[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Rules and Regulations]
[Pages 13980-13982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03079]


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POSTAL SERVICE

39 CFR Part 501


Authorization To Manufacture and Distribute Postage Evidencing 
Systems

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is amending its Postage Evidencing Systems 
(PES) regulations to ensure compliance for Automated Clearinghouse or 
ACH payment transactions and to clarify obligations related to all 
payments. These changes require the applicable resetting company (RC) 
and PC Postage provider to comply with the latest NACHA rules published 
by the North American Clearing House Association for ACH transactions. 
These changes also require the applicable RC and PC Postage provider to 
obtain and store an agreement with each customer utilizing ACH debit as 
a payment method. Failure to comply may result in revocation of access 
to applicable Postal Service ACH programs.

DATES: Effective March 27, 2024.

FOR FURTHER INFORMATION CONTACT: Douglas Graham, Banking Manager, 
United States Postal Service, 475 L'Enfant Plaza SW, RM 8134, 
Washington, DC 20260. Phone: (202) 268-2188.

SUPPLEMENTARY INFORMATION: The Postal Service issued proposed revisions 
to 39 CFR part 501, set forth in the Federal Register on November 20, 
2023 (Vol. 88, No. 222). It proposed amending the Postage Evidencing 
Systems regulations to ensure compliance for Automated Clearinghouse or 
ACH payment transactions and to clarify obligations related to all 
payments. Two sets of comments were received in response to the Federal 
Register Notice from industry participants.

NACHA Rules Compliance

Industry Comments

    The proposal that PES providers must comply with NACHA rules 
received comments highlighting the need for clarification on which 
version of the NACHA rules will apply, as the rules are regularly 
updated. The commentors suggest including a provision for a grace 
period for PES providers to adopt and comply with future updates, which 
could either be fixed, or flexible and proportionate to the scope and 
complexity of future changes.

Postal Service Response

    The rule will be re-worded to specify ``must comply with the most 
recently published edition of NACHA Operating Rules & Guidelines, 
published by NACHA annually.'' It is not the intention through this 
rulemaking to alter or supersede NACHA rules, but to follow existing 
NACHA rules and compliance that industry should reasonably understand 
and expect. Under this approach, the Postal Service cannot provide 
NACHA compliance exemptions as any entity involved in ACH related 
activity must already comply with NACHA rules, therefore the Postal 
Service will also not specify ``sections to comply with'' nor ``grace 
periods''. Changes to the NACHA Operating Rules and Guidelines 
typically provide for future dated requirements and therefore an 
implementation period is normally provided within the NACHA rules.

NACHA Attestation of Compliance

Industry Comments

    Commentors expressed opposition to the proposal's requirement for 
an annual written attestation of compliance for PES providers. One 
commentor opined that the requirement is unnecessary, since PES 
providers are already required to provide the Postal Service with 
System and Organizational Controls Reports (SOC 1 and SOC 2) that 
incorporate NACHA compliance. The proposed rule's requirement of a 
written plan to address any noncompliance of NACHA rules is duplicative 
of the existing requirement for a remediation plan as a part of the SOC 
process. If the requirement is retained, one commentor recommends that 
the Postal Service should provide the text of the attestation or 
clarify what the attestation must contain.

Postal Service Response

    The requirement to provide an annual written attestation of 
compliance will be removed.

ACH Debit Agreement

Industry Comments

    Commentors expressed concerns about the proposed rule's new record-
keeping requirements for ACH agreements for PES providers. One 
commenter suggested revising the requirements to minimize 
administrative burden and focus only on essential information. This 
commenter proposes accommodating customer agreements predating the rule 
by either grandfathering them for a specified period or providing an 
extended grace period, such as 12 to 18 months, for historic account 
information. The comment also argues against duplicative elements, such 
as the need for bank address information for every customer agreement. 
Another commenter also supports the idea of a grace period for 
providers to obtain and document the required contracts and suggest 
making a bank address an optional requirement, since it can be derived 
from the Routing/ABA number.

