WASHINGTON– The FedNow Service’s transaction network limit is increasing to $10 million from $1 million.
This is the second increase this year and is designed to let financial institutions and businesses support higher-value use cases, according to the Fed.
“Our second transaction limit increase this year reflects the growing demand for instant payments — as the benefits of immediate funds availability for all types of payments become more apparent, financial institutions need flexibility to serve customers and support internal processes,” Mark Gould, chief payments executive for Federal Reserve Financial Services, said in a statement.
What’s Coming
The new limit, set to take effect in November, is meant to support corporate treasury transactions, payroll transfers and vendor payments.
“Financial institutions will continue to have flexibility to set lower transaction limits based on internal risk parameters and business needs,” the Fed said.
The Fed added that new risk mitigation tools like account activity thresholds provide greater control and confidence as instant payment offerings expand.
FedNow volumes have now surpassed 1 million.
