Board of Governors of the Federal Reserve System

I cannot support the Request for Information and Comment on the Future of the Federal Reserve Banks' Check Services (Check Services RFI). The Check Services RFI seems to favor the discontinuation of check services by Reserve Banks, even while checks remain an important payment mechanism. The materials note that in 2021, about 11 billion checks were written, and while they accounted for approximately 5 percent of the overall noncash payments, they represented about 21 percent of noncash payments value. Checks remain important payment mechanisms for consumers and businesses.

The Check Services RFI also notes that checks are susceptible to fraud because they can be stolen, altered, or forged. Fraud is a critical issue in the U.S. payments system that warrants ongoing attention. In June, the Federal Reserve, along with the FDIC and OCC, requested public comment on how best the agencies can support efforts to address payments and check fraud. We are now in the process of reviewing responses to this request. Although no single agency can address the issue of payment and check fraud on its own, we must take steps to address this growing problem. Discontinuing Federal Reserve check services is not an efficient solution to the growing problem of payments fraud, particularly in light of the ongoing role of checks in the payments system.

While I do not support the Check Services RFI, I look forward to reviewing public feedback on this topic.