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New Standard Deposit Packaging Requirements for FedCash Services
As part of the transformation of FedCash services that will take place over the next several years, the Federal Reserve Banks will be transitioning to a new requirement for packaging deposits that includes a Fed-standard barcode on each incoming bag or container. In 2010, customers served by the Federal Reserve Bank of New York were the first to experience this transition. In addition, these customers transitioned from the ten-bundle plastic trays they previously used for depositing and receiving currency with the New York Fed, and now use plastic currency bags or bulk containers.
By adopting pre-printed bar-coded bags, the new standard packaging requirements will permit the Federal Reserve Banks to incorporate new security features that will help pave the way for other standardization initiatives planned for the delivery of FedCash Services in the future.
Information for Depository Institutions
In 2009, we announced some important changes taking place to our depositing practices over the next few years. This initiative was launched last year, as customers served by the Federal Reserve Bank of New York began their transition to the new Fed-standard barcoded bags for currency deposits. Initially these new deposit requirements were scheduled to be rolled out to all Depository Institutions this year. However, the timeline for transitioning to barcoded bags across the System has changed due to a delay in the technology platform development schedule. Unless you are a customer of the New York Fed, you may continue to use the same processes for depositing as you do today.
Your institution may be contacted by a bag manufacturer about transitioning to the new barcoded bags. You may feel free to begin your transition early, but please note that no action is required at this time. Your institution will receive additional communications regarding this transition well in advance of your time to convert, beginning with an update on implementation plans in early 2011.
List of registered Manufacturers of Currency Bags:
The following list is provided for informational purposes only to assist you in your search for a manufacturer of currency bags that have pre-printed bar-codes. The list is not intended to be comprehensive, but rather to identify vendors that have completed the registration process with the Federal Reserve Banks and have been assigned a unique range of barcodes. The Federal Reserve Banks DO NOT endorse any specific bag vendor. The Federal Reserve Banks make no warranties or representations with respect to any of the products offered by these vendors other than that the vendor has successfully completed the registration process and were assigned a unique range of barcodes for their exclusive use in manufacturing currency bags for deposit at the Federal Reserve Banks.
Frequently Asked Questions:
In 2009, the Federal Reserve Bank of New York announced the transition to the new standard procedures requiring that all currency deposits be packaged in uniquely bar-coded bags. The results of this roll-out provided valuable insight into our practices. Below are answers to some of the frequently asked questions during the New York district roll-out.
Q: Can we continue to use the same deposit tickets?
A: Yes you can continue to use deposit tickets with the new standard bar-coded bags.
Q: How can we secure the deposit ticket to the new standard bar-coded bags?
A: The deposit ticket should be secured to the outside the currency deposit bag and not inserted inside.
Q: Where can we obtain a list of bag manufacturers that have registered with the Federal Reserve Bank to produce the new standard bar-coded bags?
A: A list will be published and updated at: Vendor Info
Q: What if my bag manufacturer is not on the list?
A: We have prepared a letter Bag Vendor Letter that you can send your current bag manufacturer to inform them of the steps they need to take to provide you with the required packaging.
Q: Is there a bar-code requirement for coin deposit bags as well?
A: No, there are no bar-code requirements for coin deposit bags.
Q: Can the bar-codes be printed on small bags?
A: Yes. The unique barcodes can be applied to any size bags.
Q: Are there any cost implications of making this transition?
A: DIs who participated in the pilot program for the use of the bags have experienced mixed results with respect to cost implications. Some DIs found they were able to obtain bags that met the new specifications, including the bar codes, at no increase in cost. However, the DI may take measures to offset potential cost increases. The Federal Reserve suggests that DIs maximize the use of bulk transports, if possible. The DI may also reach out to different bag vendors for a more suitable option, as long as the bag requirements are met.
Q: What if our institution favors depositing in trays for security and transportability reasons?
A: Bags are a very secure, easy method to transport currency deposits. In addition they are 100% recyclable.
Information for Manufacturers of Currency Bags
Before you begin production of the standard bar-coded currency bags, you need to register with the Federal Reserve Bank of Dallas to confirm your participation in this effort. Upon completion of the necessary paperwork, you will be assigned a unique range of barcodes for your company’s exclusive use in manufacturing currency bags for deposit at Federal Reserve Banks. You also have the option of providing samples of the bags you manufacture to the Federal Reserve Bank of Dallas for courtesy testing against the Federal Reserve's requirements prior to distribution to customers.
Below is a specification sheet for producing the standard bar-coded currency bags.
If at this time your customers do not contact you about this transition, no further action is necessary. However, you are welcome to get a head start and begin the registration process anyway as long as you review the currency bag requirements above and contact the Federal Reserve Bank of Dallas at dal.cash.admin@dal.frb.org to request an application. Also, if you have already registered with the Federal Reserve Banks, there is no need to re-apply if another customer contacts you about this transition. The barcode range provided is not unique to any particular financial institution and is sufficiently large to accommodate your customer base.
Please note, unless your customer is served by the Federal Reserve Bank of New York, they may continue to use the same processes for depositing as they do today. Due to a delay in the technology platform development schedule the timeline for transitioning to barcoded bags across the system has been changed. We have shared information about this change with Depository Institutions (DI) across the country. Therefore, there is no need for you to contact them about this transition at this time. We will provide an update on implementation plans in early 2011.
Some of the benefits to you
Upon successful completion of the process, your company’s name will be listed on the registered vendor list below. This list will be helpful to DIs who are looking for a vendor to produce standard currency bags for them.
In addition, over time we plan to roll out the new deposit requirements to all Federal Reserve System customers, creating demand for barcoded bags.