Fed issues expected FedNow pricing approach

The Federal Reserve released its anticipated pricing approach for its FedNow instant payments service ahead of next year’s launch.

Pricing: The Fed said it expects the FedNow Service fee schedule to be published later this year with the following pricing information:

• A $25 monthly FedNow Service participation fee for each routing transit number that enrolls in the service to receive credit transfers.

• A fee of $0.045 per transaction to be paid by its sender, including returns.

• A fee of $0.01 for a request for payment message to be paid by the requestor, including both requests for a new payment or funds to be returned.

• Participating financial institutions can send RFPs through FedNow to other participating FIs to request payment of a bill, invoice, or other amount owed by the receiving FI’s customer.

• Standard fees will apply for FIs accessing the FedNow Service via FedLine Solutions.

• FedNow’s initial credit transfer transaction value limit will be a maximum of $500,000, though the default limit is set at $100,000 and FIs will be able to adjust it based on their needs.

Background: ICBA last month asked the Fed to accelerate the flow of information about FedNow to help community banks maximize participation ahead of the launch.

More: An ICBA blog post provides a breakdown of real-time and faster payments options, including FedNow, RTP, and Same Day ACH.