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FedNow: What is it and how it works

A new instant payment system for banks that may rival your favorite money transfer app.

FedNow launched July 20th, 2023. It allows businesses and individuals to send instant payments nationwide and in near-real time — any time or day of the year. Normally, bank account transfers can take a few hours or even days to complete, but FedNow hopes to give financial institutions a leg-up by advertising a delivery speed of literally seconds.

What is FedNow?

FedNow is a payment infrastructure developed by the Federal Reserve, which allows participating bank customers to send and receive money across the US in seconds.

But the only way to access it is if the financial institution or service provider you use signs up for this paid service, which will cost them $25 a month per routing number enrolled. Once signed up, financial institutions can offer their customers “full access to funds immediately, allowing for greater financial flexibility when making time-sensitive payments,” according to the Federal Reserve.

How it works

For customers of banks participating in the FedNow service, it’s a pretty straightforward process and similar to other instant transfer payment services. FedNow integrates with your bank’s mobile app or online portal, allowing you to instantly request to send a payment and have the funds delivered to the recipient instantly. This can be especially useful if you’re trying to quickly transfer funds to your friend or for time-sensitive things, such as car or credit card payments.

FedNow details and costs

Delivery speedInstant, within seconds
Transaction limitsDefault limit of $100,000, which financial institutions can increase or decrease, with the maximum set to $500,000
Domestic or internationalDomestic only
Fees$0.045 fee per credit transfer paid by the sender

These limits were released in early 2022, and the Federal Reserve states these may be adjusted throughout testing and launch stages as needed.

What banks use FedNow?

We’re in the first stages of the launch, so FedNow has baseline functionality, which includes account-to-account (A2A) transfers and bill payments. Early adopters include many financial institutions and the US Treasury. Of the 26 early adopters, a few include:

  • Corporate America Credit Union
  • Global Innovations Bank
  • JPMorgan Chase
  • U.S. Bank
  • Wells Fargo Bank, N.A.

