[Federal Register Volume 86, Number 231 (Monday, December 6, 2021)]
[Notices]
[Pages 69035-69055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 www.FRBservices.org.

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

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(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]
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                                                                                                   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

     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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     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.
     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.
     The Reserve Banks will increase the tiered pricing 
structure for the monthly Check 21 participation fee with fees ranging 
from $55 to $225.
     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

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

Fedwire Funds

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

National Settlement Service

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

Fedwire Securities

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

FedLine[supreg] Solutions

     The Reserve Banks will increase the price for 
FedMail[supreg] Fax Service from $150 to $200.
     The Reserve Banks will increase the price for FedMail 
Email Service (for customers with FedLine Web and above) from $40 to 
$60.
     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 
https://www.fdic.gov/news/board/2014/2014-04-08_notice_dis_c_fr.pdf.
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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 https://www.federalreserve.gov/aboutthefed/summary-of-revisions.htm.
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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 http://www.federalreserve.gov/releases/h15/data.htm.
    \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 [email protected].
    \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