Banks Announce Strategy to Meet Evolving Demands of Payments System

Abstract

The Federal Reserve Banks announced a strategy to accommodate the evolution of the US' payments system from paper check processing to electronic processing, a development driven by a significant broad-based change in user preference. The strategy entails launching new products and services to support the implementation of the Check 21 Act October 2004, as well as streamlining its check-processing infrastructure by discontinuing check processing at locations to be announced later this year. Even with these changes, the Federal Reserve Banks will continue to provide check processing services on a national basis. As part of this strategy, the Reserve Banks will undertake a thorough annual review of their existing check processing infrastructure, including potentially discontinuing paper check processing at some locations as the market evolves.