Newsroom

February 09, 2014

Fed reviewing comments on payment system

Feb. 10, 2014 – NAFCU will continue to urge dialogue rather than Federal Reserve intervention in payment system matters as the Fed reviews the some 200 comments it received on its paper last year addressing ideas for improvements in processing times and technologies.

The Fed issued a paper last September that looks at gaps and opportunities in the payment system, emphasizing the benefits of a payment system with near-real-time validation.

Now that it has received comments, it will review that feedback "to identify common themes and issues for future focus, as well as insights into potential solutions," said Sandra Pianalto, president of the Federal Reserve Bank of Cleveland and chair of the Financial Services Policy Committee, which issued the paper. (More on the project is on the Fed's financial services site.)

NAFCU Regulatory Affairs Counsel Angela Meyster responded to the Fed's paper in December, noting that faster validation would be helpful, as would the ability to scan checks through mobile devices and applications. However, Meyster said the Fed should focus on ongoing dialogue with stakeholders rather than direct intervention in the payment system.

The Fed said its banks have more information-gathering efforts underway, including research on end-user demand for specific payment attributes and an assessment of alternatives for speeding U.S. payments. It said a third effort involves identifying gaps and opportunities related to payment system security.

It said updates will be shared with industry stakeholders in the coming months via a number of Fed and industry forums and communications.