Request FedNow Payment

To utilize real-time services for a Request FedNow Payment invoicing process, ensuring seamless and immediate payment transactions, a streamlined workflow is required. Here's how it can be achieved:

Payee Side (Invoicing):

1. Invoice Generation: The payee generates an invoice detailing the payment amount, recipient information, and any other necessary details.
2. Real-Time Integration: The payee's invoicing system integrates with a real-time payment service provider capable of handling FedNow transactions.
3. Encoding: The invoice data is encoded into the required format compatible with the real-time payment service provider, ensuring adherence to industry standards such as ISO 20022.
4. Digital Signature: Optionally, the payee may apply a digital signature to the invoice for added security and authenticity.
5. Transmission: The encoded invoice is securely transmitted in real-time to the payer through digital channels such as APIs or secure messaging protocols.

Payer Side:

1. Invoice Receipt: The payer receives the invoice digitally in real-time through the chosen communication channel.
2. Review and Approval: The payer reviews the invoice details and approves the payment request through their payment processing system or banking portal.
3. Payment Authorization: Upon approval, the payer's financial institution is authorized to initiate the FedNow payment transaction in real-time.

Payment Processing:

1. Real-Time Authorization: The payer's financial institution verifies the payment request and authorizes the FedNow payment transaction instantly, ensuring immediate funds transfer.
2. Funds Transfer: Funds are transferred in real-time from the payer's account to the payee's account via the FedNow network, facilitating instant payment settlement.

Confirmation and Reconciliation:

1. Payment Confirmation: Both the payee and the payer receive instant confirmation of the payment transaction, providing assurance of payment completion.
2. Reconciliation: The payment transaction is automatically reconciled within the respective accounting systems of the payee and the payer, ensuring accurate financial records.

Benefits:

• Speed: Real-time payment processing enables immediate funds transfer, facilitating faster payment settlement and cash flow management.
• Efficiency: Streamlined workflow reduces manual intervention and processing time, enhancing overall operational efficiency.
• Security: Secure transmission channels and optional digital signatures ensure data security and protect against unauthorized access or tampering.
• Convenience: Seamless integration with real-time payment services provides a user-friendly experience for both payees and payers, enhancing overall convenience.

By leveraging real-time services for Request FedNow Payment invoicing, businesses can enjoy seamless, efficient, and secure payment transactions, ensuring timely payment processing and improved cash flow management.