Just as a network of rivers carries water throughout a nation, the payments system keeps money streaming between buyers and sellers of goods and services. Every day, hundreds of millions of retail payments occur, including car payments that are automatically debited from consumer accounts, online bill payments, and credit and debit card transactions for a host of purchases. And there’s always cash.
As the nation's central bank, the Federal Reserve keeps the payments system functioning by making sure currency is available, electronically transferring money, and processing checks. The Fed is also a thought leader working with the industry at large to promote improvements in efficiency and effectiveness of the payments system.