ICBA urges grassroots outreach on check services

ICBA is urging community bankers to submit comment letters on the future of the Federal Reserve Banks’ check collection and processing services.

Background: On Dec. 4, the Fed requested information on the future of the reserve banks’ check collection and processing services. The Reserve Banks offer these services, including multiple daily deposit deadlines, return processing, and discrepancy resolution, to banks for a fee. For many community banks, the Reserve Banks are the primary or sole check-processing provider.

Submit Comments: ICBA’s Be Heard grassroots action center features a step-by-step guide for community bankers to use to communicate the importance of the Reserve Banks’ check services. Comments are due by March 9.

Bowman Opposition: Fed Vice Chair for Supervision Michelle Bowman in December said she could not support the request for information, which she said seems to favor the discontinuation of check services by the Reserve Banks.

Check Fraud Resources: Amid the dramatic rise in check fraud, ICBA continues to encourage community banks to use:

• The Treasury Department’s Treasury Check Verification System to catch canceled, duplicate, or other problematic Treasury checks at the time of presentment.

• Nacha’s ACH Contact Registry, which includes thousands of check contacts.

• ICBA’s customizable news release via ICBA’s Marketing Resource Center and check fraud prevention flyer to distribute to customers.

• Community banker resources on the ICBA website, including ICBA guides on check fraud and online fraud courses.

• ICBA Community’s Fraud subgroup, which includes more than 1,200 members dedicated to discussing fraud.

• ICBA’s Solutions Directory to identify payments, compliance, and security service providers dedicated to community banks.