Benefits &

Use FedNow Service to Send & Receive Good Funds in "Seconds"

Instant Real-time Deposits into your Existing Bank Account!

  • Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow ® Service, to support faster payments in the United States. The planned service would conduct real-time, payment-by-payment, final settlement of interbank obligations through debits and credits to banks' balances in accounts at the Reserve Banks. The service would incorporate clearing functionality, allowing banks, in the process of settling each payment, to exchange information needed to make debits and credits to the accounts of their customers. The service's functionality would support banks' (or their agents') provision of end-to-end faster payments to their customers. What are FedNow Real-Time payments: FedNow - Federal Reserve Real-time Payments
  • The Federal Reserve's FedNow Service will be the second system (see The Clearing House RTP) offering Real-Time Payment "Rail" that can reach all U.S. bank and credit union accounts and enable funds to be sent and received within seconds.

  • Now Available to you:
    • Fastest Payments
    • Final Payments
    • Good Funds Payments
    • instant Payments
    • Instant Payments
    • Just-in-Time Payments
    • Last-Minute Payments
    • Last-Second Payments
    • On-Demand Payments

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Good Funds Processing

How The FedNow Service will work

General Description of the FedNow Service

The FedNow Service would process individual payments within seconds, 24 hours a day, 7 days a week, 365 days a year. The service would be designed to support credit transfers, where a sender initiates a payment to an intended receiver for a variety of use cases, such as person-to-person payments, bill payments, and smaller-value business-to-business payments.[99] The service would settle interbank obligations through debit and credit entries to balances in banks' master accounts at the Reserve Banks. All settlement entries for transactions through the FedNow Service would be final, meaning that settlement cannot be cancelled or revoked once a transaction is processed by the service. Consistent with the goal of supporting faster payments, use of the service would require participating banks to make the funds associated with individual payments available to their end-user customers instantly after receiving notification of settlement from the service. The service would support values initially limited to $25,000.[100] The service would have the ability to process a large volume of payments rapidly, including volumes that may be unusually large at certain times of the day or days of the year.

The FedNow Service would incorporate clearing functionality with messages containing information required to complete end-to-end payments, such as account information for the sender and receiver, in addition to interbank settlement information. The service would also support the inclusion of additional descriptive information related to a payment, such as remittance or invoice information, and may further allow for nonvalue message types.[101] Payment message format would be based on the ISO 20022 standard.[102]

In its simplest form, a completed payment through the FedNow Service involving two participating banks would have the following steps.[103] To start, a sender would initiate a payment through its bank, by submitting instructions to it using an end-user interface outside the FedNow Service. After the sender's bank authenticates the sender and validates the payment, it would submit a payment message to a Reserve Bank using the FedNow Service. The FedNow Service would authenticate the sender's bank and validate the payment message, for example, by verifying that the message meets the FedNow format specifications. Before the Reserve Bank executes the payment message, the service would place a provisional hold on funds in the master account of the sender's bank and would then send an inquiry message to the receiver's bank seeking confirmation that the receiver's bank, among other things, maintains a valid account for the receiver included in the payment message received by the Reserve Bank. If the receiver's bank sends a positive response to the inquiry, the FedNow Service would execute the payment for the Reserve Banks by sending a payment message forward with an advice of credit to the receiver's bank and nearly simultaneously processing a final debits and final credit to the master accounts of the sender's bank and receiver's bank,respectively.[104] The banks are responsible for debiting and crediting their customers' accounts and providing further notification to their customers that the payment has been completed. The entire process would take place within seconds.

Features & Benefits

The Federal Reserve FedNow Real-Time payments has benefits for all parties involved in Financial Transactions.

