Tutorial: FedNow

FedNow Overview

The FedNow Service provides an interbank fast payment system. Interbank systems enable payers to pay much wider groups of payees, even those who have an account with a different financial institution. Payments are routed and settled among the various participating financial institutions through a common network. In addition, because it immediately clears and settles payments simultaneously, transaction by transaction, the FedNow Service is an interbank, 24x7x365 instant payments solution.

FedNow Process

Prerequisite: Check the Directory

Before getting started, you want to make sure that the financial institution you plan to send funds to accepts FedNow transfers.

Returns a list of instant payment-related services that are supported by a particular financial institution. If the bank supports both TCH and FedNow instant payments, the call returns service codes for each network.

Step 1:Create the FedNow Request

An instant payment credit transfer sends funds from your account to the recipient account in real time. A credit transfer can be sent from a master account, a deposit account (DDA), or an associated subledger. You will at a minimum need the following attributes:

• Debtor ODFI Account Number
• Transfer Amount
• Creditor RDFI Routing Number
• Creditor Account Number
• Creditor Name

Step 2: Store the Response

The response message from the FedNow request will include whether it is successful or not along with other status codes.