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0 pointspjg2y ago0 comments

RFP i.e. Request for Payment is not part of this release. Furthermore there is no ETA from the Fed as to the release date for RFP.

Currently FedNow is simply a push payment system i.e. bank account holder may be able to use FedNow to push money out from their bank account to someone else's bank account.

The limitation here is the bank account holder must know the account number of the recipient. This is a huge limiter in adoption since most people don't want to share their bank account numbers and maintaining a directory of people's bank account numbers is cumbersome to say the least

Yes, the Fed is working on a directory but they have not yet announced the launch date for such a directory, not have they mentioned the index i.e. will it be phone number ? email ? something else ?

Bottom line: FedNow launch: Step in the right direction but still a long way to go

0 comments

hunter2_2y ago

> most people don't want to share their bank account numbers

While far less common these days, people gave this information to arbitrary payees (via personal checks) for decades. The idea that it's not to be given to payers, despite it having been given to arbitrary payees, seems misguided. If someone tries to commit fraud with that number, they're probably going to get caught, making it sufficiently unlikely, no?

TylerE2y ago

Seems to me a big part of why something like this should exist is so personal checks can just die, as they should have years ago.

Crappy usability, no security, abysmal throughput and latency.

runarberg2y ago

When I first came to USA as a tourist in 2011, one of the most amusing thing I witnessed was at a party at my Couch Surfer’s host when a friend of theirs payed back a debt by writing them a check. This cranked me up, as I had not seen a real world check in use since I was a kid in the early 1990s. I was equally surprised to learn how nobody else at the party thought anything of this. Coming from Iceland where you simply transfer them money via a bank app (or a website back then), this was my first American culture shock.

Now I live in the USA and I actually use checks all the time. I get paid via a check, I pay with checks at my local farmstand, I used to pay my rent with a check, my immigration fees were paid with a check etc.

ctvo2y ago

This is orthogonal to the original point. Passing around your checking account number isn’t that big of a security risk. We do it now and banks have built guard rails in place because we do it now.

MatthiasPortzel2y ago

Checks are easy to use: just write a name and an amount on a piece of paper.

They’re secure: they can only be cashed by the person they’re made out to (unlike cash).

They have theoretically infinite throughput: you can write any amount on a single check.

They have extremely high latency, which is why digital payments are being preferred in many situations. But the remaining situations where checks are used high latency is acceptable or even desirable.

tivert2y ago

> Crappy usability

Speak for yourself. In my book, paper wins the usability front over apps, because apps suck and have too much personal administrative overhead.

elyobo2y ago

Australia's "PayID" system gets around this by allowing you to pay to a mobile phone number or email address (generally findable via your phone's contacts). The implementation is a little clunky, but an additional benefit is that it's a bit like DNS for your payments - you can associated those details with different bank account to redirect payments if you move.

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