P2P Payments Ultimate Guide to FedNow Features & Fees


Ultimate Guide to FedNow Features & Fees

Credit unions are constantly seeking innovative solutions to meet the evolving needs of their members. One solution making waves in the financial industry is the FedNow instant payment platform. Designed to revolutionize the way funds move in real-time, FedNow offers credit unions unprecedented speed, security, and convenience in facilitating transactions.

Alongside its groundbreaking features, understanding the fee structure of FedNow is important for credit unions looking to leverage this transformative technology effectively. In this blog post, we dive into the features and fees of FedNow, equipping your credit union with the knowledge needed to harness the full potential of instant payments.

Ultimate Guide to FedNow Features & Fees

What are the Essential Features of FedNow?

Transfer Limit Settings

The default transfer limit is $100,000. You credit union can raise or lower this as you see fit. The maximum transfer limit is $500,000

Transfer limits are crucial for managing fraud and ensuring compliance with regulations. Factors such as member profile, transaction purpose, and industry standards influence these limits. Your credit union can balance security and convenience to safeguard transactions and meet member needs.

Read More: Pros & Cons of FedNow

Clearing and Settlement Times

Transactions on FedNow are processed with lightning speed, with both clearing and settlement occurring within seconds. This means that once a transaction is initiated, it is final and cannot be reversed.

This process operates 24/7, 365 days a year, so transactions can be cleared and settled at any time, even outside of traditional business hours or during holidays. This instantaneous processing capability ensures that funds can be moved swiftly and efficiently, providing a seamless and convenient experience for both your credit union and its members.

Customizable Levels of Participation

Send and Receive

Financial institutions can send, receive, and return customer payments, supporting instant payment liquidity needs. This capability can be disabled as business needs change.

Financial institutions enabling the send and receive option can initiate and receive Request for Payments (RFPs) for various use cases. Customers can respond by initiating credit transfers, with additional details like invoices and hyperlinks.

Receive Only 

Financial institutions opting for 'Receive Only' participation in FedNow can send and receive payments from other institutions, return payments, and send RFPs, but cannot initiate customer payments.

Liquidity Management Transfers

FedNow allows credit transfers between institutions 24/7, including during Fedwire® Funds Service downtime. These transfers have higher limits than customer transfers and support liquidity needs in instant payments.

Financial institutions enabling customer payments will automatically support this function, which can also be selected as a standalone option.

Payment Types

FedNow has a variety of payment types to serve your members in many different payment situations. Your members do anything from pay friends and family (P2P) to pay taxes (C2G). 

Here is a List of FedNow Payment Types:

  • P2P: Person-to-Person
  • C2B: Consumer-to-Business
  • C2G: Consumer-to-Government
  • G2C: Government-to-Consumer
  • B2C: Business-to-Consumer
  • B2B: Business-to-Business
  • A2A: Account-to-Account

What are the Fees Associated with FedNow?

Understanding the fees associated with FedNow is essential for your credit union to effectively manage transaction costs and budget for regularly scheduled fees. By knowing the specific fees, your credit union can make informed decisions on how to best utilize FedNow's services.

This enables your credit union to streamline operations, optimize cost management, and provide a seamless payment experience for your members.

Customer Credit Transfer

$0.045 per item

Customer Credit Transfer Returns

$0.045 per item

Liquidity Management Transfer (LMT)

$1.00 per item

Request for Payment (RFP)

$0.01 per item

General Participation Fee

$25.00 per month


Is FedNow Right for my Credit Union?

With over 40 years of expertise in delivering cutting-edge technology and unparalleled service to credit unions, FLEX is thrilled to present a FedNow integration. By clicking the button below, you can see our integration roadmap and uncover the fast and seamless payment solution that awaits your members. 

Learn More About the FedNow Integration




Preston Packer

Written By: Preston Packer

Executive Vice President | CMO at FLEX Credit Union Technology
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