Fed Raises Check Fees as Businesses Keep Writing Them
Federal Reserve hikes check fees as businesses continue using paper payments.
In brief
Federal Reserve hikes check fees as businesses continue using paper payments. The Federal Reserve projects a 5.4% average increase in check-service prices starting January 1, 2027, while businesses still rely on checks for B2B payments. Originally reported by Pymnts.
Check Usage in Business
Small- to medium-sized businesses operating for at least 20 years made 54% of their vendor payments by check.
Federal Reserve Fee Increase
The Federal Reserve projects a 5.4% average increase in check-service prices starting January 1, 2027.
Same Day ACH Limit Increase
Nacha will raise the Same Day ACH limit from $1 million to $10 million in September 2027.
Check Processing Costs
The FedReceipt Daily per-item charge rises from $0.0005 to $0.0015, adding $100 per 100,000 items.
Payment Shift Opportunities
Businesses can move payments to ACH to save costs as check fees increase.
Next Steps for Banks
Banks may use savings from lower check fees to improve ACH services for business clients.
In short
The Federal Reserve projects a 5.4% average increase in check-service prices starting January 1, 2027, while businesses still rely on checks for B2B payments.
