Fed expects 1.4% rise in payment-service prices for 2027

The Federal Reserve expects a 1.4% average price rise for established payment services in 2027, as it changes fees and check-processing arrangements for banks and credit unions from 1 January.

The services include cheque clearing, automated clearing house transactions, instant payments and wholesale payment and settlement. The Federal Reserve says the changes apply to financial institutions’ use of its services, not to consumers’ or businesses’ ability to pay by cheque or receive one.

By law, the central bank must set fees to recover the services’ costs, including imputed costs, over the long term. It expects to recover 101.5% of actual and imputed expenses in 2027, including the return on equity a private-sector provider would have earned.

The check-service changes include adjusting processing windows during low-volume periods, raising fees paid by banks and credit unions, and other operational updates. The Fed says cheque volumes are declining, but the payment method remains important to many consumers and businesses. Its full 2027 fee schedule is available through the Federal Reserve’s payments-services website.