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Nine things you need to know about the FedNowSM Service

The Federal Reserve recently announced the features and functionality of the upcoming FedNow Service, an instant payments infrastructure that will enable financial institutions of all sizes to offer innovative payment options to their customers.

Since the announcement, we’ve received a lot of interest in the service and have held webinars and other conversations to offer more details and provide an opportunity for individuals and organizations to ask questions.

Read this new article to see answers to some of the top questions we’ve received.


Chicago Payments Symposium brings experts together – virtually – from around the globe

In September, the 20th annual Chicago Payments Symposium attracted a global audience of industry and thought leaders for open dialogue about the current and future state of the payments ecosystem, ways the industry can more effectively be Collaborating Around the Core and lessons learned during the COVID-19 pandemic.

Over two action-packed days, the virtual event featured several insights, including:

  • Forethought pays off: “Although it is safe to say no one anticipated an event quite like the pandemic, the industry’s forethought, investment and preparation to ensure that the payments system would be resilient to extreme scenarios has paid off greatly,” said keynote speaker Loretta Mester, president and chief executive officer, Federal Reserve Bank of Cleveland and chair of the Fed’s Financial Services Policy Committee, which oversees its payments activities. “It has allowed us to avoid a collapse of the payments system – an event that would have made what was already a grave situation much, much worse.”
  • Adoption of instant payments is growing globally: Panelists agreed instant payments adoption is on the rise worldwide, although instant payments offerings and usage rates vary by region and country. Adoption has benefited from introduction of new content, services, standards and monetization opportunities.
  • The FedNowSM Service is coming: FedNow program executive Ken Montgomery said the pandemic has not affected the Federal Reserve’s ability to achieve phased development milestones as it works to deliver a FedNow Service that will meet the industry’s needs to facilitate nationwide reach of instant payments.
  • Payments security must remain a top priority: The pandemic has caused the industry to place greater focus on payments security, said Admiral Mike Rogers, former director of the National Security Agency and former commander of the U.S. Cyber Command. Bad actors include nation-states and crime rings that exploit vulnerabilities in the payments infrastructure, human behavior and remote access partners. Fortunately, artificial intelligence and machine learning are just two of the promising approaches to combat fraud, and the FraudClassifierSM model (Off-site) is a new tool to help classify it.

Action Item:

Visit the Chicago Payments Symposium 2020 agenda (Off-site) to learn more – and check out the 20th anniversary symposium video (Off-site) to get a sense of the excitement about this event over the years.


Announcing the FedLine® Solutions Security and Resiliency Assurance Program

The Federal Reserve Banks’ FedLine Solutions are a critical component of the U.S. payment system. While we layer and embed security within our FedLine Solutions, the organizations that use the service play a vital role in safeguarding the payment messages and information that are transmitted over FedLine. Additionally, during times of uncertainty security threats tend to increase. This increased risk, along with the evolving threat landscape, serves as a reminder that security posture is more important than ever.

In response to the evolving security threat landscape, the Federal Reserve Banks are implementing a Security and Resiliency Assurance Program (Assurance Program). As part of this new program, institutions that use the FedLine Solutions must:

  • Conduct an assessment of their compliance with the Federal Reserve Banks’ FedLine security requirements
  • Submit an attestation that they have completed the assessment

These steps will help reduce the risk of systemic breakdown and fraudulent payments being sent through the payments system. All service providers and financial institutions with a FedLine Solutions connection will be expected to complete this program on an annual basis, with a full calendar year to complete the program.

What action does my organization need to take to prepare?

No immediate action is required to prepare. We will provide additional detail and next steps later this year directly to FedLine Solutions customers.

If you have questions, please contact the Customer Contact Center (CCC) at (888) 333-7010. As a reminder, your account executive is also available to assist you. To find a list of Federal Reserve Bank contacts specific to your organization, use the Find Your Contacts tool.


Automate your search with FedPayments® Reporter Service for FedACH® Services

The Federal Reserve Banks are committed to developing innovative options to meet your financial institution’s changing needs. Automation is a simple way to get the information you need when you need it. The FedPayments® Reporter Service for FedACH® Services generates reports automatically, or on a fixed schedule, which helps save valuable time. The service enables financial institutions to search Automated Clearing House (ACH) files for information such as return items, Death Notification Entries (DNE), International ACH Transactions (IAT) and financial Electronic Data Interchange (EDI) messages. Reports can be set up for automated delivery to your customers via secure email or interfaced with your online banking portal.

The FedPayments Reporter Service for FedACH allows you to:

  • Receive reports in assorted file formats of your choice
  • Provide business customers with the remittance information they need to match payments to invoices or claims
  • Retrieve reports via an encrypted email portal
  • Send reports to a FedLine® Solution to facilitate population of internet banking cash management portals
  • Access customer service easily from knowledgeable support groups

Get all of these features – and more – with an easy to establish connection within multiple FedLine Solutions.

To start using this service, visit FedPayments Reporter Setup or contact your account executive.


Fed Facts: There’s an app for that – Fed news at the touch of a button!

Interested in the latest news from the Federal Reserve System? Don't worry, there's an app for that!

The Fed app (Off-site) gives you an instant connection to news, tweets, videos and websites for the Federal Reserve Banks and the Board of Governors. This one-stop app is a must-have for anyone interested in the work of our nation's central bank and allows users to:

  • View newsfeeds from the entire Federal Reserve System
  • Get to know the Board of Governors
  • Access the most recent speeches, testimony and news releases from the Board of Governors
  • Learn more about each of the 12 Federal Reserve Banks and the economic outlook within your district
  • Locate Federal Reserve Bank museums across the country

Action Item:

The Fed app is available for download in the App Store (Off-site) and Google Play App Store (Off-site). Stay connected with the Federal Reserve and download today!