Continuing the Federal Reserve's strategy to serve our customers in the most efficient way possible, the Fed announced changes in the spring to check processing and adjustment operations as consumers and businesses continue the shift from paper checks toward electronic payments. As part of these changes, the Kansas City Fed's check processing operations will be consolidated into St. Louis'.
Although no firm date for the transition has been determined, it is expected to take place in late 2007 or the first half of 2008.
In addition, the Eighth District's check adjustment operation will be absorbed into a regional adjustment site in mid-2007.
Because adjustments are already submitted to a central site—the Richmond Fed's Charlotte office—and researched remotely from various other Reserve offices, the consolidation of Eighth District adjustments to a regional site will be transparent to customers. You will notice no difference in the high quality and speed of service you have come to expect from the Fed.
These changes will help us reduce check service operating costs to bring them in line with the continuing shift in consumer and business preferences for electronic payments. In addition, these changes support our long-term strategy to use Check 21 to collect more checks electronically, reducing the reliance on the physical transportation of checks.
We'll let you know the final details once we know the dates of the consolidations.