In the face of the rise of digital payments, the Federal Reserve is weighing check service reform.

As the Federal Reserve weighs significant investments in its check infrastructure, the central bank is seeking input on potential check service reforms. The Federal Reserve stated in a release that reserve banks provide check collection and processing services to depository institutions and credit unions, charging a certain fee. However, as the use of digital payments increases, the use of checks has decreased, while fraud incidents have increased. The Federal Reserve said reserve banks will need to make substantial investments in their check infrastructure to continue providing the same level of service, and added that the Fed is considering gradually discontinuing some services and significantly reducing future check services.