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A review of Check Adjustment Services updates

Check | June 1, 2022 |

As communicated throughout 2021, the Federal Reserve has streamlined the processing of Check Adjustments with investigation types (ITYPs) functionality as of March 20, 2022. In response to the changes, Check Adjustments Subscribers and their technical support staff should have updated the technical code to send or receive files.

Here’s a review of the recent upgrades:

  1. New case ITYP — Wrong Payee Credited (WPC): A new case type, Wrong Payee Credited (WPC), has been added to provide the bank of first deposit (BOFD) an option to submit an adjustment case to the Federal Reserve Banks and receive a debit entry. Financial institutions submitting WPC cases with incorrect or incomplete information are subject to a quality fee (see the 2022 Electronic Check Collection Fee Schedule page on FRBservices.org®).
  2. Streamlined functionality when submitting and receiving Remote Deposit Capture (RDC) Item, Unauthorized Electronically Created Item (UECI) and Unauthorized Remotely Created Check (URCC) ITYPs: Subscribers can directly submit and receive these case types using the applicable ITYP.
    • Technical code changes are required for the following actions:
      • Entry via TXT or JSON file
      • Download/export of TXT, JSON, DOCX and CSV files
    • Technical code changes are NOT required for the following actions:
      • Entry via FedLine® Solutions
      • Receipt via FedLine Solutions
      • Receipt via FedMail®
    • The Check Adjustments Automated Status Report reflects the unique “Expected New Action” dates for each ITYP as follows:
      • RDC: 20 business days
      • UECI: 20 business days
      • URCC: 5 business days
      • WIC: 80 business days
  3. BOFD information provided on Paid Item (PAID) and Source of Receipt (SOR) cases: The BOFD information provides proactively on PAID and SOR cases.
    • BOFD information for “the other item,” required to submit an RDC automatically on PAID cases when the From Cash Letter ABA (FCL) and Other Item From Cash Letter ABA (FCL1) are different.
    • BOFD information is provided automatically on SOR cases. Check Adjustments Subscribers should submit a SOR when BOFD information is needed.
    • Information provided includes BOFD ABA, sequence number and cash letter date.
  4. Contact information for the case sender is provided to Subscribers: The comments section of PAID, Non-Cash Item (NCH), Non-Confirming Item (NCI) and Late Return Disclaimer (LR) case types include the following information from the institution that submits the case:
    • Sender ABA (SNDR)
    • Contact Name (CNTC)
    • Contact Phone Number (TELE)
    • Sender Reference Number (SREF)
    Contact information is only provided for FedForward® and FedReturn® Services. Institutions that want inquiries to be sent to one central phone number should include that phone number when submitting the case.
  5. Changes to the Reclamation (RCLM) ITYP: The RCLM ITYP expanded but it did not impact how the RCLM ITYP is beg used.

Questions

If you have questions regarding these changes, please contact FedACH® and Check Services Customer Support.

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