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The Federal Reserve Board has approved of the fee schedules for payment services the Federal Reserve Banks provide to depository institutions in 2020. The changes are estimated to result in a 2.4 percent average price increase across their services.

With these fees, the Reserve Banks expect to recover more than 100 percent of their priced services costs, including actual and imputed expenses and profit that would have been earned if it were a private business providing the services.

NAFCU's annual Report on Credit Unions includes a breakdown of which Federal Reserve services credit unions use, as well as ratings of their quality and competitiveness of pricing; download the 2019 report now. NAFCU's Board of Directors met recently at the Federal Reserve with Board Governor Michelle Bowman to share results from this year's report and review various issues affecting the credit union industry.

The Fed approved $18.9 million for the 2020 private-sector adjustment factor (PSAF). The PSAF is an allowance for income taxes and other imputed expenses that would have been paid and profit that would have been earned if the priced services were provided by a private business.

The fee schedules will go into effect Jan. 2.