The Federal Reserve Board has approved a new fee schedule for payment services in 2020 that is overall 2.4 percent higher than 2019, the Fed announced in a press release on Wednesday (Nov. 27).
The new payment services fees go into effective on Jan. 2. The changes will result in average price increases of 3.3 percent for check services, 3.7 percent for Fedwire Funds and 2.9 percent for FedLine customers. Fees will stay the same as 2019 for the FedACH service, National Settlement Service and Fedwire Securities Service.
The 2020 private-sector adjustment factor (PSAF) of $18.9 million was also approved. This is an increase of $1.1 million from the 2019 PSAF of $17.8 million.
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 Reserve Banks’ priced services were provided by a private business,” per the release.
The fee schedule was established in accordance with the Monetary Control Act of 1980, which requires that the Federal Reserve recover the costs of services.