With check use steadily declining, check fraud rising, and digital payment methods growing in availability and use, the Federal Reserve wants the public to weigh in on the future of Reserve Banks’ check services, the agency said late Thursday.
That future may include less spending on check services infrastructure, winding down the services – or spending more at “higher operating costs.”
In a release, the Fed it will take comments, for 90 days (after publication of the comment call in the Federal Register). “on the impact of potential strategic changes to check services provided by the Fed, as well as check usage and preferences.”
The agency said it is considering future changes to check services that will affect services offered and their costs. Those 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 agency said that, to maintain current service levels, the Reserve Banks “will need to make substantial investments in their check infrastructure.” That, it indicated, was the impetus behind the comment call.
“The Board’s request for public input asks several questions about these potential changes, including the impact on consumers and businesses,” the Fed said. However, it also noted that the comment call 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,” the Fed said.
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