Overview
- The Board launched a public comment process and has not made a final decision on the future of Federal Reserve check-processing operations.
- The move to solicit input passed 6–1, with Michelle Bowman dissenting on grounds the request appears to favor discontinuation of services.
- The RFI outlines options that include investing to maintain services at higher cost, holding costs steady with reduced reliability, or significantly reducing or winding down services.
- Check usage has dropped sharply, with Atlanta Fed data showing household bill payments by check falling from about 19% in 2020 to roughly 6–7% by 2024, as fraud concerns have grown.
- The shift follows broader government moves away from paper payments, including the Social Security Administration ending mailed benefits on Sept. 30 under a March executive order, while industry groups warn of risks for remaining check users.