Regional Check Processing Center - RCPC

AAA

DEFINITION of 'Regional Check Processing Center - RCPC'

A local Federal Reserve facility where checks that are drawn on depository institutions are processed overnight. A regional check processing center conducts check-clearing operations including paper and electronic, and interbank check clearing. A depository institution is a financial institution such as a savings bank, credit union, commercial bank or savings and loans where the public makes deposits. Due to the increasing reliance on electronic check processing, the Federal Reserve Bank mainly processes electronic forms of payment through credit cards, debit cards and online account transfers versus paper checks.

INVESTOPEDIA EXPLAINS 'Regional Check Processing Center - RCPC'

The Federal Reserve continuously updates its check processing systems and restructures its schedules in order to meet the demand of check processing and make it more efficient in accordance with technological advancements. According to the Fed, the number of checks written in the United States has been declining since the mid 1990s; however, electronic processing of checks is increasing.

RELATED TERMS
  1. Transit Item

    Any check or draft that is issued by an institution other than ...
  2. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  3. Retail Banking

    Typical mass-market banking in which individual customers use ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Bad Check

    A check drawn on a nonexistent account or on an account with ...
  6. Wall Street Journal Prime Rate

    An interest rate that large banks in the United States charge ...
Related Articles
  1. Retirement

    The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.
  2. Budgeting

    When Good People Write Bad Checks

    Overdraft protection can help when you overestimate your balance, but it will cost you.
  3. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  4. Economics

    What’s Driving U.S. Stocks? Irony.

    A seesaw week for U.S. stocks ended on the upside last week, though the rally was more a function of slow growth rather than a booming economy.
  5. Economics

    What Do You Need To Know About Inflation?

    When it comes to inflation, there is no shortage of opinions: one side argues the Fed should raise rates, and the opposition says the Fed should stay put.
  6. Economics

    Worried About The Fed Hike?

    With the Nasdaq crossing the threshold and the broader equity bull market entering its 7th year, many investors are anxious that stocks are in a bubble.
  7. Bonds & Fixed Income

    How Rate Hikes Will Affect Your Investments?

    An interest rate hike by the Fed, which will happen either during their June or September meeting, could impact your fixed income investments.
  8. Economics

    What's The Impact On Equities If The Rates Hike?

    The Fed is on course for raising interest rates. True, that leaves the question of when (most likely June or September, but could be later) and how much.
  9. Investing

    Are You Ready To Invest In The Tech Sector?

    Tech stocks, particularly those of mature tech companies, are well positioned and offer meaningful upside potential in the near-term.
  10. Investing

    The Impact Of A Stronger Dollar In The Markets

    The economy continues to improve, but also demonstrated that some areas of the stock market are more vulnerable to an increase in interest rates.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center