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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#751

Post by raincom »

cjalmeida wrote: post #745
TechBro8615 wrote: post #653

Earlier quoted context omitted.

What happens when it becomes so good that it's the only option? There's no need for it to be profitable, so it can inevitably undercut private sector competitors. Do you want to live in a country where the central bank controls and monitors your ability to transact with other people? Just last year, the Canadian government weaponized "debanking" in an effort to quell peaceful protests against vaccination mandates. Th…

We're not a banana republic and actually have laws governing what the central back can do, and they can't block transfers without a warrant. Any private banking solution would be subject to same kind of laws.

Banks use Bank Secrecy Act as a cover to debank people. When you complain, banks retort that you agreed to their terms and conditions. Add machine learning and/AI to this mix: debank people because their algorithms flagged them as risky. Just as c-level executives use code language to talk to their yes-men to execute unethical and/or illegal activities. Now replace yes-men and code-language, with maching learning/AI; viola, perfect way to debank without any evidence of unethical doings.

Re: FedNow Is Live

#752

Post by cubefox »

rowls66 wrote: post #714
gumby wrote: post #200

Earlier quoted context omitted.

The fed lists a number of service providers on their page. I assume they will now roll out some interfaces. Glad to see the US banking system start to catch up with the rest of the world ca mid 90s.

I believe the service providers are offering services to banks.

Walmart supported FedNow when it was in development. I'd bet they want to save those credit card fees they currently pay for people buying their groceries with them.

Re: FedNow Is Live

#753

Post by mikewarot »

tjohns wrote: post #434
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

That could very well be... I remember many a late night run to the airport to help resolve some crisis back in the 80s/90s, to keep them canceled checks flying.

Re: FedNow Is Live

#754

Post by treyd »

rvz wrote: post #99
mydriasis wrote: post #2

> Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year. Whoa. Is this as awesome as it sounds? Is this akin to government-backed Venmo, or something?

> Whoa. Is this as awesome as it sounds? No. A possible CBDC rails in the US is nothing to get excited about. Unless you want savings limits and expiry dates on your money. > Is this akin to government-backed Venmo, or something? Yes, but even worse.

> Unless you want savings limits and expiry dates on your money.

Why is this something that's not already possible under the current settlement regime and is uniquely possible and likely to happen with a CBDC?

Re: FedNow Is Live

#755

Post by refurb »

LadyCailin wrote: post #537
kelnos wrote: post #519

Earlier quoted context omitted.

> So presumably they are interested in offering consumers the ability to pay for Netflix using FedNow instead of a credit card. I do wonder how stuff like this will shake out. I will use a credit card, always, with any vendor that doesn't pass along credit card fees to the customer in some way. (Why would I choose otherwise? The credit card gives me rewards, and better fraud protection.) But more and more, I see comp…

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.

It’s no more tragedy of the commons than any other priced in offering a company does.

Don’t take advantage of “free delivery” because you buy in store? You’re paying for it anyways.

Don’t care about the ability to return for full refund because you changed your mind? You’re paying for it anyways.

Don’t care about the ability to link your washer to your Wi-Fi and use an app to see if your laundry is done? You’re paying for it anyways.

Re: FedNow Is Live

#756

Post by elyobo »

paradaux wrote: post #577
oorza wrote: post #548

Earlier quoted context omitted.

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.

No one? That's a rather brash statement to make. Here in Ireland I can count on zero hands how many people use credit cards on a day to day basis. Debit cards are the norm in much of the EU I would assume.

Credit cards are pretty common here in AU; I don't care so much about the fraud protection, but up to 55 day interest free periods are common (if the bill is paid in full each month) and so the cards literally save me money because I earn interest on savings and/or don't pay interest on mortgage vs having to pay everything immediately.

Rewards on top are an added bonus.

Re: FedNow Is Live

#757

Post by elyobo »

rowls66 wrote: post #696
cj wrote: post #555

Earlier quoted context omitted.

I can think of 0 occasions where I’ve given anyone my bank account info who isn’t a commercial organization (employer, electric company, etc). I had no idea it was the opposite in the UK. Edit: with the exception of writing physical checks, of course. I use those when the receiver doesn’t accept Venmo or Apple Pay.

When you give someone a physical check, you are giving them your bank account info. It is written on the bottom of every check.

People outside the US stopped using cheques ~decades ago. At 40+ from New Zealand I've literally never paid anyone with one and have been paid with them only a handful of times.

Re: FedNow Is Live

#758

Post by jojobas »

failuser wrote: post #660
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…

[flagged]

Because they commit a crime of... what exactly again? They never crossed even a civil liability threshold, it's strictly a gossip site with multiple reminders never to contact gossip targets.

Re: FedNow Is Live

#759

Post by cubefox »

figassis wrote: post #259
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…

This is usually never the way it happens. The government does not make market ending decisions on a whim. It would have already met with the biggest stakeholders and fedNow is likely the result of many considerations and compromises. Visa will likely not be threatened any time soon.

Yeah. Unlike UPI in India, FedNow is not mandatory for anyone. But companies could still offer "discounts" to customers when they use FedNow, as they save on credit card fees.

Re: FedNow Is Live

#760

Post by refurb »

matchbok wrote: post #719
mighmi wrote: post #698

Earlier quoted context omitted.

The US already has Zelle which does this. However the roll out was botched, many banks don't seem to use it and most people (including me until a few months ago) thought it was a paypal competitor - but it's actually a government based system system which renders free transfers between bank accounts (your own or others) with a cap of 3 or 5k/month. The interface is very weird. Many people can't figure out how to use…

Zelle is most certainly not a government service.

Neither is Interac in Canada.
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