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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#801

Post by [deleted] »

kelnos wrote: post #532
yieldcrv wrote: post #466

Earlier quoted context omitted.

Aside from playing devil’s advocate, do you have a sensible reason why it should be this way versus another way?

I would assume such a system is capable of facilitating fraud, so it's probably good to have some kind of financial hurdle you have to jump in order to use it? Not that having $25k or $50k is a guarantee that you aren't a fraudster, but I imagine there are a lot of would-be fraudsters who don't have that kind of cash on hand. I do think this is a bit of a weak justification, though.

[deleted]

Re: FedNow Is Live

#802

Post by aussieguy1234 »

rcaught wrote: post #779
aussieguy1234 wrote: post #739

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…

You have to remember that the instant payment also stops the scam of "it will be in your account in a couple of days". You can see right there and then that the payment went through.

One scam blocked, another enabled. Of course scammers will update their strategy to take advantage either way.

Re: FedNow Is Live

#803

Post by raverbashing »

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.

Cool, now follow this logic and do health insurance right

The failure in your logic is that different credit cards do have different fees and that some form of consumer protection should apply to debit cards as well

Re: FedNow Is Live

#804

Post by TylerE »

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…

That sounds odd.

I can't imagine netflix giving up the stickiness of automatic recurring billing to say <2% of the transaction cost.

Re: FedNow Is Live

#805

Post by TylerE »

hunter2_ wrote: post #794
pjg wrote: post #789

Earlier quoted context omitted.

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?

Seems to me a big part of why something like this should exist is so personal checks can just die, as they should have years ago.

Crappy usability, no security, abysmal throughput and latency.

Re: FedNow Is Live

#808

Post by kome »

aidenn0 wrote: post #436
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

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?

wow americans can't do that already????

Re: FedNow Is Live

#810

Post by ValentineC »

mighmi wrote: post #698
monkeywork wrote: post #679

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…

> 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.

Zelle is run by Early Warning Services [1], a joint venture between Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.

It's most definitely not "government-based".

[1] https://en.wikipedia.org/wiki/Zelle_(payment_service)

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