4 ms·

This is changing with FedNow, where payments settle fast enough for synchronous applications. https://www.frbservices.org/financial-services/fednow https://www

This is changing with FedNow, where payments settle fast enough for synchronous applications. https://www.frbservices.org/financial-services/fednow https://www.frbservices.org/financial-services/fednow

sidewndr46 3y ago
FedNow is a service for banks, not for bank customers. The original post is about timelines for customers transfers
- throw0101b 3y ago
  Individuals too: > FedNow is an instant payment service developed by the Federal Reserve for depository institutions in the United States, which allows individuals and businesses to send and receive money.[1][2][3][4] * https://en.wikipedia.org/wiki/FedNow https://en.wikipedia.org/wiki/FedNow > The FedNow Service went live on July 20, 2023. It is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. […] At the most fundamental level, the service provides interbank clearing and settlement that enables funds to be transferred from the account of a sender to the account of a receiver in near real-time and at any time […] * https://www.federalreserve.gov/paymentsystems/fednow_about.htm https://www.federalreserve.gov/paymentsystems/fednow_about.h... > The Federal Reserve said on Monday that it would create a real-time payments system, with the goal of making paychecks and money transfers available for use more quickly. * https://www.nytimes.com/2019/08/05/business/economy/fed-real-time-payments.html https://www.nytimes.com/2019/08/05/business/economy/fed-real... (Your back-end has to be fast before your front-end can be.)
  - sidewndr46 3y ago
    There is no mechanism for a bank customer to initiate a payment via FedNow. It simply does not exist, regardless of what Wikipedia says.
    - toomuchtodo 3y ago
      Banks provide the interface, FedNow will provide the rails. Alias support is on the roadmap, and the service is intended to support peer to peer as well as consumer payments per their documentation.
- cubefox 3y ago
  FedNow enables banks to offer near instantaneous bank transfers to their customers -- if both the banks involved in the transaction have implemented the relevant FedNow protocols. Since FedNow is relatively new, most banks probably don't support it yet.
- jccooper 3y ago
  Well, it's a service for banks that will allow them to offer their customers realtime transfers between banks. Just like ACH. I don't use ACH directly, but I do use it through my bank all the time.
zettabomb 3y ago
Very interesting! It doesn't seem to be the default yet, at least not for anything I use. Glad to hear we're making progress though, if a bit slowly and behind other nations.

sidewndr46 3y ago

FedNow is a service for banks, not for bank customers. The original post is about timelines for customers transfers

throw0101b 3y ago
Individuals too: > FedNow is an instant payment service developed by the Federal Reserve for depository institutions in the United States, which allows individuals and businesses to send and receive money.[1][2][3][4] * https://en.wikipedia.org/wiki/FedNow https://en.wikipedia.org/wiki/FedNow > The FedNow Service went live on July 20, 2023. It is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. […] At the most fundamental level, the service provides interbank clearing and settlement that enables funds to be transferred from the account of a sender to the account of a receiver in near real-time and at any time […] * https://www.federalreserve.gov/paymentsystems/fednow_about.htm https://www.federalreserve.gov/paymentsystems/fednow_about.h... > The Federal Reserve said on Monday that it would create a real-time payments system, with the goal of making paychecks and money transfers available for use more quickly. * https://www.nytimes.com/2019/08/05/business/economy/fed-real-time-payments.html https://www.nytimes.com/2019/08/05/business/economy/fed-real... (Your back-end has to be fast before your front-end can be.)
- sidewndr46 3y ago
  There is no mechanism for a bank customer to initiate a payment via FedNow. It simply does not exist, regardless of what Wikipedia says.
  - toomuchtodo 3y ago
    Banks provide the interface, FedNow will provide the rails. Alias support is on the roadmap, and the service is intended to support peer to peer as well as consumer payments per their documentation.
cubefox 3y ago
FedNow enables banks to offer near instantaneous bank transfers to their customers -- if both the banks involved in the transaction have implemented the relevant FedNow protocols. Since FedNow is relatively new, most banks probably don't support it yet.
jccooper 3y ago
Well, it's a service for banks that will allow them to offer their customers realtime transfers between banks. Just like ACH. I don't use ACH directly, but I do use it through my bank all the time.

zettabomb 3y ago

Very interesting! It doesn't seem to be the default yet, at least not for anything I use. Glad to hear we're making progress though, if a bit slowly and behind other nations.