An average 2.5% increase in the fees charged by Federal Reserve Banks for payment services to depository institutions (priced services) is set to take effect Jan. 2, the Federal Reserve Board said Friday.
The Reserve Banks estimate that the price changes will result in a 4.0% average price increase for check-clearing customers; a 2.0% average price increase for Fedwire® Funds customers; and a 6.0% average price increase for Fedwire® Securities customers, the Fed said in Friday’s announcement. The fees will remain unchanged for the Reserve Banks’ FedACH® Services and National Settlement Service. Lastly, the Reserve Banks estimate that the price changes will result in a 7.5% average price increase for FedLine®Solutions customers. The 2019 fee schedule for each of the priced services is available on the Federal Reserve Banks’ financial services website at FRBservices.orgSM.
The Fed Board also approved the 2019 private-sector adjustment factor (PSAF) of $17.8 million for Reserve Bank priced services. The PSAF is an allowance for income taxes and other imputed expenses that would have been paid and profit that would have been earned if the Reserve Banks’ priced services were provided by a private business.
The Monetary Control Act of 1980 requires that the Federal Reserve establish fees to recover the costs of providing priced services, including imputed costs, over the long run, to promote competition between the Reserve Banks and private-sector service providers.