Posted July 21, 2014
On July 15, 2014, the Federal Reserve Financial Services group announced that its research and development on electronically created items (ECI) has been discontinued. "In 2013, the Retail Payments Office of the Federal Reserve Banks formed an industry work group consisting of financial institutions, nonbank service providers and businesses to consider barriers and risks preventing the evolution of electronically created items (ECI)—or electronic payment orders as they were referred to at the time—and to identify use cases that could drive a potential industry solution design. The work group was formed following the EPO Forum held in early 2013 after the industry showed much interest in EPOs at the 2012 Chicago Payments Symposium. Since then, the Federal Reserve Banks have worked with this group to conduct thorough study and evaluation of the opportunities and requirements for implementation of an ECI solution. Following this analysis, and based on feedback from the “Payment System Improvement – Public Consultation Paper,” the Federal Reserve Banks have determined that additional ECI research and development will be discontinued at this time. Key factors contributing to this decision include the declining use of checks overall, changes in the U.S. payments landscape brought about by a number of emerging payment options, and the rule development efforts required for introduction of an ECI solution. As changes in the payments landscape warrant, the Reserve Banks may re-evaluate ECI development opportunities. For updates on the Federal Reserve Financial Services strategic direction and ongoing efforts to meet the evolving needs of payment system users for end-to-end payment speed, efficiency and security, please visit FedPaymentsImprovement.org."
See FRBServices.org for additional information.