Postal Service Response

    1. Regarding supplying the bank address information, it is agreed, 
and that data element requirement will be removed.
    2. Regarding requiring signature evidence of termination, it is 
agreed, and that data element requirement will be removed.
    3. To comply with NACHA rules, the ability to provide a copy of the 
ACH Debit upon request must already be in place, therefore 
``grandfathering'' an exemption to this requirement is not an option. 
All customers of the providers must have an ACH Debit Agreement on file 
with the provider. All terminated ACH Debit Agreements must have a 
termination date noted on the agreement and the agreement must be kept 
on file for at least 2 years after the termination date.
    4. It is agreed that an ACH Debit Agreement ``form (hard copy or 
electronic)'' revision period will be provided to update agreement 
``forms'' to include the minimum data elements

[[Page 13981]]

listed until August 31, 2024. After the revision period all newly 
accepted ACH Debit Agreements must include the minimum data elements 
listed. During the revision period existing ACH Debit Agreement 
``forms'' may continue to be used per item (3) above.

Reimbursement of Returned Payments

Industry Comments

    One commenter expressed the view that the proposed rule's specific 
timelines for reimbursement of the Postal Service by PES providers for 
ACH returned payments do not provide sufficient time for PES providers 
to work with customers on returned payments. The commenter recommends 
modifying the proposed sections to extend the reimbursement timeframe.

Postal Service Response

    This is a comment based on Sec. Sec.  501.15(g)(1) and 
501.16(d)(1). While the text of these rules is included in the 
rulemaking, changes are not being made to these existing provisions of 
the rule that have been in effect prior to the proposed rulemaking. No 
changes to these existing provisions were intended to be included in 
this proposal, and none will be made in the final rule.

Additional Change

    We also added one further conforming change to Sec.  501.16 to aid 
in the implementation of these changes.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure, Postal Service.

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
EVIDENCING SYSTEMS

0
1. The authority citation for part 501 continues to read as follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 
2601, 2605; Inspector General Act of 1978, as amended (Pub. L. 95-
452, as amended); 5 U.S.C. App. 3.


0
2. Amend Sec.  501.15 by revising paragraph (g) to read as follows:


Sec.  501.15  Computerized Meter Resetting System.

* * * * *
    (g) The RC must reimburse the Postal Service for returned payments 
promptly, comply with NACHA rules, and maintain customer ACH debit 
agreements.
    (1) Financial responsibility for returned payments. The RC is 
required to reimburse the Postal Service upon request for any returned 
payments. The RC must, upon first becoming aware of a returned payment, 
immediately lock the customer's CMRS account to prevent a meter reset 
until the RC receives confirmation of payment for the returned payment. 
If a fee, penalty or fine is assessed against the Postal Service for 
returned payments from an RC's customer, the Postal Service may request 
reimbursement for such fee, penalty or fine from the RC. The RC is 
required to remit the amount of the returned payment to the Postal 
Service plus the reimbursement request, to the extent applicable, 
within ten (10) banking days. Invoices will be created monthly for 
returns and/or applicable penalties or fines incurred for the previous 
month. The ten (10) banking days will start once the invoice is mailed. 
The RC has discretion to decide whether to charge its customer for any 
such reimbursement costs (of fees, penalties, or fines) the RC pays to 
the Postal Service in connection with the customer's returned payment.
    (2) Responsibility to comply with NACHA rules. The RC is required 
to comply with the most recent edition of the NACHA rules, published 
annually by the North American Clearing House Association. Failure to 
comply may result in revocation of access to applicable Postal Service 
ACH programs.
    (3) Responsibility to maintain customer ACH agreements. The RC must 
obtain and store an agreement with each and every customer utilizing 
ACH debit as a payment method. The customer agreement must authorize 
the RC to debit the designated bank account identified to pay for 
postage through the Postal Service account of its choice. The agreement 
must have at least the following elements: Company Name (if 
applicable), Name and Title and Address of the person entering into the 
agreement, Contact Information (Phone Number, Fax Number and eMail 
Address as applicable), Date and Signature (or appropriate electronic 
signature evidence) of Agreement, Customer's Bank Name, Bank Routing 
Number, Account Number and Account Type (Checking or Savings, Business 
or Personal) being agreed to transact upon, an Attestation that the 
person submitting the form is authorized to act on behalf of the 
account, and Termination Date of the Agreement (if applicable). A 
revision period until August 31, 2024, will be provided to update 
agreement forms to include the minimum data elements listed. The 
agreement must be stored for at least two years after termination of 
the agreement, must be easily reproducible, and must be provided 
electronically to the Postal Service within three business days of 
electronic written request by the Postal Service in a format that can 
be easily and readily used for all NACHA and ACH related purposes 
including, without limitation, audit and defense of claims. The Postal 
Service will provide specific written guidance separately if requested. 
Failure to comply may result in revocation of access to applicable 
Postal Service ACH programs.
* * * * *

