Securities Service 2022 Fee Schedule (Non-Treasury Securities)
[Effective January 3, 2022. Bold indicates changes from 2021 prices.]
------------------------------------------------------------------------
Fee
------------------------------------------------------------------------
Basic Transfer Fee: \75\
Transfer or reversal originated or received...... $0.77
Surcharge: \76\
Offline origination & receipt surcharge.......... 80.00
Monthly Maintenance Fees: \75\
Account maintenance (per account)................ 57.50
Issue maintenance (per issue/per account)........ 0.77
Claims Adjustment Fee \75\ \77\...................... 1.00
GNMA Serial Note Stripping or Reconstitution Fee \78\ 9.00
Joint Custody Origination Surcharge \75\ \79\........ 46.00
Delivery of Reports--Hard Copy Reports to On-Line 50.00
Customers \75\......................................
------------------------------------------------------------------------

[[Page 69052]]

FedLine 2022 Fee Schedule
[Effective January 3, 2022. Bold indicates changes from 2021 prices.]
------------------------------------------------------------------------
Fee
------------------------------------------------------------------------
FedComplete Packages (monthly) \80\ \81\
------------------------------------------------------------------------
FedComplete 100A Plus \82\ includes.. $825.00.
FedLine Advantage Plus package...
FedLine Subscriber--Pack of 5....
7,500 FedForward transactions....
46 FedForward Cash Letter items..
70 FedReturn transactions........
14,000 FedReceipt transactions...
Check monthly participation fee..
35 Fedwire Funds origination
transfers.
35 Fedwire Funds receipt
transfers.
Fedwire monthly participation fee
1,000 FedACH origination items...
FedACH monthly minimum fee--
Forward Origination.
7,500 FedACH receipt items.......
FedACH monthly minimum fee--
Receipt.
10 FedACH web-originated return/
NOC.
500 FedACH addenda record
originated.
1,000 FedACH addenda record
received.
100 FedACH SameDay Service--
Forward Item Originated.
FedACH Participation Fee.........
FedACH settlement fee............
FedACH SameDay Service
origination participation fee.
FedComplete 100A Premier includes.... $900.00.
FedLine Advantage Premier package
Volumes included in the
FedComplete 100A Plus package.
FedComplete 100C Plus includes....... $1,375.00.
FedLine Command Plus package.....
Volumes included in the
FedComplete 100A Plus package.
FedComplete 200A Plus includes....... $1,350.00.
FedLine Advantage Plus package...
FedLine subscriber 5-pack........
25,000 FedForward transactions...
46 FedForward Cash Letter items..
225 FedReturn transactions.......
25,000 FedReceipt transactions...
Check monthly participation fee..
100 Fedwire Funds origination
transfers.
100 Fedwire Funds receipt
transfers.
Fedwire monthly participation fee
2,000 FedACH origination items...
FedACH monthly minimum fee--
Forward Origination.
25,000 FedACH receipt items......
FedACH monthly minimum fee--
Receipt.
20 FedACH web-originated return/
NOC.
750 FedACH addenda record
originated.
1,500 FedACH addenda record
received.
200 FedACH SameDay Service--
Forward Item Originated.
FedACH Participation Fee.........
FedACH settlement fee............
FedACH SameDay Service
origination participation fee.
FedComplete 200A Premier includes.... $1,425.00.
FedLine Advantage Premier package
Volumes included in the
FedComplete 200A Plus package.
FedComplete 200C Plus includes....... $1,900.00.
FedLine Command Plus package.....
Volumes included in the
FedComplete 200A Plus package.
FedComplete Excess Volume and Receipt
Surcharge: \83\
FedForward \84\.................. $0.03700/item.
FedReturn........................ $0.82000/item.
FedReceipt....................... $0.00005/item.
Fedwire Funds Origination........ $0.88000/item.
Fedwire Funds Receipt............ $0.08800/item.
FedACH Origination............... $0.00350/item.
FedACH Receipt................... $0.00035/item.
FedComplete credit adjustment........ various.
FedComplete debit adjustment......... various.
------------------------------------------------------------------------

[[Page 69053]]

