Companies

FedNow® Service Achieves New Participation Milestone: 1,000-Plus Financial Institutions

FedNow

"The FedNow Service has hit a new milestone shortly after reaching its one-year anniversary — there are now more than 1,000 financial institutions, headquartered in all 50 states, participating on the service. Small and midsize financial institutions, including community banks and credit unions, make up more than 95% of the participants on the FedNow Service network."

Tags: Federal Reserve

Companies

Are You Ready for Open Banking and the Proposed CFPB Rule?

Atlanta Fed

"Consumer financial data is the foundation of payments, investments, and loans that, when used safely, can support a well-functioning and inclusive economy. Think of open banking as permissioned access to personal financial data. Consumers can authorize third parties to retrieve their information to transform it into useful services."

Tags: Federal Reserve

Companies

Addressing Authorized Push Payment Scams in the US

Atlanta Fed

"Authorized push payment (APP) fraud is a growing concern, causing billions of dollars in global losses. Despite the introduction of technologies like two-factor authentication, biometric security, and artificial intelligence, the rise of faster payments has made combating this type of fraud increasingly difficult."

Tags: Federal Reserve

Companies

Defining Households That Are Underserved in Digital Payment Services

Kansas City Fed

"...We consider four elements—access, use, safety, and affordability—in our definition of households underserved in digital payments."

Tags: Federal Reserve

Companies

Collaborating Across the Payments Supply Chain to Fight APP Fraud

Federal Reserve Bank of Atlanta

"Financial institutions are not required to bear the cost of authorized push payment (APP) fraud. When a person is tricked into making a payment to a criminal enterprise, the fraud loss is the consumer's responsibility under Regulation E of the Electronic Funds Transfer."

Tags: Federal Reserve

Companies

Diary of Consumer Payment Choice Reveals Increased Payments, Stable Demand for Cash

FRB Services

"In May, Federal Reserve Financial Services’ FedCash® Services released the 2024 Findings from the Diary of Consumer Payment Choice. Based on a nationally representative survey of U.S. consumers in 2023, the report shows an overall increase in the number of payments compared to previous years, as well as stable cash usage."

Tags: Federal Reserve

Companies

Pay by Bank: An Alternative and Easy Way to Make Payments

Atlanta Fed

"In the fast-paced world of digital finance, new innovations are constantly changing how we manage our money. One development is pay by bank, a payment method that allows consumers to make payments directly from their bank accounts—without using a debit or credit card."

Tags: Federal Reserve

Companies

Instant Payment Use Cases: Real Estate Transactions

FedNow

"This resource describes the benefits of using instant payments via the FedNow® Service for real estate transactions, highlights use cases and opportunities that show promise, and outlines next steps for real estate industry professionals, payment service providers and enablers, and financial institutions."

Tags: Federal Reserve

Companies

A Look at PCI Compliance and the New Data Security Standards

Atlanta Fed

"PCI DSS combines technical and operational requirements to protect payment account data and the greater payment ecosystem. Categories include network security, vulnerability management, access controls, monitoring, and security policies. The version 4.0 update included more than 50 enhancements, with some compliance deadlines stretching into 2025."

Tags: Federal Reserve

Companies

Mobile Payments and the Exuberance of Youth

Atlanta Fed

As of October 2023, 70 percent of US consumers made a mobile payment at least once in the 12 months prior. Consumers young and old are increasingly comfortable using their phones to make payments.

Tags: Federal Reserve

Companies

Third-Party Risk: Focus on Cyber

Atlanta Fed

"My colleague Jessica Washington recently blogged about the four-corner payments model as a useful framework for understanding the responsible parties in the payments system. The model shows the minimum number of parties required to conduct clearing and settlement."

Tags: Federal Reserve

Companies

Fednow® Service Ends First Year With 900+ Participants

The Federal Reserve

"One year after its launch, the FedNow Service has surpassed 900 participating financial institutions — up from 35 that were live on the first day."

Tags: Federal Reserve

Companies

Fintech's Chains of Relationships and Interlocking Accountability

Atlanta Fed

"I'm guessing that you, like me, have been riveted by news stories about the Synapse bankruptcy. Synapse makes middleware that facilitates the connection between fintechs and financial institutions, enabling fintechs to assert the availability of pass-through Federal Deposit Insurance Corporation insurance for customer accounts and debit cards."

Tags: Federal Reserve

Companies

Earned Wage Access: An Ambiguous Concept

Atlanta Fed

"As my colleague Lali Shaffer pointed out last month, most of us like getting paid ASAP. For households living paycheck-to-paycheck, waiting to get paid can create problems: Fees for late bills. Deferred medical care. Utility shutoffs. And of course, expedited access to earnings can be helpful for everyone, whatever their financial situation."

Tags: Federal Reserve

Companies

After More Than a Decade, Merchant Steering with Discounts Remains Rare

Atlanta Fed

"Some retailers use discounts to encourage consumers to choose a particular payment instrument over others. For example, gas stations might offer a discount for paying with cash. Lately, as consumers worry about inflation and their household budgets, you might be seeing more discount offers."

Tags: Federal Reserve

Companies

After More Than a Decade, Merchant Steering with Discounts Remains Rare

Atlanta Fed

"Merchants have been able to offer discounts since 2012, when proposed legal settlements made it possible for them to do so. Another settlement between merchants and card networks, proposed this spring, would permit merchants to use discounts to distinguish among different types of a network's cards. (The settlements also encompass surcharging practices.)"