0
3. Amend Sec.  501.16 by revising paragraphs (d) and (i)(5)(ii)(C) to 
read as follows:


Sec.  501.16  PC postage payment methodology.

* * * * *
    (d) The provider must reimburse the Postal Service for returned 
payments promptly, comply with NACHA rules, and maintain customer ACH 
agreements.
    (1) Financial responsibility for returned payments. The provider 
must reimburse the Postal Service upon request for any returned 
payments. The provider must, upon first becoming aware of a returned 
payment, immediately lock the customer account to prevent resetting the 
account until the provider receives confirmation of payment for the 
returned payment. If a fee, penalty or fine is assessed against the 
Postal Service for returned payments from a provider's customer, the 
Postal Service may request reimbursement for such fee, penalty or fine 
from the provider. The provider is required to remit the amount of the 
returned payment plus the amount of the reimbursement request, to the 
extent applicable, to the Postal Service within ten (10) banking days. 
Invoices will be created monthly for returns and/or applicable 
penalties or fines incurred for the previous month. The ten (10) 
banking days will start once the invoice is mailed. The provider has 
discretion to decide whether to charge its customer for any such 
reimbursement costs (of fees, penalties or fines) the provider pays to 
the Postal Service in connection with the customer's returned payment.
    (2) Responsibility to comply with NACHA rules. The provider is 
required to comply with the most recent edition of the NACHA rules, 
published annually by the North American Clearing House Association. 
Failure to comply may result in revocation of access to applicable 
Postal Service ACH programs.
    (3) Responsibility to maintain customer ACH agreements. The 
provider must obtain and store an agreement with each and every 
customer utilizing ACH debit as a payment method. The customer 
agreement must authorize the provider

[[Page 13982]]

to debit the designated bank account identified to pay for postage 
through the Postal Service account of its choice. The agreement must 
have at least the following elements: Company Name (if applicable), 
Name and Title and Address of the person entering into the agreement, 
Contact Information (Phone Number, Fax Number and eMail Address as 
applicable), Date and Signature (or appropriate electronic signature 
evidence) of Agreement, Customer's Bank Name, Bank Routing Number, 
Account Number and Account Type (Checking or Savings, Business or 
Personal) being agreed to transact upon, an Attestation that the person 
submitting the form is authorized to act on behalf of the account, and 
Termination Date of the Agreement (if applicable). A revision period 
until August 31, 2024, will be provided to update agreement forms to 
include the minimum data elements listed. The agreement must be stored 
for at least two years after termination of the agreement, must be 
easily reproducible, and must be provided electronically to the Postal 
Service within three business days of electronic written request by the 
Postal Service in a format that can be easily and readily used for all 
NACHA and ACH related purposes including, without limitation, audit and 
defense of claims. The Postal Service will provide specific written 
guidance separately if requested. Failure to comply may result in 
revocation of access to applicable Postal Service ACH programs.
    (4) Credit cards. Unless otherwise established in a written 
agreement between the Postal Service and the provider, the provider is 
fully responsible for its own credit card compliance.
* * * * *
    (i) * * *
    (5) * * *
    (ii) * * *
    (C) Authorizes the PC Postage provider to disclose the customer's 
personal information to the Postal Service, and such other information 
retained by the PC Postage provider that may enable the Postal Service 
to collect debts owed to it, and has the proper authority to disclose 
such information;
* * * * *

Sarah Sullivan,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2024-03079 Filed 2-23-24; 8:45 am]
BILLING CODE 7710-12-P