All 400 FedNow participating financial institutions

Organization NameCityState

1st Bank YumaYumaArizona
1st Source BankSouth BendIndiana
Addition Financial Credit UnionLake MaryFlorida
AdyenSan FranciscoCalifornia
Affinity Bank, National AssociationCovingtonGeorgia
American National BankOmahaNebraska
Americana Community BankSleepy EyeMinnesota
Arbor BankNebraska CityNebraska
Arcadian BankAlbert LeaMinnesota
Asian BankPhiladelphiaPennsylvania
Auburn Banking CompanyAuburnKentucky
Auburn Savings BankAuburnMaine
AVB BankBroken ArrowOklahoma
Avidia BankHudsonMassachusetts
BancFirstOklahoma CityOklahoma
Bangor Savings BankBangorMaine
Bank Five NineOconomowocWisconsin
Bank IndependentSheffieldAlabama
Bank IrvineIrvineCalifornia
Bank of BellevilleBellevilleIllinois
Bank of BurlingtonSouth BurlingtonVermont
Bank of Edmonson CountyBrownsvilleKentucky
Bank of Estes ParkEstes ParkColorado
Bank of Franklin CountyWashingtonMissouri
Bank of HillsboroHillsboroIllinois
Bank of IberiaIberiaMissouri
Bank of JamestownJamestownKentucky
Bank of North DakotaBismarckNorth Dakota
Bank of OdessaOdessaMissouri
Bank of RantoulRantoulIllinois
Bank of TescottTescottKansas
Bank of the JamesLynchburgVirginia
Bank of YorkYorkSouth Carolina
BankCDACoeur d’AleneIdaho
BCBankPhilippiWest Virginia
Beacon Credit UnionLynchburgVirginia
BNY MellonNew YorkNew York
Branson BankBransonMissouri
Bridge Community BankMechanicsvilleIowa
Bryant BankBirminghamAlabama
BTC BankBethanyMissouri
Buffalo Federal BankBuffaloWyoming
California Coast Credit UnionSan DiegoCalifornia
California International Bank, N.A.WestminsterCalifornia
CAMPUS USA Credit UnionGainesvilleFlorida
Cape Cod 5HyannisMassachusetts
Capitol Credit UnionAustinTexas
Carter Bank & TrustMartinsvilleVirginia
Carver Federal Savings BankNew YorkNew York
Casey State BankCaseyIllinois
CB&S BankRussellvilleAlabama
CBBC BankMaryvilleTennessee
CBI Bank & TrustMuscatineIowa
CBW BankWeirKansas
Central National BankJunction CityKansas
Century Bank of KentuckyLawrenceburgKentucky
Chesapeake BankKilmarnockVirginia
Citadel Federal Credit UnionExtonPennsylvania
Citizens Alliance BankClara CityMinnesota
Citizens BankMooresvilleIndiana
Citizens Bank & TrustGuntersvilleAlabama
Citizens Bank of EdmondEdmondOklahoma
Citizens Bank of Las CrucesLas CrucesNew Mexico
Citizens Bank of West VirginiaElkinsWest Virginia
Citizens First BankClintonIowa
Citizens Guaranty BankIrvineKentucky
Citizens National BankSeviervilleTennessee
Citizens National Bank of CheboyganCheboyganMichigan
Citizens Savings Bank and Trust CompanyNashvilleTennessee
Citizens State BankNew CastleIndiana
Citizens State Bank of La CrosseClaytonWisconsin
City BankLubbockTexas
City National BankCharlestonWest Virginia
Claremont Savings BankClaremontNew Hampshire
CLB The Community BankJonesvilleLouisiana
Clearview Federal Credit UnionMoon TownshipPennsylvania
Clinton BankClintonKentucky
CNB BankCarlsbadNew Mexico
CNB Bank & Trust, N.A.CarlinvilleIllinois
Coconino FCUFlagstaffArizona
Colfax Banking CompanyColfaxLouisiana
Commencement BankTacomaWashington
Commonwealth Credit UnionFrankfortKentucky
Community Bank of MississippiForestMississippi
Community Bank of the BayOaklandCalifornia
Community Bank of the SouthMerritt IslandFlorida
Community Financial Services BankBentonKentucky
Community First BankMenahgaMinnesota
Community First BankBoscobelWisconsin
Community First Bank of IndianaKokomoIndiana
Community First Bank of the HeartlandMount VernonIllinois
Community Spirit BankRed BayAlabama
Community Unity BankBirminghamMichigan
Community Valley BankEl CentroCalifornia
Consumers Cooperative Credit UnionGurneeIllinois
Consumers National BankMinervaOhio
Conway BankConway SpringsKansas
Cornerstone National Bank & Trust CompanyPalatineIllinois
Corporate America Credit UnionIrondaleAlabama
Corporate One Federal Credit UnionColumbusOhio
Crane Credit UnionOdonIndiana
Cross Keys BankSt. JosephLouisiana
Cross River BankTeaneckNew Jersey
Crossroads BankEffinghamIllinois
CSE Federal Credit UnionSulphurLouisiana
Cumberland Security BankEubankKentucky
Cypress Bank & TrustMelbourneFlorida
Dean BankFranklinMassachusetts
Decatur County BankDecaturvilleTennessee
Dedicated Community BankDarlingtonSouth Carolina
Denison State BankHoltonKansas
Elevations Credit UnionBoulderColorado
Empire State BankNewburghNew York
Enterprise BankAllison ParkPennsylvania
Evergreen National BankEvergreenColorado
F&C BankHoldenMissouri
Fairfield National BankFairfieldIllinois
Farmers & Merchants BankBoswellIndiana
Farmers & Merchants BankSaint ClairMissouri
Farmers & Merchants State BankBushnellIlllinois
Farmers Trust & Savings BankMagnoliaArkansas
Farmers Bank & Trust CompanyMarionKentucky
Farmers National BankLebanonKentucky
Farmers State BankGalvaKansas
Farmers State Bank of Alto PassHarrisburgIllinois
Farmers State Bank of CalhanCalhanColorado
Farmers Trust & Savings BankBuffalo CenterIowa
Farmers Trust & Savings BankSpencerIowa
FBT BankFordyceArkansas
FCN Bank NABrookvilleIndiana
FCNB BankSteelvilleMissouri
FFB BankFresnoCalifornia
First & Farmers National Bank, Inc.SomersetKentucky
First BankClewistonFlorida
First BankCarmiIllinois
First BankWeatherfordTexas
First Business BankMadisonWisconsin
First Citizens State BankWhitewaterWisconsin
