The Federal Reserve Board issued a request for information and comment on the impact of possible strategic changes to check collection and processing services provided by the Federal Reserve Banks, alongside stakeholder views on check usage and preferences. The Reserve Banks provide fee-based check services to banks and credit unions, but the Board cited declining check use, increased availability and use of digital payments, rising check fraud, and the need for substantial investment in check infrastructure to sustain current service levels. The Board outlined potential paths ranging from foregoing infrastructure investment (implying reduced reliability over time), to investing to maintain or improve service (with higher operating costs), to significantly reducing or substantially winding down check services (with lower operating costs). The request includes questions on impacts, including effects on consumers and businesses, and notes that if analysis supports a strategy with significant longer-run effects on the US payments system, additional public comment would be sought before adoption. Comments are due within 90 days after publication in the Federal Register.
Federal Reserve Board2025-12-04
Federal Reserve Board requests public input on potential strategic changes to Federal Reserve Banks check services
The Federal Reserve Board seeks input on strategic changes to check collection and processing by Federal Reserve Banks, amid declining check use and rising digital payments. Options include reducing infrastructure investment or winding down check services, affecting operating costs and service reliability. Stakeholder feedback is requested on impacts, including effects on consumers and businesses.