WHY JJ-INSTAPAY

Step 1. Initiation. The sender (an individual or business) initiates a payment with their FI through an end-user interface outside of the FedNow Service.  

Step 2. Sender's submission of payment message. The Sender FI submits a payment message (ISO® message pacs.008) to the FedNow Service. 

Step 3. Validation. The FedNow Service validates the payment message.

Step 4. FedNow forwards payment message. The FedNow Service sends the contents of the payment message to the recipient’s FI to seek confirmation that the Receiver FI intends to accept the payment message.  

Step 5. Confirmation. The Receiver FI sends a positive response of “accept” to the FedNow Service, confirming it intends to accept the payment message.

Step 6. Settlement. The FedNow Service settles the payment, debiting and crediting the designated master accounts of the Sender FI and Receiver FI (or of their correspondents), respectively.

Step 7.  Advice. The FedNow Service sends an advice to the Receiver FI and an acknowledgement to the Sender FI, executing the payment order and notifying each that the Federal Reserve Banks settled the payment message

Step 8. Funds availability and notification to customer. As a term of participation in the FedNow Service, the Federal Reserve Banks anticipate requiring the Receiver FI to make funds available to the recipient immediately after step 7.

Step 9. Confirmation of posting. In general, the Receiver FI has the option of sending a message through the FedNow Service to the Sender FI indicating that the payment has been posted to the recipient’s account.

Step 10. Notification. If the Receiver FI sends a confirmation of posting message through the service, the Sender FI should notify its customer that the funds have been made available to the recipient.