First Community BankBluefieldVirginia
First Community Credit UnionCoquilleOregon
First Federal BankTuscaloosaAlabama
First Federal Bank & TrustSheridanWyoming
First Fidelity BankOklahoma CityOklahoma
First Financial BankAbileneTexas
First Internet Bank of IndianaIndianapolisIndiana
First Kentucky BankMayfieldKentucky
First National BankDamariscottaMaine
First National Bank & TrustOkmulgeeOklahoma
First National Bank at St. JamesSt. JamesMinnesota
First National Bank ColoradoLas AnimasColorado
First National Bank NorthWalkerMinnesota
First National Bank of BrooksvilleBrooksvilleKentucky
First National Bank of HerefordHerefordTexas
First National Bank of KentuckyCarrolltonKentucky
First Pioneers FCULafayetteLouisiana
First PREMIER BankSioux FallsSouth Dakota
First Seacoast BankDoverNew Hampshire
First Security Trust and Savings BankElmwood ParkIllinois
First Southern National BankStanfordKentucky
First State BankBuxtonNorth Dakota
First State BankBen WheelerTexas
First State BankGrahamTexas
First State Bank & Trust Company, Inc.CaruthersvilleMissouri
First State Bank NebraskaLincolnNebraska
First State Bank of Beecher CityBeecher CityIllinois
First State Bank of DongolaDongolaIllinois
First State Bank of PorterPorterIndiana
First State Bank of the Florida KeysKey WestFlorida
First State Bank of WyomingWyomingMinnesota
First United Bank and Trust CompanyMadisonvilleKentucky
First Western Bank & TrustMinotNorth Dakota
Fisher National BankFisherIllinois
Five Points Bank of HastingsHastingsNebraska
Five Star BankRosevilleCalifornia
Five Star Credit UnionDothanAlabama
Flagship BankOldsmarFlorida
Flatwater BankGothenburgNebraska
Flint Community BankAlbanyGeorgia
FM BankBreaux BridgeLouisiana
FNB BankMayfieldKentucky
FNB BankRomneyWest Virginia
Fort Davis State BankFort DavisTexas
Fort Worth City Credit UnionFort WorthTexas
Fortifi BankBerlinWisconsin
Founders BankWashingtonD.C.
Four Corners Community BankFarmingtonNew Mexico
Fourth Capital BankNashvilleTennessee
Franklin Bank & Trust CompanyFranklinKentucky
Freedom BankBelingtonWest Virginia
Frontier Bank of TexasElginTexas
Georgia United Credit UnionDuluthGeorgia
Global Innovations BankKiesterMinnesota
Goodfield State BankGoodfieldIllinois
Goppert Financial BankLathropMissouri
Granite BankCold SpringMinnesota
Great Rivers BankBarryIllinois
GreenState Credit UnionNorth LibertyIowa
Grundy BankMorrisIllinois
Gulf Coast Bank & TrustNew OrleansLouisiana
HawaiiUSA Federal Credit UnionHonoluluHawaii
Hawthorn BankJefferson CityMissouri
Heartland BankWhitehallOhio
Henderson State BankHendersonNebraska
Heritage BankErlangerKentucky
Heritage Bank & TrustColumbiaTennessee
Heritage Bank, NASpicerMinnesota
Heritage South Credit UnionSylacaugaAlabama
High Plains BankFlaglerColorado
Home Bank, SBMartinsvilleIndiana
Home Federal Savings & LoanGrand IslandNebraska
Hometown National BankLa SalleIllinois
Horizon BankAustinTexas
Indiana Members Credit UnionIndianapolisIndiana
Indiana University Credit UnionBloomingtonIndiana
Industrial Credit UnionBellinghamWashington
InFirst BankIndianaPennsylvania
Institution for SavingsNewburyportMassachusetts
Integrity Bank & TrustMonumentColorado
InTouch Credit UnionPlanoTexas
INTRUST Bank National AssociationWichitaKansas
Inwood National BankDallasTexas
Iowa State BankClarksvilleIowa
Jacksboro National BankJacksboroTexas
Jackson County BankMcKeeKentucky
Jarrettsville Federal Savings and Loan AssociationJarrettsvilleMaryland
JD BankJenningsLouisiana
Jones BankSewardNebraska
Jonestown Bank & Trust Co.CleonaPennsylvania
JPMorgan ChaseNew YorkNew York
Kinecta Federal Credit UnionManhattan BeachCalifornia
Kish BankBellevillePennsylvania
La Salle State BankLa SalleIllinois
Lakeview BankLakevilleMinnesota
Lea County State BankHobbsNew Mexico
Legence BankEldoradoIllinois
LGE Community Credit UnionAtlantaGeorgia
LNB Community BankLynnvilleIndiana
MA BankMaconMissouri
Maine Community BankBiddefordMaine
Malaga BankPalos Verdes EstatesCalifornia
Manasquan BankWall TownshipNew Jersey
MAX Credit UnionMontgomeryAlabama
McCoy Federal Credit UnionOrlandoFlorida
MCNB Bank and Trust Co.WelchWest Virginia
Mediapolis Savings BankMediapolisIowa
Members 1st Federal Credit UnionEnolaPennsylvania
Mercantile BankGrand RapidsMichigan
Merchants & Farmers Bank of Greene CountyEutawAlabama
Merchants Bank of IndianaCarmelIndiana
Meredith Village Savings BankMeredithNew Hampshire
Merrimack County Savings BankConcordNew Hampshire
Metamora State BankMetamoraOhio
Metro BankPell CityAlabama
MidAmerica National BankCantonIllinois
Middlesex Savings BankNatickMassachusetts
Mid-Southern Savings Bank, FSBSalemIndiana
Midwest National BankSandovalIllinois
MidWestOne BankIowa CityIowa
Minnesota National BankSauk CentreMinnesota
MNB BankMcCookNebraska
Monticello Banking CompanyMonticelloKentucky
Moody National BankGalvestonTexas
Morgantown Bank & Trust Company Inc.MorgantownKentucky
Mountain America Credit UnionWest JordanUtah
Movement BankDanvilleVirginia
MSU Federal Credit UnionEast LansingMichigan
Mt. McKinley BankFairbanksAlaska
Murphy-Wall State Bank and Trust CompanyPinckneyvilleIllinois
My Community Credit UnionMidlandTexas
Neighborhood Credit UnionDallasTexas
Neighborhood National BankMoraMinnesota
NESC Federal Credit UnionMethuenMassachusetts
