CHICAGO--(BUSINESS WIRE)--The Federal Reserve today announced the anticipated pricing approach for its FedNow Service for instant payments.
“We are providing broad information about our pricing approach well in advance of our 2023 launch to support financial institutions and their service providers as they plan for implementation of the FedNow Service,” said Ken Montgomery, Federal Reserve Bank of Boston interim president, chief executive officer and FedNow program executive. “Industry input will continue to help us respond to instant payment needs, further frame out our pricing approach and move toward service launch.”
The 2023 FedNow Service fee schedule to be published later in 2022 is currently expected to include the following fees and other pricing information:
- A $25 monthly FedNow Service participation fee for each routing transit number (RTN) that enrolls in the service to receive credit transfers.
- A fee of $0.045 per credit transfer to be paid by its sender, including returns.
- A fee of $0.01 for a request for payment (RFP) message to be paid by the requestor, including both requests for a new payment or funds to be returned. A participating financial institution can send an RFP through the FedNow Service to another participating financial institution to request payment of a bill, invoice or other amount owed by the receiving financial institution’s customer.
The planned FedNow Service’s credit transfer transaction value limit will be $500,000. However, participants will have a default limit of $100,000, with the option to adjust it up or down. The Federal Reserve will evaluate the credit transfer limit on an ongoing basis and adjust as appropriate.
“Insights from our financial institution customers and pilot program participants continue to help us define FedNow Service pricing and transfer limits to achieve our goal of an accessible, competitive service that supports a wide array of use cases and innovation,” said Montgomery.
About the FedNow Service
The Federal Reserve Banks are developing the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions – regardless of size or geographic location – around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access will be provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents. For more information, visit FedNow.org.
“FedNow” is a service mark of the Federal Reserve Banks. A list of marks related to financial services products that are offered to financial institutions by the Federal Reserve Banks is available at FRBservices.org.