Federal Reserve: Request for Information on the Future of the Federal Reserve Banks’ Check Services (April 13, 2026)

On behalf of FMI – The Food Industry Association, I write to express our appreciation for the opportunity to provide feedback on the Request for Information (RFI) and Comment on the Future of the Federal Reserve Banks’ Check Services (Docket No. OP-1874). FMI welcomed the chance to meet with Federal Reserve staff on the RFI in February and we write to provide additional feedback regarding the importance of paper checks to the food industry.

FMI member companies utilize or accept paper checks for various business functions and operations. In grocery stores, checks are accepted for the purchase of goods and pharmacy and in-store clinic services, customer service functions such as money orders and transfers, as well as bill-paying services. Retailers reported that they also issue refunds via check to customers for products, and many product manufacturers still produce paper checks for customers to redeem a product. With regard to the business operations, checks are utilized for vendor, supplier, and accounts payable and receivable payments, and employee payroll. Some grocery stores report offering in-store charge accounts to local businesses, such as schools, restaurants, houses of worship and charities. These accounts are typically settled at the end of the month by check. One FMI member notes that they help with non-profit organizations’ fundraisers by offering discounted store gift cards that are then sold at face value by the organization. The purchase of these discounted store gift cards must be paid for by check or cash. Separate from these operations and as discussed with Federal Reserve staff in February, in-store bank branches, by and large, are not owned by a retailer. The space for the in-store bank branch is leased to a financial institution which operates the branch.