Payment service fees rise 1.4 percent on average in 2027
Federal Reserve payment service pricing takes effect January 1, 2027, raising customer prices by an average of 1.4 percent. The changes introduce an access fee, simplify connectivity charges and reduce some check service offerings and operating hours.
Access bundled as checks contract
The Federal Reserve (Fed) plans an FRFS Access Fee covering a suite of FedLine services, with corresponding connectivity fee reductions or eliminations.
Customers meeting multi-service volume and direct-connection requirements receive a 25 percent discount; the changes are designed to be revenue neutral in 2027.
Check fees rise, low-volume products retire and operating hours shorten during low-activity weekend and holiday periods.
Fedwire Funds transfer fees increase, while Fedwire Securities transfer and maintenance fees decrease.
Certain network hardware fees rise to encourage required upgrades.
FedACH and FedNow fees remain unchanged beyond changes announced earlier in 2026.
Higher service costs and simpler pricing motivate the changes.
Cost recovery exceeds expenses
Mature services recovered 103.7 percent of expenses and targeted profits over 2016-2025.
Staff forecast 101.5 percent recovery in 2027, with checks alone below full recovery.
The proposed private sector adjustment factor is $35.3 million, up $1.2 million from 2026.
Drivers include $1.6 million more in Board expenses and $0.3 million more in sales taxes, offset by $0.8 million less in capital costs.
The Monetary Control Act of 1980 requires long-run cost recovery, measured over 10 years for mature services; FedNow's first long-run recovery is anticipated outside that timeframe.
Check processing faces further pruning
Declining check volumes and infrastructure upgrades weigh on cost recovery.
Following its 2025 request for public input, the Board plans further simplification and regular fee increases to maintain check processing.
Staff will monitor recovery and alternative payment adoption when assessing that role.