The Federal Reserve announced the anticipated pricing approach for its FedNow Service for instant payments.
Latest Fintech Insights: Biz2x Powered “Made In India” Middleware Platform “Maadhyam” Launched For Lenders And Aggregators
The Federal Reserve has announced the anticipated pricing approach for its FedNow Service for instant payments to support financial institutions and their service providers and they plan to implement the FedNow Service.
“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.”
Browse The Complete News About Fintech : Fiserv Named to 2022 Bloomberg Gender-Equality Index
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.
Read More About Fintech News : Hazel Announces Definitive Merger Agreements with Even and ONE to Build a Business
[To share your insights with us, please write to sghosh@martechseries.com]
