Fed Sets 2006 Payment Services Schedule

Hoosier Banker, Jan 2006

The Federal Reserve November 2005 approved fee schedules for payment services for depository institutions, effective Jan. 3 of this year. Overall, the price level for Fed-priced services will increase about 3 percent in 2006, reflecting about a 5 percent rise in paper check service fees, along with a 1 percent decrease in fees for the Federal Reserve Banks' electronic payment services.

The Fed also approved the 2006 private-sector adjustment factor for Reserve Bank-priced services of $117.7 million. The Federal Reserve Banks estimate they will recover 103.6 percent of their priced-services costs in 2005, and 102.5 percent of such costs in 2006. They also expect to realize full-year operational efficiencies and cost savings associated with check restructuring efforts this year.