The Federal Reserve Banks provide the Treasury and other government agencies with a variety of payment services. The Reserve Banks maintain the Treasury's funds account, accept deposits of federal taxes and fees, pay checks, and make electronic payments on behalf of the Treasury. For government agencies, the Reserve Banks process food coupons and United States postal money orders, among many other activities.

In addition to these payment services, the Reserve Banks offer numerous other services as fiscal agents of the United States. For example, the banks provide services in the areas of marketable and nonmarketable securities (such as issuance and redemption of Treasury securities and U.S. savings bonds), collateral management, and computer application development and web hosting. The Reserve Banks are assisting the Treasury in its efforts to improve U.S. government payments and receipts processes through increased use of electronic media, including the Internet.

Each year the Reserve Banks incur expenses of roughly $300 million in performing the various fiscal agency services. The Treasury or government agencies reimburse the Reserve Banks for these expenses.