Central Banking

Fed hikes cheque processing costs by 41%

In a bid to encourage the move to electronic processing of cheques, the Federal Reserve will increase its charges for the processing of paper by 41% in 2009.

In contrast the Fed says it will increase the charge for electronic payments by only 2%.

The move comes as the US experiences a dramatic shift from paper to electronic processing of cheques.

From a rate of just over 40% in 2007, the number of cheques deposited electronically has grown rapidly. In August 2008, the proportion deposited ele