The FedNow Service enables community financial institutions to stay competitive by meeting instant payment demands. It helps reduce interbank obligations, expand market reach, and enhance customer experiences.
FedNow instant payments
The value of FedNow for financial institutions
Understanding FedNow and how it works
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The sender initiates a payment.
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The sender’s FI submits a payment request to the FedNow Service.
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The FedNow Service authorizes the payment request.
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The FedNow Service sends the payment request to the receiver’s FI.
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The receiver's FI confirms with the FedNow Service that it intends to accept the payment.
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The FedNow Service debits and credits the sender’s and receiver’s account.
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FedNow Service notifies sender's and receiver's FIs to confirm successful transaction completion.
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The receiver’s FI credits the receiver’s account.
Additional messages between parties are possible for fraud mitigation.
" People and businesses want to send and receive money at the click of a button. In fact, 7 in 10 businesses and consumers think it’s important that their bank or credit union offer faster payments, according to 2022 Federal Reserve research."
- The FedNow Service
learn moreAbrigo can help
FedNow fraud detection solutions and resources
Many of Abrigo's 2,400 community bank and credit union clients plan to incorporate the FedNow Service into their product offerings. To support their needs, Abrigo is enhancing its fraud and AML/CFT solutions to include FedNow transactions, providing financial institutions the tools they need to protect their customers and their institution.
Comprehensive transaction screening
FedNow transactions will be seamlessly integrated as a specific transaction type within our platform. This will facilitate compliance with AML/ CFT and OFAC regulations.
Our solution will also support front-line reporting of suspicious activities and provide robust customer due diligence functionalities alongside specialized scenario and typology analyses for other BSA requirements.
Advanced account-level analysis
Our platform will include FedNow transactions in its out-of-pattern account-level analyses, focusing on detecting fraudulent activities as well as any other potential AML/ CFT violations.
Abrigo aims to provide a robust defense against evolving financial fraud trends. This affirms our commitment to providing our customers with proactive risk mitigation.
Real-time risk assessments
Utilizing API-facilitated real-time inquiries and responses, we will provide immediate risk assessments to support the initiation of FedNow transactions via mobile and online banking platforms.
This feature enables our clients to take immediate and informed action, such as blocking or delaying suspect transactions, to enhance the security of their operations.
Abrigo resources
on FedNow Instant Payments
FedNow and compliance
Gain insights into AML/CFT compliance with FedNow instant payments.
READ THE BLOG
Trending payment types and Regtech solutions
How emerging technology helps keeps bank compliant.
Learn more
A credit union's guide to FedNow
A FedNow fraud prevention guide to help credit union AML and fraud teams.
READ THE BLOG
5 Ways financial instiutions can prepare for FedNow
Learn key takeaways for how financial institutions can be prepared for FedNow
Download NowFighting fraud with Abrigo
Combatting and reducing fraud takes dedicated focus and resources. The FedNow instant payment service is a powerful tool for supporting your financial institution. Abrigo is trusted by over 2,400 financial institutions and works to fight financial crime every day. Learn how FedNow and Abrigo go hand in hand.
Complete the form to be contacted about Abrigo & FedNow.
Latest FedNow guidance and resources
Discover the most recent and valuable resources related to FedNow, offering essential insights, guidance, and perspectives on the transformative potential of instant payments.
- FedNow® Service: Changing the future of payments video
Gain a comprehensive understanding of how FedNow is reshaping the landscape of payments, providing a glimpse into its revolutionary impact. - FedNow ® Readiness Guide: Participation Types
This comprehensive resource details the different ways financial entities can engage with and leverage the FedNowservice. - FedNow® early adopters on the benefits of instant payments
Learn from early adopters of FedNow as they share firsthand experiences and the benefits realized through the adoption of instant payment capabilities.
- Participating Financial Institutions
Access the list of institutions participating in the FedNow service, providing an insight into the expanding ecosystem embracing this innovative payment system. - FedNow® Technology Planning
Explore this resource offering guidance on technology planning related to the integration and utilization of FedNow. Gain insights into the technological aspects crucial for maximizing the benefits of instant payments.
