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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#601

Post by tick_tock_tick »

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…

Hopefully it resolves it. I don't want to live in a society where Mastercard or Visa defines if your business is "moral" enough to operate.

Then you have Obama with https://en.wikipedia.org/wiki/Operation_Choke_Point trying to circumvent the Congress and the Judiciary.

Re: FedNow Is Live

#602

Post by stanleydrew »

oorza wrote: post #548
LadyCailin wrote: post #537

Earlier quoted context omitted.

Credit card fees that aren’t passed through to you are a bit tragedy of the commons. Probably good for them to go away. It’s fine if you choose to pay them, and it’s still worth it to you, but otherwise you’re forcing everyone around you to subsidize your credit card rewards. That’s not fair.

Alternatively, everyone not taking advantage of the credit card protections isn't taking advantage of what's offered around them. Everyone should be subsidizing everyone else, because no one should be using a debit card to make direct consumer purchases in 2023. It's too fraught with risk comparatively, and even the scummiest of the sub-prime credit cards give you a grace period to not accrue interest.

This argument makes sense if you don't consider the large portion of the population for whom credit cards are unavailable.

Re: FedNow Is Live

#603

Post by [deleted] »

foobarian wrote: post #282
uses wrote: post #166

Earlier quoted context omitted.

Currently this works between banks only. Banks have reserves at the Fed, and those reserves are what gets adjusted when a FedNow transaction happens. The banks then adjust their own records on their customers' behalf.

So it's like a Bitcoin exchange, but with dollars!

[deleted]

Re: FedNow Is Live

#604

Post by kvetching »

Mistletoe wrote: post #248
lbotos wrote: post #159

Earlier quoted context omitted.

Because there are many Americans who are small gov and against excessive taxation. A CBDC is "too far" for a lot of people who believe that.

You are already starting to pigeonhole people with your stereotype. I'm as liberal as they come and I find the thought of a CBDC to be an unimaginable Orwellian nightmare. A boot stamping on the face of civil liberties and privacy forever.

Maybe if our democracy wasn't broken this wouldn't be an issue. The government is supposed to be ran by us, but it's been taken over by bureaucrat cosmopolitans & multi-national corps who have a distinct will to power.

Re: FedNow Is Live

#605

Post by rodgerd »

sjdmdlakziggy wrote: post #559
wslh wrote: post #538

Earlier quoted context omitted.

Last time, a decade ago, I played with RabbitMQ and similar open source queue system they didn't handle congestion and rate limitation well (crashed). From my little experience with classical IBM systems like MQ they knew about that stuff.

I spent a couple years deploying and integrating IBM MQ, and I own a couple of services currently that interact with it. It was (just a couple years ago) and probably still is more robust than current open source solutions, as long as you weren't planning on forking the code for some very specific use case that requires heavy modification, or the more likely situation of just wanting to save money. As far as message…

> My only complaint is that it is very expensive.

On the one hand, I guess. On the other hand, I have a pile of the WebSphere product stack in my life. The app server is ten times the cost of MQ. WPS is another ten times the cost of the app server. It looks cheap when you're buying the really expensive stuff!

Also if you're using MQ for things like guaranteed delivery and making use of clustering and security controls I suspect it's cheaper to pony up for the IBM software than it is to spend time messing about in the thickets of the free alternatives.

Re: FedNow Is Live

#606

Post by petronio »

heydenberk wrote: post #520

Powell has mentioned[0] that the Fed is unable to affect fiscal policy, which is the fastest and best solution to certain economic crises. Does this bring the Fed closer to being able to simply give people money? [0] https://rollcall.com/2020/06/16/feds-powell-urges-congress-t...

FedNow doesn't change anything other than transaction speed & cost. If your concern is the Fed giving people money directly, they've had the technical capability for a very long time.

Re: FedNow Is Live

#607

Post by rodgerd »

jowea wrote: post #589
88913527 wrote: post #441

Earlier quoted context omitted.

Couldn't having payments settle so quickly result in increased risk of overall system instability? I don't have a specific example, but I'm thinking of things like bank run panics. I'm sure this sort of thing would have been considered, however.

Good question. Did that happen in any other country with faster payments? And SVB collapsed fast before this.

Singapore has had extremely aggressive settlement (and availability!) requirements for a while now, and doesn't seem to have collapsed.

Re: FedNow Is Live

#608

Post by ashconnor »

panarky wrote: post #100

The press release lists a few big banks like Chase, Wells Fargo, BNY Mellon, US Bank and Fiserv, along with a dog's breakfast of random service providers and credit unions. Since free realtime payments presumably would still require both the sender and the receiver to use a participating financial institution, instead of all participants just transacting directly through the Fed, how is this supposed to work if most…

In the UK if a financial institution didn't support FPS it would fallback to the existing system with 3-5 days clearance.

Eventually they all got on-board and now money is sent in seconds between accounts.

It didn't replace credit cards or direct debit but it's the reason why nothing like Zelle exists in the UK.

There's also some added benefits like being able to withdraw money from Paypal pretty much instantly.

Re: FedNow Is Live

#609

Post by silisili »

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

Will this replace ACH and/or Plaid for sending money amongst my own various accounts, as well, or is it intended more as a 'payment' than a tranfer?

Re: FedNow Is Live

#610

Post by patmorgan23 »

Qworg wrote: post #391
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…

Even when offered a more competitive option, consumers love credit cards - the merchant gets soaked, while they get cash back. Given how the networks are, you'd have to have an unprecedented collusion of merchants to break the credit networks open.

Credit cards also have really good consumer protection laws around them. I have 30 days to report any fraudulent transactions and on my card and the bank MUST give me my money back.
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