Benefits to your company include:

  • Money Transfer: Current limit of $25,000 (2023 should see limit increase to $100,000).
  • It's Fast: 24/7/365 access to funds anytime vs. several days for paper checks or ACH transfers to process.
  • It's Final: Real Estate companies can disburse funds to their Vendors, Agents or Rebate discounts to their customers' bank accounts or mobile wallets.
  • Software Integration: Integrate your Management or Enterprise software with us.
  • Message Detail: Full 145 characters available using ISO 20022 XML format.
  • Online Down Payments: Don't use inconvenient and expensive Wires & Cashier's Checks.
  • Online Real-Time Reporting: Configured Dashboard with Virtual Terminal login.
  • Reduced calls / emails in the "Purchasing Chain": All parties to a "The Federal Reserve FedNow Real-Time payments" transaction receive text & email messaging.

  • Your Choice ~ Integrate your software system with us or, send us your API and we'll integrate Real-Time Payments with YOU!

Why use The Federal Reserve FedNow Real-Time payments?

When "Next-Day" or "Same-Day" payments are too slow or using Wires costing $25 are too expensive - think The Federal Reserve FedNow:

  • The Federal Reserve FedNow Real-Time payments are SAFE:
    It is safer than cash or checks in protecting users against fraud. The platform uses transaction limits and cross-border blocks to avert money laundering. eCheck transactions, using bank login authorization, are the most secure method of funds transfer available.
  • The Federal Reserve FedNow Real-Time payments are FREE to Receiving Party:
    Your Recipients will never be charged enrollment or transaction fees.
    The Federal Reserve FedNow Real-Time payments are FAST:
    24/7/365 access to funds anytime.
    The Federal Reserve FedNow Real-Time payments are EFFICIENT:
    The platform makes digital payments effortless and more efficient. We drive efficiencies and cost savings.
    The Federal Reserve FedNow Real-Time payments are EASY TO USE:
    It connects users across the globe all through one digital hub. Worried about Internet security? DON'T BE:
  • Fraud Protection: Identify, manage and prevent suspicious or potentially costly fraudulent transactions with our customizable, rules-based solutions.
  • After a transaction is processed, you'll even receive an e-mail with amount confirmation and receiver information. Plus, our payment platform gives you the ability to manually key-in transactions anywhere there's an Internet connection.

    More than Same-Day ACH:

    The Federal Reserve FedNow Real-Time payments doesn't share banking information between parties:
    "...consumers and businesses indicated that they would rather share an e-mail address or a phone number to make/receive payments instead of sharing their bank account numbers." Page 29, Strategies Improving US Payment System
    Credit Transfer:
    Basic multi-purpose payment message, including remittance information.
    Request for Payment:
    Support Account-to-Accoung funds request and EBPP - Electronic Bill Presentment & Payment.
    Payment Acknowledgement by Receiver:
    Message from the receiver to the sender regarding payment dispositions (e.g. invoice paid, good shipped, etc.).
    Request for Information & Response:
    Receiver request for additional information about a payment (e.g. requesting customer account number, invoice number, or purpose of payment).
    Remittance Advice:
    Extensive remittance detail not included in the Credit Transfer message.

    Sending money with The Federal Reserve FedNow Real-Time payments is:

    • Instant - funds will be received in seconds.
    • Flexible - send or receive one-time and recurring payments.
    • Easy - it's all done online or via your mobile device, no need to visit the bank.
    • Quick - takes seconds to set use once your company is approved.
    • Secure - money goes directly into the recipient's account of choice.
    • Convenient - funds can be instantly accessed and spent.
    • Inexpensive - one of the cheapest on the market as there are no costs for the receiver.

    QuickBooks Integration INCLUDED FREE!

    Good Funds QuickBooks Processing
    • Automate Agent Commission Payments (and other Account Payables)
    • Automate Account Receivable Collection
    • One-time and Recurring Debits / Credits

    QuickBooks® Integration: The Federal Reserve FedNow Real-Time payments specializes in the origination of moving money electronically. Use QuickBooks accounting software and our online virtual terminal gateway software to send and receive Good Funds transactions over the internet.

    Have Questions?

    We have fast, friendly support!.

    Our in-house experts are standing ready to help you make an informed decision to move your company's payment processing forward. Allow us to offer and create an electronic payment processing program to provide you access to your funds in an expeditious manner.

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