Fed Board Approves Fee Schedules for Payment Services
The Federal Reserve Board announced on Thursday the approval of fee schedules, effective January 2, 2014, for payment services the Federal Reserve Banks provide to depository institutions (priced services).
The Reserve Banks project that they will recover 102.3 percent of their priced services costs in 2014. The Reserve Banks expect to recover all of their actual and imputed expenses, and earn a profit that is above their targeted return. Overall, the price level for Reserve Bank priced services will increase approximately 1 percent in 2014 from 2013. The effective fees for the Reserve Banks' Check 21 services are expected to decline 2 percent. In addition, the effective fees for the Reserve Banks' FedACH® service will decline marginally. The effective fees will increase about 8 percent for Fedwire® Funds and National Settlement Services and decrease about 1 percent for Fedwire® Securities Service. The Board also approved a modest increase to FedLine® access fees.
The 2014 fee schedule for each of the priced services, except the extensive check service fee schedule, is included in the attached Federal Register notice. Fee schedules for all priced services will be available on the Federal Reserve Banks' financial services website at www.frbservices.org.
Lastly, the Board approved the 2014 private-sector adjustment factor (PSAF) of $23.4 million for Reserve Bank priced services. The PSAF is an allowance for income taxes and other imputed expenses that would have been paid and profits that would have been earned if the Reserve Banks' priced services were provided by a private business. The Monetary Control Act of 1980 requires that the Federal Reserve establish fees to recover the costs of providing priced services, including the PSAF, over the long run, to promote competition between the Reserve Banks and private-sector service providers.
The Board's notice is attached.
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