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F ederal R eserve Bank
OF DALLAS
w illia m

H. WALLACE

September 1, 1989
DALLAS. TEXAS 75222

FIRST V IC E P R E S ID E N T
AND C H IE F O PER A TIN G O FFIC E R

Circular 89-52

TO:

The Chief Operations Officer of
all financial institutions in the
Dallas office territory

SUBJECT
Introduction of check truncation services in the Dallas office
terri tory
DETAILS
Effective October 2, 1989, the Federal Reserve Bank of Dallas will
begin offering check truncation services in the Dallas office territory.
Check truncation services are designed to increase the efficiency of
handling paper checks or share drafts. MICR-line data from checks processed by
the Fed will be captured and delivered to the customer institution or a
designated processor either electronically over the RESPONSE network or via
magnetic tape. The physical checks will be microfilmed, then safekept for a
period of 90 days and subsequently destroyed. Microfilm of the checks will be
kept for seven years. Return items will be pulled upon notification and
processed during the next return item processing cycle. Also, the physical
checks or information contained on the checks will be retrieved and delivered
upon request.
Financial institutions that use the check truncation services will
benefit from the cost savings resulting from the reduced handling of paper
checks and a reduction of risk associated with late returns.
Fees associated with check truncation services are listed on the
reverse side of this circular.
MORE INFORMATION
For further information concerning check truncation services, please
consult this Bank’s Bulletin 17 or call Robert L. Whitman at (214) 698-4357 or
Eric Lendl at (214) 651-6626.
Sincerely yours,

For additional copies of any circu lar please conta c t the Public A ffairs D ep artm en t at (214) 6 51 -6 2 8 9 . Banks and others are
encouraged to use the follow ing in com ing W A TS numbers in c o ntacting this Bank (800) 4 4 2 -7 1 4 0 (intrastate) and (800)
5 2 7 -9 2 0 0 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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Truncation:
Basic Service
Fine Sort:
per item
per package
Return Item:
via fax transmission
via telephone
Retrievals
Data Transmission
Magnetic Tape surcharge

NOTE:

$

.020

$ .020
$ 2.00
$ 1.70
$ 2.00
$ 1.25
$ .005
$12.50

The basic service includes MICR-line data capture, microfilming, and
safekeeping of all high-speed and rejected checks. The physical checks
will be kept for 90 days and microfilm for seven years.

Fine sort truncation fees will be charged if the customer requests that their
checks included in package sort cash letters be truncated.
Return item notification can be made through facsimile equipment or telephone
contact with the Fed. Fees are different for each notification type.
Retrieval requests are handled through telephone contact with the Fed.
A separate fee is charged for electronic transmission of the MICR-line data
based on the number of checks transmitted. Also, there is a magnetic tape
surcharge if that media is chosen as the data delivery mechanism.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102