Live data from Hacker News

FedNow Is Live

federalreserve.gov

791–800 of 1001 posts

Re: FedNow Is Live

#791
post #757

Earlier quoted context omitted.

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.

Oddly, given the context of this thread, the UK is an exception. Or at least it was until a few years ago (I left in 2019). They have Faster Payments, but they also still use (used?) cheques more often than any other non-US country I've interacted with. For example, a number of UK universities still do (or until recently did?) expense reimbursements in the form of paper cheques, when reimbursing people not employed by the institution. One university even mailed a paper cheque, made out in British pounds and drawn on a UK bank, to our French invited speaker! The speaker found it inconvenient/expensive to have to deal with that, but their bank was fortunately able to figure out how to deposit it.

Re: FedNow Is Live

#792
post #698

Earlier quoted context omitted.

It sounds very much like some of the Interac services that we have here in Canada (and have had for ages). We can do what is called "email money transfer" where as long as I know your email address I can go into my bank app, transfer money to you and it will automatically show up in your bank account.

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 has many limitations:

1) The recipient needs to download the app and sign up. How does the Payor know whether the recipient has Zelle app or not

2) Even with the app, there are only about 50-100 banks that allow Zelle transfers. If someone's bank does not offer Zelle they are directed to enter their Debit Card number using "Push to Card" to receive the funds. While the funds land up in the bank account instantly either way, some Debit Cards have limitations and will not be enabled to receive funds

3) Zelle is essentially a "messaging layer" i.e. the actual settlement happens overnight using ACH rails. As a result the sending as well as the receiving bank are taking some risk in terms of allow the recipient to withdraw money when the underlying settlement hasn't happened. If the settlement fails the receiver's bank will need to claw bank the money from the receiver As a result there are some really low limits on daily transfers i.e. between 1-2K/day for most banks

4) Above all Zelle (like most other payment rails ) is a push system i.e. one can push money using Zelle. One may not pull money using Zelle

Re: FedNow Is Live

#793

We've had something similar (OSKO/PayID) in Australia for a couple of years now. In our case it wasn't the government, but the private banks getting together to launch it themselves. Unfortunately its a big target for scammers. Once the cash is instantly transferred, there is little to no chance of getting it back. There are no chargebacks like with credit cards and the instant nature of it means payments can't be re…

zelle is the same thing in the US been around for years ran by banks with lots of scamming going around.

Re: FedNow Is Live

#794
post #789
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…

RFP i.e. Request for Payment is not part of this release. Furthermore there is no ETA from the Fed as to the release date for RFP. Currently FedNow is simply a push payment system i.e. bank account holder may be able to use FedNow to push money out from their bank account to someone else's bank account. The limitation here is the bank account holder must know the account number of the recipient. This is a huge limite…

> most people don't want to share their bank account numbers

While far less common these days, people gave this information to arbitrary payees (via personal checks) for decades. The idea that it's not to be given to payers, despite it having been given to arbitrary payees, seems misguided. If someone tries to commit fraud with that number, they're probably going to get caught, making it sufficiently unlikely, no?

Re: FedNow Is Live

#795

Earlier quoted context omitted.

Not necessarily. In Germany we have "GiroPay", which literarily redirects you to a prefilled form in your online banking website. You have to choose your bank, enter your PIN, and click "okay". It's basically the same complexity as PayPal. (It's not hugely popular currently because it's fairly new and credit based services like PayPal have a headstart.)

But GiroPay is a product built on whatever payment rail is in use in Germany. In the same vein you need "FedPay" to make this as easy for the consumers. FedNow by itself won't really cut it.

Sure, but the overhead is pretty minimal.

Re: FedNow Is Live

#796
post #746
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…

You’re heavily limited in terms of transfers also. I need to split my rent over several payments over several days using zelle. It really sucks compared to something like SEPA

This depends entirely on the bank. Chase, for example, has a Zelle outgoing transfer limit of $2k/day and $16k/month for regular consumer accounts. There's a higher limit of $5k/day and $40k/month for their higher-end and business checking accounts. Other banks' limits are higher or lower than that.

Re: FedNow Is Live

#797
post #789
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…

RFP i.e. Request for Payment is not part of this release. Furthermore there is no ETA from the Fed as to the release date for RFP. Currently FedNow is simply a push payment system i.e. bank account holder may be able to use FedNow to push money out from their bank account to someone else's bank account. The limitation here is the bank account holder must know the account number of the recipient. This is a huge limite…

[deleted]

Re: FedNow Is Live

#798

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?

[deleted]

Re: FedNow Is Live

#799

Earlier quoted context omitted.

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.

Thankfully, the site is no longer available via clearweb, so we can just take its characterization by its harshest critics at face value, rather than having to actually read it ourselves and make up our own minds. However, I do find it strange that the site now only being available through Tor--and thus not showing up in Google search results or being easily browsable by "normies"--seems to have been enough to assuag…

Well wait, maybe they gave up the deplatforming effort largely because it’s not as easy to deplatform an onion site as it is to harass web hosts on Twitter.

Also, wasn’t a big complaint with KF their doxxing? Even if I didn’t do any bad or illegal things, I don’t really want a bunch of trolls knowing my address.

Re: FedNow Is Live

#800

> 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?

So, almost like SEPA, but not as good, as not all banks are in it? I can type anyone's IBAN* into my banking app and transfer them money pretty much instantly. However, ours will have a delay outside banking hours, which is annoying. Sounds like FedNow is always instant, which is a definite improvement. * Any IBAN from a SEPA country, at least.

"Normal" SEPA isn't instant either. You need SEPA Instant Payments for that and many banks don't support that yet although an EU directive is supposed to make it mandatory to at least be able to receive them, I think.
Post reply on HN