The Federal Reserve is seeking public comment on "payment accounts": eligible financial institutions can use them for limited payment clearing and settlement.

The Federal Reserve has announced a public consultation on "payment accounts," which eligible financial institutions could use for limited payment clearing and settlement. Unlike primary accounts, payment accounts do not pay interest, cannot access Federal Reserve credit, and are subject to balance limits. Primary accounts are currently the accounts financial institutions use to obtain payment services from the Federal Reserve. The consultation aims to promote innovation in payment accounts while ensuring the security of the payment system.