FedNow® Service will raise transaction limit to $10 million to meet increased demand, unlocking higher-value use cases

CHICAGO--(BUSINESS WIRE)--Federal Reserve Financial Services (FRFS) will increase the FedNow Service network transaction limit from $1 million to $10 million in response to growing commercial demand, effective November 2025. The increased limit will enable financial institutions and businesses to support higher-value use cases and reflects an increasing need for speed and certainty in the modern payments ecosystem.

“Our second transaction limit increase this year reflects the growing demand for instant payments — as the benefits of immediate funds availability for all types of payments become more apparent, financial institutions need flexibility to serve customers and support internal processes,” said Mark Gould, chief payments executive for Federal Reserve Financial Services. “The FedNow Service is shaping how we move money, and the service will continue to be flexible to meet evolving feedback and increasing demand.”

The increased network transaction limit for customer credit transfers positions the FedNow Service to support additional high-value use cases such as:

• Corporate treasury: Instant transfers between internal business accounts can maximize investment of excess cash, free working capital and streamline reconciliation with data-rich ISO® 20022 messaging.
• Corporate payroll: Transferring funds between internal accounts at an organization or between an organization and its payroll processor can enable faster funding, negate the need to prefund payroll accounts and eliminate reliance on less efficient payment options, such as checks.
• Vendor payments: Using instant payments to pay suppliers for inventory or services can benefit businesses by improving cash flow management, enhancing operational efficiency and optimizing liquidity management.
• Real estate transactions: Immediate clearing and settlement of high-dollar commercial real estate payments, such as escrow account funding and contractor payments, can provide certainty of funds, allow after-hour and weekend payments, and improve transparency during the process.

Financial institutions will continue to have flexibility to set lower transaction limits based on internal risk parameters and business needs. Recently introduced risk mitigation tools like account activity thresholds also provide participants with greater control and confidence as they expand their instant payment offerings.

The FedNow Service currently has more than 1,400 participating organizations across all 50 states. As adoption of instant payments accelerates, the ability to move larger dollar amounts instantly is expected to help modernize payments for financial institutions and businesses across the U.S.

About the FedNow Service

The Federal Reserve Banks developed 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 can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve’s FedLine® network, which serves more than 9,000 financial institutions directly or through their agents. For more information, visit FedNowExplorer.org (Off-site).