Newsroom
CUs learn of new Fed payment service
 |
Miller (center) and Paysour (right) speak with NAFCU's Alyssa Kolat prior to yesterday's webcast on Fed payment services.
|
Feb. 17, 2011 – The more than 380 credit unions that participated in yesterday's NAFCU webcast learned of a Federal Reserve Bank program that bundles payment services for financial institutions that have low transaction volumes.
Korie Miller, of the Federal Reserve Bank of Kansas City, discussed the FedComplete packages in her overview of all payment services available through the Federal Reserve. The program will start April 1 and will combine FedACH, Fedwire and Check 21-enabled services for one monthly fee.
Through this consolidated program, credit unions and other financial institutions will not have to decide which "bits and pieces" of the Federal Reserve's offerings to implement at their institutions, she said.
Amy Paysour, of the Federal Reserve Bank of Richmond, detailed the specific Federal Reserve services. Through Fedwire, for instance, credit unions can send and receive wire transactions locally and nationwide. Credit unions can also order both cash and coin currency through the Fed's cash services, Paysour noted.
Both speakers touched on the Federal Reserve's discount window, which allows eligible institutions to borrow money to meet temporary liquidity shortages. Miller said financial institutions are no longer required to show that the discount window is their last resort. To use it, institutions would need to hold collateral at a Federal Reserve Bank, she said.
The Federal Reserve Banks have experience meeting credit unions' needs regarding these and other payment services, said Miller. She said about 6,500 credit unions already use the banks' services. She also said the Fed's system is unique in that credit unions can settle transactions either directly with the banks or through correspondent institutions, such as corporate credit unions.
All of the Fed's services are available for credit unions.
This webcast will be archived for six months. For more information, visit www.nafcu.org/ondemandwebcasts.