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For Educational Purposes Only- Reuters on Yahoo

Friday July 23, 5:02 pm Eastern Time U.S. direct deposit clearing system passes Y2K NEW YORK, July 23 (Reuters) - A nationwide payments system used for the direct deposit of payroll checks into bank accounts said on Friday it successfully completed a test to ensure that its computers would be Y2K compliant.

The system also handles personal computer banking and theautomatic deposit of Social Security and pension payments.

A test of the so-called Automated Clearing House payments system showed the safe transfer of deposits and other funds across the nation for the year 2000, the New York Clearing House Association said.

The clearing house, the first and largest U.S. bank clearing house, in June initiated a successful test of banks in 19 countries to ensure the global payments system would not miss a beat as the clocks moved past Dec. 31, 1999.

The most recent test showed that the Automated Clearing House, an electronics payments system used to transfer funds nationally and locally between financial institutions using electronic methods, could operate using year 2000 data.

``Essentially, what this means is if you have your Social Security benefits or pay automatically deposited into your bank account, the Automated Clearing House can successfully transfer the money into your account,'' George Thomas, senior vice president of the New York Clearing House Association said.

-- Mike Lang (webflier@erols.com), July 23, 1999

Answers

http://biz.yahoo.com/rf/990723/bau.html Sorry. At work and in a hurry.

-- Mike Lang (webflier@erols.com), July 23, 1999.

I would be amazed if the testing of this one system assured that all direct deposits would be properly credited. Social Security checks were mentioned. Isn't this test like making sure that there are no wrecks on the track in the last mile of the 100 mile race? If the FMIS system and all of the systems used to develop the data to compute the checks is not compliant, the fact that the checks can be processed by the banks proves that part of the problem is solved. I am not confortable about this because it it doesn't work, I do not get paid and my participation was not voluntary. (Federal employee).

-- Tom (Tom@bb.gom), July 23, 1999.

I am worried about a suspect treasury transmitting to a suspect bank using a suspect transfer ageng and clearing house.

-- dave (wootendave@hotmail.com), July 23, 1999.