[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