Fed Mulls Elimination of Paper Checks

The Daily Mail reports that the Federal Reserve, which runs the national system that processes and clears paper checks between banks, "is considering ‘winding down’ the check services it provides to banks. The notice, posted quietly on its website, sYeahignals a possible long-term retreat from paper-based payments." 

The Fed said it now faces rising fraud, falling usage and soaring infrastructure costs tied to paper checks. It is weighing whether to invest heavily to keep the system running — or slowly let it fade.

But while checks "account for only about 5 percent of transactions, they represent 21 percent of the total value of all payments," and are heavily relied upon by small businesses and low income households. It seems just another way to force everyone to use digital payment transactions (and the huge fees it generates for banks).