WASHINGTON, DC (March 11, 2026) |
The Defense Credit Union Council (DCUC) has filed a comment letter with the Federal Reserve in response to its request for information regarding the future of the Federal Reserve Banks’ check services and whether further investments in those services are warranted as the payments system evolves.
“DCUC recognizes that checks have long served as a cornerstone of the nation's payments system, especially for credit union members. We also acknowledge that this previously preferred noncash payment instrument has steadily declined in popularity due to the growth of alternative methods of noncash payments such as instant payments, automated clearinghouse (ACH), credit cards, debit cards, and prepaid cards,” DCUC wrote.
“The Federal Reserve states, and we agree, that as the total number of checks processed by the Federal Reserve Banks declines, the long-term viability of the Reserve Banks’ check services is at risk due to cost recovery, aging infrastructure, and consumer trends. As a general comment, DCUC urges the Federal Reserve to engage in a deliberate and thoughtful strategy that maintains the current check payments system while gradually winding down services as the payment system evolves. The Federal Reserve should maintain transparency and collaboration with credit unions and their membership so all parties can successfully navigate any transition.”
DCUC provided its comments to specific questions about the current check services infrastructure and offered to provide future feedback as the Federal Reserve determines next steps. See DCUC’s official response for more details.