FedACH^® Origination and Receipt Services Setup

Thank you for choosing FedACH Origination and Receipt Services. We are ready to work with you to make this a smooth and easy transition. Following are the steps to take to streamline your implementation process, including contacts to help you with questions at any step along the way. Depending on the access solution and services to which you already subscribe, you may be able to omit several of these steps. Read the steps carefully to determine which apply to you. If you need advice or assistance at any step of the process, consult your account executive.

Step 1 – Select Service Options

The following information will help you determine what specific service features are right for your institution.

• Confirm FedACH Origination/Receipt Offerings right for your organization

Step 2 – Assess Your Access Needs

Use the following links to determine which access solution provides the services/features your organization needs and the number and type of Subscribers who will need access to those solutions in your organization.

• Determine if you need FedACH Services via FedLine Web^® or FedLine Advantage^®. To process ACH transactions directly with the Federal Reserve, you will need FedACH Services via FedLine Advantage; processing via a third-party processor generally only requires FedACH Services via FedLine Web
• Review the 2019 FedLine Solutions Services Comparison Matrix (PDF)
• Determine FedACH Subscriber Access Levels needed
• Review your security and contingency procedures to ensure that appropriate safeguards are in place when using any FedLine^® Solution

Step 3 – Review Rules and Regulations

Federal Reserve Financial Services use is governed by applicable Operating Circulars. In addition, the Board of Governors of the Federal Reserve System has responsibility for implementing certain laws pertaining to a wide range of banking and financial activities. The following apply to FedACH Services:

Operating Circulars

• Operating Circular 4: ACH Items – governs clearing and settlement of commercial ACH credit and debit items
• Operating Circular 5: Electronic Access – covers terms for accessing Federal Reserve Financial Services

Regulations

• Regulation E – primarily addresses consumer rights pertaining to electronic funds transfers
• Regulation CC – includes regulations concerning availability of funds

NACHA's Operating Rules (Off-site)

Provides information regarding annual ACH rule changes, their operational impact and whether any software changes are required; includes a system of national fines; available through NACHA or your Payments Association (Off-site)

Uniform Commercial Code-Article 4 (Off-site)

Green Book (Off-site)

A comprehensive guide for institutions that receive ACH payments from the federal government and send payments (i.e., collections) to the federal government.

Step 4 – Review Setup and Processing Documentation

Implementation and user guides and other resources are available for your review to help you through the start-up process, as well as to help you use the service to its fullest potential. Helpful documentation is available under FedACH Operations Resources. The guide to Conducting ACH Business with the Federal Reserve Banks details aspects unique to using FedACH for origination and receipt.

Step 5 – Review Hardware/Software Requirements

Evaluate all internal software/hardware systems and compare to Federal Reserve Bank requirements to determine if changes are needed for a successful production cutover.

• FedLine Advantage hardware/software requirements
• FedLine Web hardware/software requirements

Step 6 – Complete Forms/Agreements

Now that you've determined your access solution, service features and Subscriber needs, you can proceed to document all your decisions in the required forms.

• Ensure that your organization has submitted Board Resolution and Official Authorization List (OAL) using the standard form required by the Federal Reserve Banks
• Submit the FedACH Participation Agreement to the location listed on the form

Questions? Contact FedACH and Check Services Customer Support.

Current FedLine customers:

• An End User Authorization Contact (EUAC) with authority to manage access for FedACH Services should submit a Subscriber request via the EUAC Center within FedLine Home to give new Subscribers access or to modify current Subscribers' access to include FedACH Origination and Receipt Services. EUACs must define access levels for each FedACH Subscriber in your organization.
• Otherwise, your organization must first submit a modified EUAC Form (PDF) to authorize your EUAC to manage access for FedACH Services.

Questions? Contact the Customer Contact Center

New FedLine customers:

• Complete the FedLine Web Service Setup or FedLine Advantage Service Setup

Questions? Contact the Customer Contact Center

Step 7 – Schedule Testing and Production Date

Once your paperwork is received, a representative from the Federal Reserve Banks will call you to establish a testing schedule and production date. Testing requirements will vary based on the services you have selected.

By the production cutover date, you should be prepared to use the FedACH Origination and Receipt Services.

Questions? Contact your account executive.

Step 8 – Congratulations! Begin processing Federal Reserve Financial Services

You can begin originating and receiving ACH transactions.

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