The Federal Reserve Board on Thursday requested public input on the impact of potential strategic changes to check services provided by the Fed, as well as check usage and preferences.
The Reserve Banks offer check collection and processing services at a fee to banks and credit unions. Over time, check use has steadily declined, digital payment methods have grown in availability and use, and check fraud has risen. Also, the Reserve Banks will need to make substantial investments in their check infrastructure to continue providing the same level of check services going forward. To help the Board understand stakeholder needs and balance tradeoffs as it considers the future of the Reserve Banks' check services, the Board is seeking input on potential future changes to check services with varying effects on the level of check services offered and their costs. For example, potential future changes could include:
- Foregoing investments in the Reserve Banks' check infrastructure to keep operating costs at existing levels with reduced reliability of check services over time;
- Investing in the Reserve Banks' check infrastructure to maintain and potentially improve check services with higher operating costs; or
- Significantly reducing check services, or alternatively, substantially winding them down, both resulting in reduced operating costs.
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.
Comments are due within 90 days after publication in the Federal Register.