FedLine Solutions (monthly)
------------------------------------------------------------------------
FedMail \85\ includes................ $85.00.
FedMail access channel...........
Check FedFoward, Fed Return and
FedReceipt Services.
Check Adjustments................
FedACH Download Advice and
Settlement Information.
Fedwire Funds Offline Advices....
Daily Statement of Account (Text)
Monthly Statement of Service
Charges (Text).
Electronic Cash Difference
Advices.
FedLine Exchange \85\ includes....... $40.00.
E-Payments Directory (via manual
download).
FedLine Exchange Premier \85\ $125.00.
includes.
FedLine Exchange package.........
E-Payments Directory (via
automated download).
FedLine Web \86\ includes............ $110.00.
FedLine Web access channel.......
Services included in the FedLine
Exchange package.
Check FedForward, FedReturn and
FedReceipt Services.
Check Adjustments................
FedACH Derived Returns and NOCs..
FedACH File, Batch and Item
Detail Information.
FedACH Download Advice...........
FedACH Settlement Information....
FedACH Customer Profile
Information.
FedACH Returns Activity
Statistics.
FedACH Risk RDFI Alert Service...
FedACH Risk Returns Reporting
Service.
FedACH Exception Resolution
Service.
FedCash[supreg] Services.........
FedLine Web Plus \86\ includes....... $160.00.
Services included in the FedLine
Web package.
FedACH Risk Origination
Monitoring Service.
FedACH FedPayments Reporter
Service.
Check Large Dollar Return........
Check FedImage Services..........
Account Management Information
(AMI).
Daily Statement of Account (PDF,
Text).
Daylight Overdraft Reports.......
Monthly Account Services (SCRD)
File.
Monthly Statement of Service
Charges (PDF, Text).
E-Payments Routing Directory (via
automated download).
FedLine Advantage \86\ includes...... $415.00.
FedLine Advantage access channel.
One VPN device...................
Services included in the FedLine
Web package.
FedACH File Transmission To/From
Federal Reserve.
FedACH Request Output File
Delivery.
FedACH View File Transmission and
Processing Status.
Fedwire Originate and Receive
Funds Transfer.
Fedwire Originate and Receive
Securities Transfer.
National Settlement Service
Services.
Check Large Dollar Return........
Check FedImage Services..........
Account Management Information
with Intra-Day Download Search
File.
Daily Statement of Account (PDF,
Text).
Daylight Overdraft Reports.......
Monthly Account Services (SCRD)
File.
Monthly Statement of Service
Charges (PDF, Text).
FedLine Advantage Plus \86\ includes. $460.00.
Services included in the FedLine
Advantage package.
One VPN device...................
FedACH Risk Origination
Monitoring Service.
FedACH FedPayments Reporter
Service.
Fedwire Funds FedPayments Manager
Import/Export (less than or
equal to 250 Fedwire
transactions and one routing
number per month).
FedTransaction Analyzer[supreg]
(less than 250 or equal to
Fedwire transactions and one
routing number per month).
E-Payments Routing Directory (via
automated download).
FedLine Advantage Premier \86\ $570.00.
includes.
FedLine Advantage Plus package...

[[Page 69054]]

