Federal Reserve Banks’ Check Restructuring Resource Center

The Federal Reserve is making changes to its check processing and adjustments operations in response to the changing market, including the decline of paper check volumes industry-wide. As the industry continues to evolve, we will adapt to remain competitive as a leading payments provider, while focusing on creating value for you.

Federal Reserve Banks Announce Restructuring Schedule Changes As Electronic Check Processing Continues to Accelerate

On March 31, 2008. the Federal Reserve Banks today announced modifications to the schedule for previously announced check processing infrastructure changes as consumers and businesses continue the shift from using paper checks toward electronic payments and as financial institutions rapidly adopt electronic check processing.

In June 2007, the Federal Reserve Banks selected Philadelphia, Cleveland, Atlanta and Dallas as regional check processing sites that are expected to provide a full range of paper check processing services and receive processing volume from other sites in a phased transition.  Other remaining sites will have their operations scaled back.  These scaled-back sites will all print substitute checks, but some will also capture paper check images for processing.

The revised schedule will take effect immediately, with seven sites transitioning in 2008 as opposed to the five that were originally scheduled. Also, the overall transition schedule has been shortened and is set to conclude in early 2010 instead of early 2011. The Reserve Banks will continue to review their check infrastructure annually to respond to further change within the nation’s payments system and to meet statutory requirements for long-term cost recovery.

For more information, please see the press release (Off-site Link).

Regulatory Communications

The Federal Reserve Board is periodically amending the routing symbol lists in appendix A of Regulation CC, deleting the reference to the Reserve Bank office that will no longer process checks and reassigning that office's routing symbols to another Reserve Bank office. The Board is publishing each final rule in the Federal Register at least 60 days before check processing shifts to a different Reserve Bank office.

A link to each final rule that the Board has published is available from the Federal Reserve Board's public website (Off-site Link).

How will my financial institution be affected?

Minimizing the impact on our customers is one of our highest priorities. We are working to maintain deposit times and availability as close as possible to current service levels. In addition, a transit point will be established in each of the cities where checks will no longer be processed.

For more information, please see the Frequently Asked Questions.

Our Commitment to You

Throughout this period of change, the Reserve Banks remain committed to delivering the same integrity, reliability and high-level of service you have come to expect.

If you have a question related to check restructuring, please visit My FedDirectory for a personalized list of check contacts or send us an e-mail.

Top of Page