Financial Services
Federal Reserve System
Main Function:
Electronic Payment Services:
Automated Clearinghouse (ACH)
Some examples are Social Security payments, insurance premium payments, and utility payments.
A large-dollar electronic payment system owned and operated by the Federal Reserve Banks that transfers funds between financial institutions. Participants typically have to transfer large dollar and time-critical payments. Most transactions are done online and completed in seconds.
Check Collection
Cash and Coin
The Fed makes sure there is enough money in circulation. Reserve Bank offices maintain cash and coin processing operations to accept deposits and distribute cash and coin to financial institutions. While depositing in the Federal Reserve, the notes that are suspected of being counterfeit are separated from the rest and forwarded to the Secret Service, and the notes that are too worn for re-circulation are destroyed and replaced by new ones from the Bureau of Engraving and Printing of the Department of the Treasury, which designed and printed them.