FedNow Service

FedNowACTIVE

Operator: Federal Reserve Banks

Overseer: Board of Governors of the Federal Reserve System

Legal basis: Federal Reserve Act, Federal Reserve Operating Circular No. 8, Regulation J (Subpart C)

Launched: Jul 20, 2023

Daily Volume

Daily Value

1,889 participating financial institutions

Participants

Aug 31, 2026 · Federal Reserve Financial Services

Quick reference: View technical card →

Executive Summary

FedNow is the Federal Reserve's instant payment service, launched in July 2023 to enable US financial institutions to send and receive payments 24/7/365 with immediate settlement in central bank money. It represents the most significant addition to US payment infrastructure in decades. FedNow competes with The Clearing House's RTP network, creating a dual-rail instant payment landscape unique among major economies. Adoption is growing rapidly, with over 1,500 participants as of March 2026.

How It Works

Settlement Model

Real-Time Gross Settlement in central bank money (Federal Reserve balances)

Message Standard

ISO 20022 (native from launch)

Max Transaction

$10,000,000 (raised from initial $500,000 limit, individual FIs may set lower limits)

Clearing Mechanism

Direct RTGS — FedNow settles each transaction individually in central bank money, no netting

Settlement Cycle

Continuous 24/7/365 — no batch windows, no cut-off times

Message Flow

The sender's financial institution submits a credit transfer message to the FedNow Service. FedNow validates the message, checks the sender's Federal Reserve account for sufficient funds, and simultaneously debits the sender and credits the receiver. The receiver's institution is notified in real time. End-to-end target: 20 seconds. Settlement is immediate and final in central bank money.

Typical Use Cases

Business-to-business instant payments, payroll on demand, insurance claim payouts, e-commerce, account-to-account transfers, government disbursements

Key Data

Daily Volume

As of ·

Daily Value

As of ·

Participants

1,889 participating financial institutions

As of Aug 31, 2026 · Federal Reserve Financial Services

Participants & Access

Membership Requirements

Open to depository institutions with Federal Reserve master accounts. Participation through direct connection to FedNow Service via FedLine. Service providers may connect on behalf of financial institutions.

Governance & Risk

Governance Model

Operated by the Federal Reserve Banks under Board of Governors authority. Operating Circular No. 8 governs terms. Regulation J Subpart C provides legal framework. Industry feedback through FedNow Community engagement.

Concentration Risk

Low counterparty risk (settlement in central bank money). Operational concentration on Federal Reserve infrastructure, which has very high reliability standards.

Resilience & Business Continuity

Federal Reserve infrastructure with multi-site redundancy. 24/7 operational monitoring. Designed for 99.99%+ availability.

Dispute Resolution

Governed by Operating Circular No. 8. Request for Payment (RFP) feature enables payee-initiated flows. No chargeback mechanism — disputes are bilateral between sender and receiver institutions.

Pricing

FedNow pricing is designed to encourage adoption. Core participant fee plus per-transaction charges. From January 1, 2027 the FedNow Service 2027 Discount Program offers one-time statement credits of $5,000 to $20,000 for receive-enabled institutions and $20,000 to $80,000 for send-enabled institutions, with the top tiers requiring participation in the FedACH Receipt Discount Program and monthly send-volume qualification.

Transaction fee: $0.045 per credit transfer (2024 fee schedule)

Participation fee: $25/month (core participant fee)

Source: Federal Reserve Financial Services

Connectivity

operated alongside

Fedwire

Same operator (Federal Reserve), same master accounts, complementary services

operated alongside

FedACH / Nacha

FedACH provides batch alternative; some FedNow participants also use Same-Day ACH

Peer Comparison

FedNow competes directly with RTP (TCH) in the US market — an unusual dual-rail arrangement. FedNow settles in central bank money (like TIPS in Europe), while RTP settles in commercial bank money (like RT1). FedNow's per-transaction fee ($0.045) is lower than RTP. FedNow is newer (2023 vs 2017) but growing faster. Compared to SEPA Inst, FedNow is single-country rather than pan-European.

RTP

FPS · United States · The Clearing House (TCH)

SEPA Inst

FPS · Eurozone · EPC / RT1 / TIPS

Faster Payments

FPS · United Kingdom · Pay.UK

Compare in detail →

Timeline

Stored date Jan 1, 2027; precision not reviewed

FedNow subsystem record updated

FedNow subsystem record updated.

Source

Stored date Sep 23, 2026; precision not reviewed

FedNow subsystem record updated

FedNow subsystem record changed from Federal Reserve Board formally proposed payment accounts on May 20, 2026 (6-1 vote), enabling eligible non-bank financial institutions to access FedNow and Fedwire for clearing and settling payments.

Source

Stored date Sep 14, 2026; precision not reviewed

FedNow participant count increased to 1,901 (Sep 14, 2026)

FedNow participant count changed from 1,897 (Sep 8, 2026) to 1,901 (Sep 14, 2026). Recorded by ClearingPost on 2026-09-17.

Source

Stored date Sep 14, 2026; precision not reviewed

FedNow participant count increased to 1,901 participating financial institutions

FedNow participant count changed from 1,600+ participants (as of 2026-03-16) to 1,901 participating financial institutions (as of 2026-09-14). Recorded by ClearingPost on 2026-09-17.

Source

Stored date Sep 8, 2026; precision not reviewed

FedNow participant count increased to 1,897 (Sep 8, 2026)

FedNow participant count changed from 1,889 (Aug 31, 2026) to 1,897 (Sep 8, 2026). Recorded by ClearingPost on 2026-09-13.

Source

Stored date Aug 31, 2026; precision not reviewed

FedNow participant count increased to 1,889 (Aug 31, 2026)

FedNow participant count changed from 1,800+ (July 2026) to 1,889 (Aug 31, 2026). Recorded by ClearingPost on 2026-09-07.

Source

Stored date Aug 31, 2026; precision not reviewed

FedNow subsystem record increased to 1,889 participating financial institutions

FedNow subsystem record changed from 1,800+ participants (as of 2026-07-06) to 1,889 participating financial institutions (as of 2026-08-31). Recorded by ClearingPost on 2026-09-07.

Source

Stored date Apr 28, 2026; precision not reviewed

Reference document updated: FedNow Service Operating Procedures

https://www.frbservices.org/binaries/content/assets/crsocms/resources/rules-regulations/042826-fednow-service-operating-procedures.pdf. Recorded by ClearingPost on 2026-09-08.

Source

Stored date Jan 5, 2026; precision not reviewed

New document version recorded: Federal Reserve Operating Circular No. 8 (FedNow Service)

Version January 2026, effective 2026-01-05. Recorded by ClearingPost on 2026-09-17.

Source

Date not specified

Reference document updated: FedNow Service Operating Procedures

2026-09-16 (previously 2026-09-15). Recorded by ClearingPost on 2026-09-17.

Source

Date not specified

Reference document updated: Federal Reserve Operating Circular No. 8 (FedNow Service)

2026-09-16 (previously 2026-09-15). Recorded by ClearingPost on 2026-09-17.