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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#941

Post by JakeAl »

pas wrote: post #643
kelnos wrote: post #545

Earlier quoted context omitted.

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.

It's not about KNOWING, it's about CONTROLLING. The concern is they can shut off your ability to make transactions if you don't cooperate with whatever their agenda is at any given moment, like what the truckers in Canada protesting vax mandates experienced.

Re: FedNow Is Live

#942

Post by [deleted] »

scarface_74 wrote: post #728
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…

I’m going to lose $30 a month in discounts with T-mobile if I don’t switch to debit card or checking account. T-mobile has a horrible history when it comes to security. I definitely don’t want to give them access to my checking account

[deleted]

Re: FedNow Is Live

#943

Post by epcoa »

ezfe wrote: post #915
scarface_74 wrote: post #728

Earlier quoted context omitted.

I’m going to lose $30 a month in discounts with T-mobile if I don’t switch to debit card or checking account. T-mobile has a horrible history when it comes to security. I definitely don’t want to give them access to my checking account

You can easily create an account just for T-Mobile and auto-deposit into it monthly.

But then they wouldn’t have anything to complain about.

Re: FedNow Is Live

#944

Post by tivert »

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'm on the Request for Payment (RFP) Work Group that is composed of a number of financial institutions, service providers, and billers.

I'm just randomly curious: do you know which Federal Reserve Bank FedNow was developed at?

Re: FedNow Is Live

#945

Post by tivert »

TylerE wrote: post #805
hunter2_ wrote: post #794

Earlier quoted context omitted.

> 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.

> Crappy usability

Speak for yourself. In my book, paper wins the usability front over apps, because apps suck and have too much personal administrative overhead.

Re: FedNow Is Live

#946

Post by MatthiasPortzel »

TylerE wrote: post #805
hunter2_ wrote: post #794

Earlier quoted context omitted.

> 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.

Checks are easy to use: just write a name and an amount on a piece of paper.

They’re secure: they can only be cashed by the person they’re made out to (unlike cash).

They have theoretically infinite throughput: you can write any amount on a single check.

They have extremely high latency, which is why digital payments are being preferred in many situations. But the remaining situations where checks are used high latency is acceptable or even desirable.

Re: FedNow Is Live

#947

Post by gtowey »

TulliusCicero wrote: post #667
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

> Is this the first US implementation of "Faster Payments"? No, there's already Zelle, which is fairly popular now, though not as ubiquitous as instant bank transfers in other countries: https://en.wikipedia.org/wiki/Zelle_(payment_service)

Zelle is crap. It was created by banks to skirt regulations which make them responsible for fraud. It exists to make things worse for their customers which is why they pushed people to use it so hard.

Re: FedNow Is Live

#948

Post by wenc »

sam345 wrote: post #920
wenc wrote: post #724

Earlier quoted context omitted.

Fidelity Investments is one of the biggest financial institutions in the country. Zelle does not support it or vice versa (not sure which way).

Fidelity is not a bank.

The cash management account is operated by UMB which is a bank. Also does Zelle only work with banks?

Re: FedNow Is Live

#949

Post by nimbleplum40 »

spiralx wrote: post #898
nimbleplum40 wrote: post #368

Earlier quoted context omitted.

Savings and debt in an economy are related, but not 1:1. See the money multiplier [1]. [1] https://en.m.wikipedia.org/wiki/Money_multiplier

Which, as the article says, is an inaccurate model of how modern monetary economies actually work. Bank loans create new money, they don't lend out existing deposits, and repayments destroy that money. Reserve requirements - in countries that have them - don't affect whether a loan can be made or not.

> Bank loans create new money, they don't lend out existing deposits

Do you mind clarifying? I agree banks create new money, but they do that by lending out existing deposits. A bank can’t lend out money that don’t have on their books…

Re: FedNow Is Live

#950

Post by nonameiguess »

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 third on their list of FAQs:

> Will there be a FedNow app for me to use?

> No. There is no FedNow app. The Federal Reserve does not provide payment services directly to consumers and businesses. Banks and credit unions can provide their customers with access to instant payments through new features on their mobile apps, banking websites, or other interfaces such as those used for business payments. Bank and credit union customers will probably not even see the name "FedNow" on their bank's instant payments platform as the FedNow Service is the high-speed highway that helps payments move from one financial institution to another. Banks and credit unions build new products for their customers that connect to the highway.

https://www.federalreserve.gov/paymentsystems/fednow_faq.htm

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