What do CUs want in Fed’s real-time payments service?

NAFCU Tuesday sent a Regulatory Alert to member credit unions seeking feedback on the Federal Reserve’s FedNow Service – a real-time gross settlement service that will feature integrated clearing functionality designed to process individual payments within seconds.

In the Regulatory Alert, NAFCU notes that although credit unions will have the ability to settle faster payments through the FedNow Service, “interoperability with existing, private sector systems is not guaranteed.”

NAFCU would like credit unions to specifically consider:

  • their support of the Federal Reserve’s decision to develop the FedNow Service;
  • features that are essential to incentivize use of the service; and
  • desirable tools or support to minimize the risk of payments fraud in connection with irrevocable, real-time transactions through the FedNow Service.

Credit unions can submit comments to NAFCU until Oct. 18; comments are due to the Fed Nov. 7.

 

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