Request FedNow instant payment transactions

To facilitate FedNow instant payment transactions invoicing from payees to payers using digital ISO 20022 messaging through Real-Time Payments services, several steps need to be followed:

Payee Side (Invoicing):

1. Invoice Generation: Payees create invoices detailing the payment amount, due date, invoice number, and any other relevant information using their invoicing system or accounting software.
2. ISO 20022 Messaging Integration: Payees utilize a Real-Time Payments service provider that supports ISO 20022 messaging to encode invoice data into the required format.
3. Digital Signature (Optional): Payees may opt to apply digital signatures to invoices to ensure authenticity and integrity during transmission.
4. Transmission: The ISO 20022-encoded invoices are securely transmitted from the payee's system to the payer's system through Real-Time Payments services using digital channels such as APIs or secure messaging protocols.

Payer Side (Receiving Invoices):

1. Invoice Receipt: Payers receive the ISO 20022-encoded invoices digitally from the payees through Real-Time Payments services.
2. Decoding: Payers decode the ISO 20022 messages to extract invoice details and integrate them into their accounting or payment systems.
3. Review and Approval: Payers review the imported invoice details, verify the accuracy of the information, and approve the payment within their system.

Payment Processing:

1. Payment Authorization: Upon approval, payers initiate FedNow instant payment transactions through their financial institution's Real-Time Payments platform, specifying payment details such as the amount, payee information, and payment date.
2. ISO 20022 Payment Initiation: Payers encode payment instructions, including the payment amount, payee details, and payment date, into ISO 20022 messages.
3. Digital Signature (Optional): Payers may apply digital signatures to payment instructions for additional security and authentication.
4. Transmission: The ISO 20022-encoded payment instructions are securely transmitted from the payer's financial institution to the payee's financial institution through Real-Time Payments services.
5. Funds Transfer: Real-Time Payments services facilitate immediate funds transfer from the payer's account to the payee's account in real-time, ensuring timely payment processing.

Benefits:

1. Efficiency: Integration of ISO 20022 messaging within Real-Time Payments services streamlines invoicing and payment processes, reducing manual intervention and processing time.
2. Accuracy: Standardized messaging formats ensure consistent data exchange, minimizing errors and discrepancies.
3. Security: Secure transmission channels and optional digital signatures enhance data security, protecting sensitive payment information from unauthorized access or tampering.
4. Speed: Real-Time Payments services enable immediate funds transfer, facilitating faster settlement and cash flow management for both payees and payers.

By leveraging digital ISO 20022 messaging through Real-Time Payments services for FedNow instant payment transactions invoicing, payees and payers can enjoy a streamlined and secure payment experience while ensuring compliance with industry standards.