Federal Reserve Board approves fee schedule for Federal Reserve Bank priced services
Washington, DC (STL.News) The Federal Reserve Board on Tuesday announced the approval of fee schedules, effective January 4, 2021, for payment services the Federal Reserve Banks provide to depository institutions (priced services).
The Reserve Banks project that they will recover 98.7 percent of their priced services costs in 2021. The Reserve Banks will maintain the current schedule of prices for payment services provided to depository institutions (priced services) in 2021, with the exception of a modification to the Check Services participation fee. While the Reserve Banks do not expect to recover fully actual and imputed expenses, including profit that would have been earned if a private-sector firm provided the services, in 2021, they do expect to recover fully expenses over the long run. This approach recognizes the uncertainties created by the COVID-19 pandemic and offers price stability for customers facing unique challenges in 2021. The Reserve Banks estimate that the change to the Check Service participation fee will result in a 2.7 percent average price increase for Check Services customers. Fees will remain unchanged for the Reserve Banks’ FedACH® Service, National Settlement Service, Fedwire® Funds Service, Fedwire® Securities Service, and FedLine® Solutions. The 2021 fee schedule for each of the priced services is available on the Federal Reserve Banks’ financial services website at FRBservices.orgSM.
The Board also approved the 2021 private-sector adjustment factor (PSAF) of $16.4 million for Reserve Bank priced services. The PSAF is an allowance for income taxes and other imputed expenses that would have been paid and profit 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 imputed costs, over the long run, to promote competition between the Reserve Banks and private-sector service providers.