Overview
- The Federal Reserve Board voted 6–1 to publish a Request for Information on Reserve Bank check services, launching a 90-day public comment window.
- Options under review include investing to maintain or improve check processing, foregoing upgrades with declining reliability over time, or significantly reducing or winding down services.
- Governor Michelle Bowman dissented, arguing the request appears to favor discontinuation despite checks remaining an important payment method.
- The Fed cites sharp declines in check use, rising check fraud, and the need for substantial infrastructure investment, with Atlanta Fed data showing bill payments by check fell from about 19% in 2020 to roughly 7% in 2024.
- Stakeholders warn a pullback could harm people and businesses that still rely on checks, including unbanked and older Americans, while federal benefit payments have already moved to electronic delivery since September under a White House order.