Title could include "instant payments system"
FedNow Is Live
51–60 of 1001 posts
Re: FedNow Is Live
#52Will banks be able to charge fees to their customers for using FedNow like wire transfers?
They could theoretically, but it is unlikely due to each transaction costing a few cents and the monthly FedNow fee being $25 (it is a utility run on a cost recovery basis). No banks charge for Zelle payments to my knowledge, for example. This eventually replaces checks, money orders, Zelle, Venmo, ACH, and probably credit card payment volume over time (as seen with UPI in India and PIX in Brazil). Every deposit acco…
is the fee on a per bank or per account basis?
Re: FedNow Is Live
#53My concern is that this is a trial run for an official CBDC that will eventually replace cash.
FedNow is a replacement for ACH which is an ancient, creaking monstrosity. If we can't ever replace or fix old, busted infrastructure because of conspiratorial rambling, we are fucked as a civilization.
What has government ever done for us?
Re: FedNow Is Live
#54I am very worried when the government knows/governs money transfers; look at china.
Re: FedNow Is Live
#55Earlier quoted context omitted.
I agree I'm more concerned about Silicon valley tech bros than my own government. I can vote for Parliament I can't vote for PayPal's board of directors.
PayPal doesn’t have a military and doesn’t extract taxes from you though.
PayPal might not but Apple/etc extract a 30% tax from everything you do through their stores.
Re: FedNow Is Live
#56My concern is that this is a trial run for an official CBDC that will eventually replace cash.
FedNow is a replacement for ACH which is an ancient, creaking monstrosity. If we can't ever replace or fix old, busted infrastructure because of conspiratorial rambling, we are fucked as a civilization.
I’ve seen a lot of crazy conspiracy theories reveal themselves to be true in the past five years.
Apply some critical thinking on this. Governments and corporate elites worldwide are salivating over the level of surveillance and control that a CBDC will enable.
Re: FedNow Is Live
#57Earlier quoted context omitted.
For one, unlike cash, the issuing entity can program CBDC to expire on a specific date unless utilized. Another horror use case is that they could track and limit how many hamburgers or pizzas you eat daily, weekly, monthly or yearly!
Why would the government program money to expire? Would the money not become effectively worthless the closer to the expiration date? Why would a business accept transactions from people with money that’s about to expire would that then mean they would be giving away goods and services for free potentially?
I think Japan did try this, as they really wanted people to spe d, vs save.
Re: FedNow Is Live
#58Earlier quoted context omitted.
Why would the government program money to expire? Would the money not become effectively worthless the closer to the expiration date? Why would a business accept transactions from people with money that’s about to expire would that then mean they would be giving away goods and services for free potentially?
I assume that the TTL of the money would reset once it has changed hands
If you are assuming how a hypothetical future currency will work then we could easily assume exactly the opposite and the money would be destroyed by a set date to maintain some stable rate of deflation. Do you have evidence that a time to live for a currency is being considered by the Federal Reserve and US government?
Re: FedNow Is Live
#59Earlier quoted context omitted.
PayPal doesn’t have a military and doesn’t extract taxes from you though.
PayPal might not but Apple/etc extract a 30% tax from everything you do through their stores.
Agreed. But I can choose not to use it. I don’t buy things in the App Store nor do I use pay pal.
Re: FedNow Is Live
#60Earlier quoted context omitted.
Reward schemes are funded by interchange fees funded by higher product prices. They are a tax on the entire economy. Merchants can push the CC fees to customers who opt to pay with CCs vs cheap or free instant payment systems. T-Mobile has dropped autopay discounts if you use a credit card vs deposit/bank accounts for payment, for example. Walmart wrote public comments on this topic supporting the FedNow implementati…
My Citi Custom Cash card gives me 5% back on gas station purchases (my highest category), even paying the higher price at the pump for credit cards I still come out ahead. I'm fairly certain Citi is not making 5% on interchange fees
Isn't it easier to assume Citi is recovering the 5% via interchange fees versus Citi is losing money every time a customer uses an advertised card feature.