Monetary and Banking Compact

The Monetary and Banking Compact is a mechanism within Lovian - United States relations that provides an administrative and commercial framework to facilitate the use of US currency, and payment technologies associated with it, by and within Lovia. This has evolved largely within the private sector with little involvement of the respective governments, though the Federal Reserve Bank of San Francisco has kept an office at the American Legation on Embassy Row for many years, and at least one economist with the Lovian foreign service has typically been granted observer status to attend meetings of the Federal Reserve Board.

Overview
In a nutshell, the use of a Lovian payment product to fund a transaction in the United States, or vice versa, is essentially treated as a domestic transaction at both ends. There is no surcharge, as only one currency is involved, and the Lovian and American mechanisms for acquiring, processing, collecting, and settling all types of plastic, PIN, and paper transactions are fully compatible with each other and operated according to the same procedures and standards.

Remote deposit service
One service available through any banking office in Lovia involves the ability to arrange a remote deposit to any checking or savings account situated within the Lovian-American dollar sphere for which a customer can produce a MICR-encoded deposit slip. This evolved from a similar mechanism that exists between US credit unions. In like manner, plans are underway to enable the holder of any charge card to walk into any bank branch with any quantity of cash and arrange a "push payment" on their account.