Fed raises cost of check processing

Northwestern Financial Review, Nov 15-Nov 30, 2003

The Federal Reserve has raised the cost of its check processing services by 5 percent, according to a fee schedule adopted by the Fed Board. The Fed reduced its fees for electronic payment services by 1 percent. The new fees take effect Jan. 2,2004. The Fed noted that it has taken aggressive steps to hold down check processing costs, such as consolidating operations and eliminating processing at 13 offices.

The Fed Board also approved, effective Jan. 8, 2004, changing the earnings credit rate on clearing balances from the federal funds rate to 90 percent of the three-month Treasury bill rate, and increasing the frequency with which depository institutions can change contracted clearing balances.