The Federal Reserve Board announced that the fee schedule for payment services provided by Federal Reserve Banks and used by depository institutions will go into effect Jan. 3, 2023.
The Fed is required, by law, to establish these fees to recover the long-term costs of providing payments services over the long run. With these fees, the Reserve Banks expect to recover 100.2 percent of their priced services costs for 2023, including actual and imputed expenses and profits that would have been earned if it were a private business providing the services.
Of note, the Fed also announced the 2023 service fee schedule for FedNow, the Fed’s instant payment network, which is set to launch in mid-2023. The pricing details are substantially similar to what the Fed previewed earlier this year. To encourage adoption, certain fees will be waived during the first year. Customer credit transfer up to 2,500 transactions and the FedNow participation fee will be discounted to $0.00 for 2023. The Fed has stated that the initial fee schedule for the service will change as the service matures.
NAFCU has previously worked with the Federal Reserve to develop FedNow as a secure and cost-effective platform for real time payments and has consistently advocated for the Fed to play an operational role in the faster payments landscape. NAFCU has also reiterated that FedNow would serve as a better alternative than central bank digital currency for promoting future payments innovation.
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