Figure 27.4 Federal- Reserve Collection Bank Depository Bank Step 3 Step 4 Payor Bank Step 2 Step 5 Step 1 Payee Payor Step 1: Payee provides goods and services to payor; payor gives check to payee. Step 2: Payee deposits check. Depositary bank credits payee’s account. Step 3: Depositary bank sends check to the Federal Reserve bank. The Federal Reserve bank credits the depositary bank for the check. Step 4: The Federal Reserve bank sends the check to the payor bank and debits it for the check. Step 5: The payor bank debits the payor for the check.