Who built this? Dev was obviously contracted out.
internally built.
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FedNow Is Live
871–880 of 1001 posts
Re: FedNow Is Live
#872Earlier 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…
Australia's "PayID" system gets around this by allowing you to pay to a mobile phone number or email address (generally findable via your phone's contacts). The implementation is a little clunky, but an additional benefit is that it's a bit like DNS for your payments - you can associated those details with different bank account to redirect payments if you move.
Re: FedNow Is Live
#873Earlier 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…
I moved to Europe in 2018. The banking system is decades more advanced than the US. At least where I am, no restaurant will “split a check” and one person is expected to pay. We settle the bill between each other in a matter of seconds. Most bills are paid using this exact system. Credit cards are very rarely used except in-person. Since you have to accept (or tell your bank to always accept certain vendors) debits u…
Inability to "split a cheque" is still a very annoying limitation; completely normal behaviour to do this in NZ, still moderately weird in Australia (although it's got better).
The ability to resolve this electronically rather than with cash makes it less bad, but still easier and faster to resolve it in store.
Re: FedNow Is Live
#874Earlier quoted context omitted.
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.
UPI is not mandatory in India, don't know where and why such a message circulates. If I am benefitting with Credit Cards at petrol pumps, I deliberately use it and there's no concern from anybody. Merchants prefer UPI (for now) because money goes to their bank account without any cost. And cash still works at most places where UPI does.
Companies with large turnovers (above Rs 50 crore - 6$ million) are mandated to have a route to accept digital payments
https://incometaxindia.gov.in/communications/circular/circul...
Besides this, stakeholders/partners of the NPCI are mandated to offer UPI services. I'm not sure if signing up was optional, but it would honestly be suicidal for a bank not to, given that there are so many competitors offering the same.
Re: FedNow Is Live
#875For 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?
That's how it works in the EU.
Re: FedNow Is Live
#876Earlier quoted context omitted.
this is an odd consensus because you just described how all bitcoin exchanges in the US operate. they are centralized in which funds can be seized, censored, and they all have money services licenses just like their corresponding banks do. right, not like bitcoin, like bitcoin exchanges , just like the person said and you somehow ignored. far more similarities than differences for this comment and the other comments…
There are decentralized exchanges which operate in the US.
How does a US resident get US dollars out of a decentralized exchange?
Re: FedNow Is Live
#877Will services like ACH will be unnecessary eventually then?
Re: FedNow Is Live
#878For 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 people who want to get a rough idea of what ISO 20022 is and how it looks like, I wrote a brief article about it from an end-user point of view: https://evrim.zone/blog/knowledge/iso_20022_pain_001
I think that it's a pretty handy format to be familiar with, and is quite simple to work with too.
If the Fed or participating banks decide to open up the system like European banks have done so, it can be handy to get familiar with it for us financial hackers out there!
Re: FedNow Is Live
#879Is 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.
> consumers love credit cards - the merchant gets soaked, while they get cash back
It's never the merchant that gets hosed. It's the people not using credit cards.
Because, of course, the merchant just takes his banking expenses and forwards them right back to all customers by increasing prices across the board.
And it's not only the people not using credit cards that get hosed. Even the people with credit cards lose out - because the cash back is practically always smaller than the fee the merchant payed and forwarded to the customer.
As always, the real winner is only the bank. There's a reason for the market cap of MasterCard and Visa...
Re: FedNow Is Live
#880Earlier 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.
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