Get set up as a Sponsor Bank to take on clients to receive incoming FedNow transactions. FedNow is a new instant payment service developed by the Federal Reserve Banks to enable any financial institution across the U.S., to provide safe and efficient instant payment services in real time, around the clock, every day of the year.

Use Cases

• B2B Payments: You receive funds for a a client that implements security solutions for businesses, and receives FedNow payments from those businesses.
• A2A Payments: You receive funds for a client that onboards consumers to grow savings deposits from their employer or primary account.

FedNow Inbound Payment Flow

1. Send Initiation: Program uses the Create Transaction API to initiate a FedNow customer credit transfer with achOptions: F for FedNow.
2. Pre-processing Checks: Checks and validations that TabaPay will perform on a Create Transaction request.
3. Credit Transfer: Tabapay generates a pacs.008 file for a customer credit transfer to FedNow.
4. Payment Status Report: Tabapay receives the Payment Status Report from FedNow Service.
5. Send Response: TabaPay sends the Create Transaction API response back to the client program.

Sponsor Bank Obligations

• When TabaPay receives inbound credit transfers, credits are made to the Client's Beneficiary Account at the Sponsor Bank.
• TabaPay routes transfers to Sponsor Banks. TabaPay digitally signs the transfer with secure credentials provided by the Sponsor Bank during the TabaPay-Sponsor Bank integration. Any transaction initiated from TabaPay to the Sponsor Bank without this digital signature is denied.
• Any credit transfer received by TabaPay from FedNow for the merchant/client will be routed to the Sponsor Bank.

How FedNow Receive Works

1. Receiving pacs.008 Message

When receiving an inbound FedNow payment, TabaPay will receive the pacs.008 message from FedNow as show in the payment flow.

TabaPay will send the reformatted pacs.008 message and credit transfer request to the Sponsor Bank.

2. Return Authorization

The Sponsor Bank sends the authorization response back to TabaPay.

3. Sending pacs.002 Message (ACTC)

TabaPay will send the pacs.002 message (ACTC) accepted.