Nicolet National BankGreen BayWisconsin
North Alabama BankHazel GreenAlabama
North American Banking CompanyRosevilleMinnesota
North Central BankHennepinIllinois
North Shore Bank of CommerceDuluthMinnesota
North State BankRaleighNorth Carolina
Northeast BankMinneapolisMinnesota
Northwest Federal Credit UnionHerndonVirginia
Northfield BankStaten IslandNew York
Northwestern BankChippewa FallsWisconsin
Oak View National BankWarrentonVirginia
OMB BankSpringfieldMissouri
Partner Colorado Credit UnionArvadaColorado
Pegasus BankDallasTexas
Peoples BankMagnoliaArkansas
Peoples BankRock ValleyIowa
Peoples BankMendenhallMississippi
Peoples BankCliftonTennessee
Peoples Bank Mt. WashingtonMount WashingtonKentucky
Peoples Trust & Savings BankBoonvilleIndiana
Phenix-Girard BankPhenix CityAlabama
Pillar BankBaldwinWisconsin
Pima Federal Credit UnionTucsonArizona
Pinnacle BankMarshalltownIowa
Platinum Federal Credit UnionDuluthGeorgia
Pleasants County BankSt. MarysWest Virginia
Points West Community BankJulesburgColorado
Portage Community BankRavennaOhio
Preferred BankRothvilleMissouri
Premier BankOmahaNebraska
Princeville State BankPrincevilleIllinois
Progressive National BankMansfieldLouisiana
Range BankMarquetteMichigan
Redwood Credit UnionSanta RosaCalifornia
River Bank & TrustPrattvilleAlabama
Riverfront Federal Credit UnionWyomissingPennsylvania
Rivertrust FCUPearlMississippi
Robertson Banking CompanyDemopolisAlabama
Royal Banks of MissouriUniversity CityMissouri
Royal Credit UnionEau ClaireWisconsin
Rushville State BankRushvilleIllinois
Salem Five BankSalemMassachusetts
Savings Bank of WalpoleWalpoleNew Hampshire
Scott State BankBethanyIllinois
Security BankSpringfieldIllinois
Security Federal BankAikenSouth Carolina
Sentry BankSt. JosephMinnesota
Service Credit UnionPortsmouthNew Hampshire
Signature Bank of ArkansasFayettevilleArkansas
Silver State Schools Credit UnionLas VegasNevada
South Georgia Banking CompanyTiftonGeorgia
South Louisiana BankHoumaLouisiana
Southern Bank of TennesseeMount JulietTennessee
Southern Independent BankOppAlabama
Southern Michigan Bank & TrustColdwaterMichigan
Southwest Airlines Federal Credit UnionDallasTexas
SouthWest BankOdessaTexas
Spectra BankFort WorthTexas
Star One Credit UnionSunnyvaleCalifornia
State Bank NorthwestSpokane ValleyWashington
State Bank of CherryCherryIllinois
State Bank of NewburgNewburgVirginia
State Bank of WhittingtonWhittingtonIllinois
Stellar BankHoustonTexas
Stock Yards Bank & TrustLouisvilleKentucky
Studio BankNashvilleTennessee
SUMA Federal Credit UnionYonkersNew York
Sunrise BanksSt. PaulMinnesota
Susquehanna Community BankWest MiltonPennsylvania
T BankDallasTexas
Texana BankLindenTexas
Texas Bank and Trust CompanyLongviewTexas
Texas First BankTexas CityTexas
Texas Heritage BankBoerneTexas
Texas Republic Bank, N.A.FriscoTexas
The Bankers BankOklahoma CityOklahoma
The Cecilian BankCeciliaKentucky
The Citizens BankHickmanKentucky
The Citizens BankWestonWest Virginia
The Claxton BankClaxtonGeorgia
The Clay City Banking CompanyClay CityIllinois
The Colorado Bank & Trust CompanyLa JuntaColorado
The Farmers State Bank and Trust CompanyJacksonvilleIllinois
The First Bank & Trust Company of MurphysboroMurphysboroIllinois
The First National Bank of BellevueBellevueOhio
The First Trust and Savings Bank of WatsekaWatsekaIllinois
The Harvard State BankHarvardIllinois
The HomeTown Bank of AlabamaOneontaAlabama
The Iuka State BankSalemIllinois
The State BankLa JuntaColorado
The Waterford Commercial & Savings BankWaterfordOhio
Tompkins Community BankIthacaNew York
Triad BankFrontenacMissouri
Tri-County Bank & TrustRoachdaleIndiana
Tru-Fi Credit UnionMacclennyFlorida
Tulare County Federal Credit UnionTulareCalifornia
Union State BankClay CenterKansas
United Bank of IowaIda GroveIowa
United Bankers’ BankBloomingtonMinnesota
United Community BankRacelandLouisiana
United Community BankPerhamMinnesota
United Cumberland BankWhitley CityKentucky
United Farmers State BankAdamsMinnesota
United Federal Credit UnionSt. JosephMichigan
United Nations Federal Credit UnionLong Island CityNew York
University of Michigan Credit UnionAnn ArborMichigan
USALLIANCE Financial Federal Credit UnionRyeNew York
Utah First Federal Credit UnionSalt Lake CityUtah
U.S. BankCincinnatiOhio
U.S. Department of the Treasury’s Bureau of the Fiscal ServiceWashingtonD.C.
Vantage West Credit UnionTucsonArizona
Veridian Credit UnionWaterlooIowa
Viking BankAlexandriaMinnesota
VISIONBankFargoNorth Dakota
Visions Federal Credit UnionEndicottNew York
Vizo Financial Corporate Credit UnionGreensboroNorth Carolina
Washington State BankEffinghamIllinois
Waterfall BankClearwaterFlorida
Waterford Bank, N.A.ToledoOhio
Wells Fargo Bank N.A.San FranciscoCalifornia
Wells River Savings BankWells RiverVermont
West BankWest Des MoinesIowa
West Plains Bank and Trust CompanyWest PlainsMissouri
West Shore BankLudingtonMichigan
West Union BankWest UnionWest Virginia
Western BankArtesiaNew Mexico
Westside State BankHalburIowa
Whitesville State BankWhitesvilleWest Virginia
Wilson & Muir Bank & Trust CompanyBardstownKentucky
Winter Park National ParkWinter ParkFlorida
WNB FinancialWinonaMinnesota
Wolf River Community BankHortonvilleWisconsin
Wyoming Bank and TrustCheyenneWyoming

