The Federal Reserve Board has announced it is seeking public feedback on possible changes to the check services provided by the Federal Reserve Banks. The request comes as check usage continues to decline, digital payments become more common, and instances of check fraud increase.
Currently, the Reserve Banks offer check collection and processing services for a fee to banks and credit unions. However, maintaining these services would require significant investments in infrastructure to keep providing them at their current level.
To better understand the needs of stakeholders and evaluate potential tradeoffs, the Board is asking for input on various scenarios that could affect both the extent of check services offered and their associated costs. These changes may have differing impacts on consumers and businesses.
“The Board’s request for public input asks several questions about these potential changes, including the impact on consumers and businesses. This request for public input is preliminary. Accordingly, if commenters and the Board’s analysis support a strategy that may have significant longer-run effects on the nation’s payments system, the Board would seek additional public comment on such changes to check services prior to adoption.”
Members of the public are invited to submit comments within 90 days after publication in the Federal Register.
A notice regarding this request for information is available through a Federal Register notice: Request for Information and Comment on the Future of the Federal Reserve Banks’ Check Services (PDF). Further details can also be found in a related Board Memo (PDF).