You may have heard about “FedNow® payments” - While the concept is simple, the details can seem a bit complex. With the rollout of FedNow payments, we're excited to offer an innovative benefit to our members, and we’re here to answer some of your most important questions.
What Are FedNow Payments?
FedNow is a service that allows for real-time (within seconds) fund transfers between financial institutions. The process is fully automated, meaning it's available 24/7, every day of the year. While the technical steps involved may be a bit more intricate, the key takeaway is simple: payments using FedNow arrive in your account almost instantly.
Typically, when transferring money between financial institutions, there’s a delay of at least a day. With FedNow payments, this delay is nearly eliminated, making your transfers quicker and more efficient.
FedNow also solves issues with bill payments. No more planning for buffer days to avoid late payments or overdrafts. With instant payments, your scheduled transfers happen on time, every time.
Are FedNow Payments Available for United Financial CU Members?
We’re excited about the many ways FedNow can benefit our members! Right now, United Financial members can RECEIVE instant payments from financial institutions that choose to use FedNow.
However, at this time, members are NOT able to SEND instant payments from their United Financial accounts. We hope to offer this feature soon, and we’ll keep you updated as more information becomes available.
Important note: While United Financial Credit Union can receive FedNow payments, we don’t have control over when the sending institution initiates a payment.
What Are the Benefits of FedNow Payments?
Here are just a few examples of how FedNow can make a difference:
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Gig workers and contractors can receive payments immediately after completing their work.
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Instant paydays are now possible! While most payrolls are processed through ACH (which can take 3-5 days), some employers may begin offering instant payments via FedNow as the service becomes more widespread.
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You pay for a meal with friends, and they can instantly send you their share using FedNow.
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Insurance disbursements could be sent to you immediately after a claim is approved, rather than waiting for a check in the mail.
Check out this helpful video from the Federal Reserve to learn more about other potential uses of FedNow.
How Does FedNow Work?
For an instant payment to occur, both the sending and receiving financial institutions must be part of the FedNow network and choose to send money via the service.
You’ll also need to provide the sender with United Financial’s routing number and your full 13-digit account number, which you can find by logging into online banking and selecting the account you want the funds deposited into.
Note: As of now, United Financial can only receive FedNow payments, and the timing of when a payment is sent depends on the institution sending the funds.
Is FedNow Safe to Use?
Yes! FedNow incorporates advanced security features to safeguard against fraud. While no system is completely immune to fraud, we encourage you to stay vigilant by avoiding common scams and reporting any suspicious activity immediately.
Do I Need a New App to Use FedNow?
No, you don’t need a separate app or login! FedNow payments are made directly between financial institutions, so there’s no need for intermediary apps like PayPal, Zelle, or Apple Pay.
How Is FedNow Different from PayPal, Zelle, Apple Pay, Etc.?
Unlike other payment apps that may hold your funds for a few days or charge extra fees for same-day transfers, FedNow payments are routed directly to your account in real-time. This means your money is available to you when you need it, without unnecessary delays or fees.
Enjoy FedNow Right Now!
We’re thrilled to offer FedNow payments to our members and excited about the benefits it brings. As FedNow becomes more popular, we’ll keep you informed about new features and the option to send instant payments as soon as it becomes available.