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 includes........ $1,035.00.
FedLine Command access channel...
Services included in the FedLine
Advantage Plus package.
One VPN device...................
Additional FedLine Command server
certificates.
Fedwire Statement Services.......
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 in
a given month).
Intra-Day File with Transaction
Details (up to six times daily).
Statement of Account Spreadsheet
File (SASF).
Financial Institution
Reconcilement Data (FIRD) File
(machine readable).
FedLine Direct Plus \87\ includes.... $5,500.00.
FedLine Direct access channel....
Services included in the FedLine
Command Plus package.
One VPN device...................
One 2 Mbps Dedicated WAN
Connection.
Additional FedLine Direct server
certificates.
Treasury Check Information System
(TCIS).
Dual Vendors.....................
FedLine Direct Contingency
Solution.
FedLine Direct Premier \87\ includes. $10,500.00.
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) \88\
------------------------------------------------------------------------
Electronic Access:
FedMail--FedLine Exchange $15.00.
Subscribers--Pack of 5.
FedLine Subscribers--Pack of 5 $100.00.
(access to Web and Advantage).
Additional VPNs \89\............. $100.00.
Additional 2 Mbps WAN connection $3,000.00.
\87\.
WAN Connection Upgrade:
10 Mbps \90\................. $1,700.00.
30 Mbps \90\................. $3,000.00.
50 Mbps \90\................. $4,000.00.
100 Mbps \90\................ $7,000.00.
200 Mbps \90\................ $11,000.00.
FedLine International Setup (one- $5,000.00.
time fee).
FedLine Custom Implementation Fee various.
(one-time fee) \91\.
Network Diversity................ $2,500.00.
FedMail Email (for customers with $60.00.
FedLine Web and above) \92\.
FedMail Fax \93\................. $200.00.
VPN Device Modification (one-time $200.00.
fee).
VPN Device Missed Activation $175.00.
Appointment (one-time fee).
VPN Device Expedited Hardware $100.00.
Surcharge (one-time fee).
VPN Device Replacement or Move $300.00.
(one-time fee).
E-Payments Automated Download (1- $75.00.
5 Add'l Codes) \94\.
E-Payments Automated Download (6- $150.00.
20 Add'l Codes) \94\.
E-Payments Automated Download (21- $300.00.
50 Add'l Codes) \94\.
E-Payments Automated Download (51- $500.00.
100 Add'l Codes) \94\.
E-Payments Automated Download $1,000.00.
(101-250 Add'l Codes) \94\.
E-Payments Automated Download $2,000.00.
(>250 Add'l Codes) \94\.
Accounting Information Services
(monthly):
Cash Management System (CMS)
Plus--Own report--up to 12 files
with: \95\
no OSRTN, respondent/sub- $60.00.
account activity.
less than 10 OSRTNs, $125.00.
respondents and/or sub-
accounts.
10-50 OSRTNs, respondents and/ $250.00.
or sub-accounts.
51-100 OSRTNs, respondents $500.00.
and/or sub-accounts.
101-500 OSRTNs, respondents $750.00.
and/or sub-accounts.
>500 OSRTNs, respondents and/ $1,000.00.
or sub-accounts.
End-of-Day Financial Institution $150.00.
Reconcilement Data (FIRD) File
\96\.
Statement of Account Spreadsheet $150.00.
File (SASF) \97\.
Intra-day Download Search Results $150.00.
in Spreadsheet Format (with AMI)
\98\.
Other:

[[Page 69055]]

Software Certification........... $0.00 to $8,000.00.
Vendor Pass-Through Fee.......... various.
Electronic Access Credit various.
Adjustment.
Electronic Access Debit various.
Adjustment.
------------------------------------------------------------------------

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

\80\ FedComplete packages are all-electronic service options
that bundle payment services with an access solution for one monthly
fee.
\81\ FedComplete customers that use the email service would be
charged the FedMail Email a la carte fee and for all FedMail-FedLine
Exchange Subscriber 5-packs.
\82\ Packages with an ``A'' include the FedLine Advantage
channel, and packages with ``C'' include the FedLine Command
channel.
\83\ Per-item surcharges are in addition to the standard fees
listed in the applicable priced services fee schedules.
\84\ 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.
\85\ FedMail and FedLine Exchange packages do not include user
credentials, which are required to access priced services and
certain informational services. Credentials are sold separately in
packs of five via the FedMail-FedLine Exchange Subscriber 5-pack.
\86\ 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.
\87\ Early termination fees and/or expedited order fees may
apply to all FedLine Direct packages and FedLine Direct a la carte
options.
\88\ These add-on services can be purchased only with a FedLine
Solution.
\89\ Additional VPNs are available for FedLine Advantage,
FedLine Command, and FedLine Direct packages only.
\90\ Fee is in addition to the FedLine Direct package fees or
additional 2Mbps WAN fees.
\91\ The FedLine Custom Implementation Fee is $2,500 or $5,000
based on the complexity of the setup.
\92\ Available only to customers with a priced FedLine package.
\93\ Limited to installed base only.
\94\ Five download codes are included at no cost in all Plus and
Premier packages.
\95\ Cash Management Service options are limited to Plus and
Premier packages.
\96\ The End of Day Financial Institution Reconcilement Data
(FIRD) File option is available for FedLine Web Plus, FedLine
Advantage Plus, and Premier packages. It is available for no extra
fee in FedLine Command Plus and Direct packages.
\97\ The Statement of Account Spreadsheet File (SASF) option is
available for FedLine Web Plus, FedLine Advantage Plus, and Premier
packages. It is available for no extra fee in FedLine Command Plus
and Direct packages.
\98\ The Intra-day Download Search Results in Spreadsheet Format
option is available for the FedLine Web Plus package. It is
available for no extra fee in FedLine Advantage and higher packages.

By order of the Board of Governors of the Federal Reserve
System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-26395 Filed 12-3-21; 8:45 am]
BILLING CODE 6210-01-P

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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.