Fees for the payment services the Federal Reserve Banks provide to depository institutions will rise an average 3.7% as of Jan. 3, the Federal Reserve Board announced Wednesday.
The Fed said increases in the fee schedule for 2022 are generally similar to previous years, except 2021 where fees other than the Check Services Participation Fee remained flat.
The priced services are categorized within check services, FedACH, Fedwire® Funds and NSS, and Fedwire Securities. The 2022 fee schedule for each of the priced services is available on the Federal Reserve Banks’ financial services website at FRBservices.org®. Specific fee changes are detailed more fully in the Fed’s draft notice for the Federal Register, which also details the Fed-approvd $19.4 million “private sector adjustment factor” (PSAF) for 2022.
The Fed’s approval of the PSAF and the 2022 fee schedules was carried out in accordance with the Monetary Control Act of 1980. The act requires that over the long run (generally a rolling 10-year period for “mature” services), fees for Federal Reserve priced services be established based on all direct and indirect costs, including the PSAF.
The fees are set to recover, over the long run, all direct and indirect costs and imputed costs, which are collectively referred to as the PSAF. These costs include financing costs, taxes, and certain other expenses, as well as the return on equity (profit) that would have been earned if a private-sector business provided the services, the Fed said.
Federal Reserve Board approves fee schedule for Federal Reserve Bank priced services