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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#431

Post by ericjmorey »

JumpCrisscross wrote: post #106
no_wizard wrote: post #96

Is there going to be a universal SDK / API we can use with this? This would cut alot of middle companies out of the payments industry (or at least put pressure on lowering fees). That would be a huge win. Wish we could do the same for the credit card companies. Would be great if the Federal Government could intervene in some way to have Visa / Mastercard / American Express / Discover use the same API interface for pa…

> Is there going to be a universal SDK / API we can use with this? There is probably a neobank opportunity in providing this. FedNow is, reasonably, administered by banks. (The Fed doesn't want to provide end-user customer service nor incur liability for fraud.)

The Fed is not allowed to compete with member banks. That's part of the reason why something like FedNow took so long to emerge.

Re: FedNow Is Live

#432

Post by [deleted] »

ericpauley wrote: post #355
HoyaSaxa wrote: post #327

Earlier quoted context omitted.

Not trying to side-step the question, but The FedNow Service Technical Overview and Planning Guide[1] goes into depth on what is not under NDA. [1] https://explore.fednow.org/resources/technical-overview-guid...

I'm no expert on this so this is pure speculation, but what immediately jumps out from this document is the amount of security- and availability-critical work that depends on each member bank. With wire transfers this has historically been achieved by gating transfers behind physically visiting a branch (not universally true). The synchronous nature (recipient must confirm transaction in real-time) of transfers may a…

[deleted]

Re: FedNow Is Live

#433

Post by ke88y »

CobrastanJorji wrote: post #429
HoyaSaxa wrote: post #327

Earlier quoted context omitted.

Not trying to side-step the question, but The FedNow Service Technical Overview and Planning Guide[1] goes into depth on what is not under NDA. [1] https://explore.fednow.org/resources/technical-overview-guid...

Why would any of it be under an NDA?

At the very least, one would hope that credentials and perhaps also certain design documents such as threat models aren't public.

There may also be implementation details or code which are subject to NDA, either from the Fed itself or from service providers such as IBM in this case. Sometimes you can get that info from a FOIA request, but that doesn't negate the fact that the employees working on the system are bound by an NDA. The FOIA has to happen and run its course.

Re: FedNow Is Live

#434

Post by tjohns »

mikewarot wrote: post #423

Does this eliminate the late night flights of Mitsubishi MU2 turboprop cargo planes delivering canceled checks for the Federal Reserve?

I thought Check 21 (enacted back in 2003) was supposed to eliminate that, allowing digital check images to substitute for physical copies during the clearing process. My understanding was banks (or even sometimes merchants) just scan in the paper checks on receipt these days and process everything electronically.

https://en.wikipedia.org/wiki/Check_21_Act

Re: FedNow Is Live

#436

Post by aidenn0 »

HoyaSaxa wrote: post #298

For those curious, it is really using IBM MQ[1] under the hood and uses a bespoke flavor of the ISO 20022 specification. The FedNow Service itself is the tip of the iceberg in terms of what actually happens from an end-to-end perspective. We've been working to become a Certified Service Provider so feel free to ask me anything. I'm happy to share anything that is not under NDA. [1] https://www.ibm.com/products/mq

Is the eventual end-game that I can send money from my account at Bank A, to a friend's account at Bank B to split a check at dinner without using a third party like Venmo?

Re: FedNow Is Live

#437

Post by konschubert »

It is crazy how much credit card companies get paid just for making sure that money goes from A to B.

Yes, they also offer fraud protection and chargeback, but in 90% of purchases, I don't need those. I have other means of establishing trust and recourse, and I just want to send money, instantly.

Paying $200 on the internet should cost $0.01, not $10.00.

I think there is tremendous opportunity in unbundling payment and fraud protection.

Re: FedNow Is Live

#438

Post by mfer »

CobrastanJorji wrote: post #429
HoyaSaxa wrote: post #327

Earlier quoted context omitted.

Not trying to side-step the question, but The FedNow Service Technical Overview and Planning Guide[1] goes into depth on what is not under NDA. [1] https://explore.fednow.org/resources/technical-overview-guid...

Why would any of it be under an NDA?

Security is one good reason.

Fraud and people trying to mess with the system has been a long term problem and likely always will be. The results of which can hurt people. Keeping details private can make it more difficult for those folks.

If we try to prioritize goals of a system like this... security for people should be one of the highest. I think of the middle income single parent when I envision an example of a person in this system.

Re: FedNow Is Live

#439

Post by 634636346 »

cempaka wrote: post #425
634636346 wrote: post #340

It will be interesting to see how this affects "toxic," deplatformed, and to some degree debanked (at least from PayPal and CC processors) entities, like the KiwiFarms. While this page is somewhat vague about the private/public status of the Fed: https://www.federalreserve.gov/faqs/about_14986.htm it seems pretty well established that federally chartered corporations, like the USPS and Amtrak (e.g., https://en.wikipe…

Isn't it the case that you still have to have a relationship with a bank to have an account to transfer into or out of via FedNow in the first place? In that case I don't think this would change the picture at all. It's not the intention to help the unbanked pariahs, that's for sure.

There are still almost 5k banks in the US. Unlike Zelle, if this opens to all of them, all you need is one bank.

Re: FedNow Is Live

#440

Post by aidenn0 »

prometheus76 wrote: post #383
634636346 wrote: post #340

It will be interesting to see how this affects "toxic," deplatformed, and to some degree debanked (at least from PayPal and CC processors) entities, like the KiwiFarms. While this page is somewhat vague about the private/public status of the Fed: https://www.federalreserve.gov/faqs/about_14986.htm it seems pretty well established that federally chartered corporations, like the USPS and Amtrak (e.g., https://en.wikipe…

The Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term. There is no term limitation for this office. The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy.

Did the Fed own significant treasuries prior to QE?
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