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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#641

Post by system2 »

asd88 wrote: post #636
galkk wrote: post #626

The announcement is very unclear. What I as layperson will get from it? Is it an app FedPayPal/Fedmo that I will be able to use for sending funds? Is it something that will be used by other apps to have cheaper funds transfer? Because if it is latter then I'm afraid that entrenched players will just keep doing what they're doing, keeping the profits but offloading processing to that system if it will be cheaper. The…

This is not a consumer-facing, social payment platform (e.g. Venmo), it is another payment rail (e.g. ACH, wires). Laypeople are not the target audience for this, payment rail users are (i.e. entities who regularly utilize ACH/wire transfers or build services on top of them).

So something like Stripe would benefit from this?

Re: FedNow Is Live

#642

Post by [deleted] »

ZoomerCretin wrote: post #516
tombert wrote: post #372

Earlier quoted context omitted.

I think KiwiFarms is a cesspool and I think Null in particular is an extremely crappy human, but despite that I disagreed with the credit card processors pulling them, because they really did have a near-monopoly for online payments, meaning that this could be considered stifling of free speech. However, I think I'll have less of an issue for it if there's the government-backed means in which to send them money; at t…

This is a dramatic whitewashing of KiwiFarms. KiwiFarms was not deplatformed for wrongthink or because people disagreed with their ideas. They were deplatformed for coordinating harassment campaigns that resulted in at least three confirmed suicides. That is not protected speech.

[deleted]

Re: FedNow Is Live

#643

Post by pas »

kelnos wrote: post #545
hitpointdrew wrote: post #224

Earlier quoted context omitted.

> I don't understand why ~FedNow and CBDC~ BIG BROTHER are such a big issue in the US. Fixed this for you. I don't really want a gigantic federal agency having insight into every financial transaction I make. Hard, fucking, pass.

Ignoring the fact that FedNow doesn't change much in this regard... I'm torn on this. Visa, MasterCard, Venmo (aka PayPal), etc. all know about large subsets of my transactions, and they go and sell my personal data to other companies in sleazy ways to cover their costs. Is that better or worse than the government knowing all this stuff? Sure, the government can also legally use force against me and deprive me of my…

don't forget SARs to FinCEN and other AML requirements

the government already knows.

Re: FedNow Is Live

#644

Post by mattsan »

aidenn0 wrote: post #590
mattsan wrote: post #550

Earlier quoted context omitted.

I had to read this twice - is it really not like in the UK? Is this the first US implementation of "Faster Payments"? Sure people in the UK sometimes use PayPal, Revolut, but most of the time its always just a friend gives (and you save on your banking app) their bank account number and sort code, and you instantly send it across. edit: with no fee

Wire transfers exist, but have a high fixed-transfer cost ($20 is not unusual). The larger banks have their own systems that only work within the bank; some smaller banks offer systems that work with any bank that offers the same system. ACH exists, and I've used it to move money between accounts I own, but there is some friction to set up. I don't know anyone who uses it for C2C payments.

Damn. We only have to pay fees to the EU after brexit (and I assume internationally too. edit: I've never transferred internationally).

Re: FedNow Is Live

#645

Post by buzer »

HoyaSaxa wrote: post #482
aidenn0 wrote: post #436

Earlier quoted context omitted.

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?

Yes, that is absolutely a use case. Similar to Venmo, there is also a Request for Payment (RFP) mechanism. I'm on the Request for Payment (RFP) Work Group that is composed of a number of financial institutions, service providers, and billers. Netflix is part of the RFP Work Group. So presumably they are interested in offering consumers the ability to pay for Netflix using FedNow instead of a credit card. Instead of N…

I hope they extend that to actual invoicing standard, i.e. pass the invoice details in that RFP message, like something similar to https://www.finanssiala.fi/en/topics/finvoice-standard/

Re: FedNow Is Live

#646

Post by currio »

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

For transfers between bank:a and bank:b do both banks have to integrate with Fednow?

Thanks!

Re: FedNow Is Live

#647

Post by mattsan »

kylehotchkiss wrote: post #562
mattsan wrote: post #550

Earlier quoted context omitted.

I had to read this twice - is it really not like in the UK? Is this the first US implementation of "Faster Payments"? Sure people in the UK sometimes use PayPal, Revolut, but most of the time its always just a friend gives (and you save on your banking app) their bank account number and sort code, and you instantly send it across. edit: with no fee

No, Wire Transfers have been the official fast settlement method in US for a while. They have a fixed fee associated but given the larger transaction amounts that people generally use it for, it's not a bad thing. Everyday consumers have their silly apps for money transfer (PayPal, Cash app, iMessage Cash). Other than that, people are just used to transactions taking 2-3 days and over drafting because they made anoth…

Ah. Faster Payments in the UK are free.

Re: FedNow Is Live

#648

Post by bauruine »

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…

A less controversal site, at least on hn, may be wikileaks https://www.forbes.com/sites/andygreenberg/2010/12/07/visa-m...

Re: FedNow Is Live

#649

Post by DANmode »

gavinsyancey wrote: post #630
rkagerer wrote: post #484

Earlier quoted context omitted.

certain design documents such as threat models aren't public That smells like security through obscurity (which admittedly is the status quo in the banking world). Contrasted to approaches like Bitcoin, for which full code and whitepaper are public, and which has managed to survive every attack vector thrown at it for the last decade and a half. Not arguing for Bitcoin as money here, just highlighting the diverse app…

Fraud detection heuristics, at least, fundamentally have to rely on security through obscurity. If fraudsters know exactly what is detected as fraud, they can avoid detection. Bitcoin gets around this by having absolutely no fraud prevention, and just saying "lol sucks for you should've been more careful"...

There is fraud prevention (yes, you being careful, and more importantly, only doing transactions with parties you trust to reverse in the event of a mistake), you've just been accustomed to outsourcing this to a third party for some expected added value.

Re: FedNow Is Live

#650

Post by phpisthebest »

landemva wrote: post #561
phpisthebest wrote: post #531

Earlier quoted context omitted.

>>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 Sorry but no... You can not be a "Private Company" and have your leadership appointed by the President like any other Government Agency The Fed is a Government Agency, >>The reason the US government has a national debt is because that debt is owed to the Fe…

The Fed is a contractor with pomp and circumstance to make it appear different. Any private group charter can require their club leader to be approved by the Pres. and the Pres. may or may not play along.

you may have an analogy if your "Any private group charter" was established by an act of Congress, where by the Appointment of the leader was required by law to be done by the president, with the advice and consent of congress

Show me "Any private group charter" that was established by such an act of congress and i will agree with you.

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