How is this going to affect consumers and businesses alike?

FedNow is designed to accommodate many use cases and supporting applications, namely account transfers and bill payments. One of its main goals is to allow banks and credit unions to innovate around this service, providing their account holders with instant payments to stay competitive with instant transfer apps like Venmo, Zelle and PayPal.

Ken Montgomery is the first vice president of the Federal Reserve Bank of Boston and a FedNow Service program executive. He states, “We couldn’t be more excited about the forthcoming FedNow Service launch, which will enable every participating financial institution, from the smallest to the largest and from all corners of the country, to offer a modern instant payment solution.”

How does FedNow compete with other P2P services?

One of FedNow’s main goals is to help banks and credit unions compete with peer-to-peer transfer apps, like Zelle, Venmo and CashApp. FedNow beats out other apps with transfer speed, and it’s high sending limits — and none of these services work internationally.

Transfer serviceBank transfer speedP2P transfer speedCostLimits
FedNowWithin secondsWithin seconds$0.045 fee per credit transfer paid by the senderSend up to $100,000 per credit transfer
ZelleWithin minutes, up to three daysWithin minutes, up to three days$0Send up to $2,500 per day
Cash AppStandard deposits within 1 to 3 business days, or instant delivery w/ 0.5% to 1.75% feeWithin minutes for instant deliver0.50% to 1.75% for instant delivery, minimum fee of $0.25Send up to $250 within 7 days, and receive up to $1,000 within 30 days.
VenmoWithin 1 to 3 business daysWithin 30 minutes for instant delivery1.75% fee for instant delivery, or free for standard delivery$5,000 per transfer limit