The Federal Reserve Board announced on November 12 that prices for the payment services the Reserve Banks sell to banks and credit unions will rise by an estimated 1.4% on average for established services from January 1, 2027. A year ago the 2026 schedule carried an estimated 0.9% increase.
The recovery forecast moved the other way. The Fed expects to recover 101.5% of actual and imputed expenses in 2027, against 108% forecast for 2026. The Board memo says every mature service line except Check is expected to reach full cost recovery in 2027, and that Check Services will under recover mainly because of expected volume declines and infrastructure upgrade costs.
Check is where most of the change sits. The Reserve Banks are raising various check fees, retiring some low-volume check products and cutting check processing hours during quiet periods such as some weekends and holidays. The memo calls these the first steps in a series of changes over the coming years, informed by the Board’s 2025 request for information on check services. FedACH and FedNow fees are unchanged apart from changes announced earlier in 2026. A new FRFS Access Fee bundles a suite of FedLine services, and the Reserve Banks are reducing or removing several FedLine connectivity fees, with a 25% discount for customers that meet volume and direct-connection criteria.
For operations and treasury leads at community banks and credit unions, the memo gives a direction as well as a price. It says Fed staff will monitor check cost recovery and consider whether the Board needs to reassess the Reserve Banks’ role in check processing. Banks still clearing large check volumes through the Fed should model several years of rising check fees, and check whether they qualify for the FRFS discount. Our earlier reports covered how FedNow’s cross-border plan has a design but no start date and how Same Day ACH grew 36.7% in Q3.
Source: Federal Reserve Board