Tags: Federal Reserve

Companies

Federal Reserve Board Announces It Will Extend Until September 6, 2024, the Comment Period on Proposal to Expand Operating Days of the Federal Reserve Banks’ Two Large-Value Payments Services, Fedwire Funds Service and the National Settlement Service

Board of Governors of the Federal Reserve System

"The Federal Reserve Board announced that it will extend until September 6, 2024, the comment period on its proposal to expand the operating days of the Federal Reserve Banks' two large-value payments services, Fedwire® Funds Service and the National Settlement Service (NSS), to include weekends and holidays."

Tags: Federal Reserve

Companies

Federal Reserve: Stomp out Scams with the ScamClassifier Model

FedPayments Improvement

"The payments industry now has a new tool to improve scam reporting, detection and mitigation. Released in summer 2024, the ScamClassifierSM model supports consistent and detailed classification, reporting, analysis and identification of scams, attempted scams and related trends."

Tags: Federal Reserve

Companies

Faster/Instant Payments Use Is on the Rise Among Businesses and Consumers

Federal Reserve

"According to new Federal Reserve Financial Services surveys, U.S. businesses and consumers are rapidly adopting digital, faster and instant payments. Overall, 86% of businesses and 74% of consumers said they used faster or instant payments in 2023."

Tags: Federal Reserve

Companies

2024 Findings From the Diary of Consumer Payment Choice Highlight Increased Payments and Stable Demand for Cash Since the Pandemic

FRB Services

"A new study from Federal Reserve Financial Services revealed consumers made more payments in 2023 than in previous years, continuing the trend of rising payment transactions since 2020. The 2024 Diary of Consumer Payment Choice (Diary) is a survey conducted to understand the evolving role of cash in the U.S. economy."

Tags: Federal Reserve

Companies

Agencies Announce Public Meeting on Proposed Acquisition by Capital One of Discover; Public Comment Period Extended

Board of Governors of the Federal Reserve System

"The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) today announced a joint public meeting on the proposal by Capital One Financial Corporation, of McLean, Virginia, to acquire Discover Financial Services, of Riverwoods, Illinois...The purpose of the public meeting is to collect information from a wide range of stakeholders as the agencies evaluate the applications."

Tags: American Express Discover Federal Reserve

Companies Regulation

Agencies Announce Inflation-Adjusted Dollar Thresholds for Regulation CC Funds Availability

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau and the Federal Reserve Board jointly adjusted for inflation dollar amounts relating to the availability of customer funds. These changes in Regulation CC include the minimum amount of deposited funds that banks must make available for withdrawal by opening of business on the next day for certain check deposits as well as the amount of funds deposited by certain checks in a new account that are subject to next-day availability.

Tags: CFPB Federal Reserve

Companies

The Role of Core Banking Services Providers in Facilitating Instant Payments

Kansas City Fed

"Core banking services providers play key roles helping depository institutions (DIs) offer instant payments. Specifically, core providers process transactions in real time and connect DIs to instant payments system operators, upgrade customer-facing solutions, and facilitate open banking and embedded finance."

Tags: Federal Reserve

Companies

Federal Reserve Surveys: U.S. Businesses, Consumers Increasingly Adopt Faster and Instant Payment Services

FedNow

"U.S. businesses and consumers are rapidly adopting digital, faster and instant payment services, according to studies released by Federal Reserve Financial Services."

Tags: Federal Reserve

Companies

Federal Reserve Surveys: U.S. Businesses, Consumers Increasingly Adopt Faster and Instant Payment Services

Business Wire

"U.S. businesses and consumers are rapidly adopting digital, faster and instant payment services, according to studies released today by Federal Reserve Financial Services. Digital wallet use saw especially strong growth in 2023 — efficiency-focused businesses increased their use by 31% over the prior year, and convenience-minded consumers experienced a 32% increase."

Tags: Federal Reserve

Companies

Federal Reserve Board Requests Comment on Proposal to Expand the Operating Days of the Federal Reserve Banks’ Two Large-Value Payments Services, Fedwire Funds Service and the National Settlement Service, to Include Weekends and Holidays

Board of Governors of the Federal Reserve System

"The Federal Reserve Board on Friday requested comment on a proposal to expand the operating days of the Federal Reserve Banks' two large-value payments services to include weekends and holidays, so that they would operate every day of the year."

Tags: Federal Reserve

Companies

Nacha Rule Changes to Fight Authorized Payment Scams

Atlanta Fed

"As my colleagues and I have blogged previously, a payment that a legitimate account holder authorizes does not fit into the traditional framework for fraud remediation, which involves the Reg E requirement to refund customer money in the event of unauthorized payments fraud."

Tags: Federal Reserve

Companies

Has Your Board Discussed Your Wire-Transfer Strategy?

Atlanta Fed

"On June 27, 2022, the Board of Governors of the Federal Reserve System announced that the Federal Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service in a single-day implementation strategy on March 10, 2025...Preparing a financial institution's wire systems for ISO 20022 calls for an inventory and upgrade of the systems that support wire operations. These systems include..."

Tags: Federal Reserve

Companies

Financial Stability Implications of CBDC

Federal Reserve

"A Central Bank Digital Currency (CBDC) is a form of digital money that is denominated in the national unit of account and constitutes a direct liability of the central bank. We examine the financial stability risks and benefits of issuing a CBDC under different design options."

Tags: Federal Reserve

Companies

Federal Reserve Financial Services Introduces FedNow® User Group to Promote Collaboration, Engagement Among More Than 600 FedNow Participants

Business Wire

"Federal Reserve Financial Services introduced the new FedNow User Group to continue promoting collaboration among the 607 participating financial institutions and their service providers on the FedNow Service network."

Tags: Federal Reserve