Fed Weighs Check Service Changes Amid Rise In Digital Payments
Reserve banks offer check collection and processing services at a fee to lenders and credit unions, the Fed said in a statement.
The Federal Reserve is seeking input on potential check service changes, as the central bank weighs substantial investments in its check infrastructure.
Reserve banks offer check collection and processing services at a fee to lenders and credit unions, the Fed said in a statement. But as the use of digital payments has risen, check use has declined and fraud has increased.
Reserve banks will need to make substantial investments in their check infrastructure to continue providing the same level of services, the Fed said, adding it is considering winding down some services and significantly reducing check services moving forward.
Michelle Bowman, the Fed’s Vice Chair for Supervision, dissented against the request for information.
"I cannot support the Request for Information and Comment on the Future of the Federal Reserve Banks’ Check Services,” Bowman said in a statement. “The Check Services RFI seems to favor the discontinuation of check services by reserve banks, even while checks remain an important payment mechanism."
Payment Services
The Fed also announced Thursday the pricing for payment services provided to banks and credit unions, like the clearing of checks, automated clearing house transactions and instant payments.
The Fed said it expects to recover 108% of actual and imputed expenses in 2026, according to a statement. The pricing is effective January 1
