Receive Payments File Format

To receive a FedNow Request for Payments (RfP) file into your business bank account, you’ll need to understand the file format used by FedNow, how your business bank processes incoming Request for Payments, and how to review or respond to these requests. The ISO 20022 XML format is generally used for payment-related messages, including Request for Payments in the FedNow system.

Here is a detailed guide to help you receive and process a FedNow RfP file in your business banking environment:

1. Understand the FedNow Request for Payment File Format

The FedNow Request for Payment (RfP) typically follows the ISO 20022 XML format, a standardized financial messaging protocol. This XML format contains various elements that structure the payment information and ensure interoperability between different banks and financial systems.

Key elements included in an RfP file:

• Message ID: Unique identifier for the Request for Payment.
• Creditor (Receiver): The business receiving the payment request (your business).
• Debtor (Payer): The entity making the payment request (your customer).
• Amount: The amount requested.
• Due Date: The date by which the payment is requested.
• Remittance Information: Any relevant reference information or details provided by the payer.
• Payment Terms: Terms regarding late fees or penalties if the payment is not made on time.

The ISO 20022 structure ensures consistency, so your bank can easily interpret and process the payment request. Banks will typically convert this XML into a readable format for businesses.

2. Check How Your Bank Supports FedNow Requests for Payment

Each business bank may have slightly different procedures for receiving and processing FedNow Request for Payments. It's essential to understand how your particular bank handles these requests:

• FedNow Inbox/Notification Area: Some banks provide a dedicated section in their business banking dashboard where all incoming FedNow or RTP payment requests are displayed.
• Email or SMS Notifications: Banks may notify you via email or SMS when an RfP has been received.
• API Integration: If you have set up API integration with your bank, FedNow RfPs may be automatically received in your ERP or accounting system.

3. Receive the RfP in Your Bank’s Dashboard

Once your business customer sends you a FedNow RfP, the payment request will arrive in your bank’s platform, typically in real time.

Steps to Access and Review RfP in Your Bank’s Dashboard:

1. Log In to Your Business Bank Account: Access your bank’s dashboard using your business credentials.
2. Navigate to the FedNow or RTP Section:
   • Locate the section where incoming payments and requests are managed. This may be listed under "FedNow Services," "Real-Time Payments," "Instant Payments," or "Requests for Payment."
   • Look for a specific Inbox or Pending Requests tab where all incoming RfPs are listed.
3. View and Review the RfP Details:
   • Open the RfP to see the payment amount, payer details, due date, and remittance information.
   • Ensure all details are correct before taking any further steps. Validate the request against your records if necessary.

4. Respond to the Request for Payment (RfP)

Once you receive an RfP, you can either approve and pay it or reject it if there are discrepancies.

Steps to Respond:

• Approve and Pay: If everything is in order and you want to proceed with the payment, your bank’s platform will typically offer a direct Pay Now button.
  • Confirm the payment details, select the account you wish to pay from, and authorize the transaction.
  • The payment will be processed instantly or within seconds via the FedNow system.
• Reject the Request: If the RfP contains incorrect information (e.g., wrong amount or wrong payer), you can reject the payment request. This option is usually available alongside the payment option in the dashboard.
  • You may need to provide a reason for the rejection, which will be sent back to the payer for review.

5. Track and Monitor Payment Status

After responding to the RfP, you can track the payment status directly within your bank’s platform.

• Transaction History: The payment will be logged in your Transaction History or Payment Summary, showing that the request was either accepted and paid or rejected.
• Real-Time Updates: If your bank supports real-time tracking, you can monitor the status of the payment as it moves through the FedNow or RTP system.

6. Save or Export RfP for Recordkeeping

Most banks provide an option to download or export the details of the RfP for recordkeeping purposes.

• You can export the payment details as a PDF, Excel, or CSV file depending on the options provided by your bank.
• This is useful for accounting, reconciliation, and auditing purposes.

Key Considerations:

• Ensure Bank Support: Verify with your bank that they fully support receiving FedNow RfPs and ask about any specific procedures or guidelines they may have.
• System Integration: If you use ERP or accounting software, check if your bank offers an API integration that will allow you to receive and respond to RfPs directly in your software environment.
• Transaction Limits: Some banks may have transaction limits for RTP or FedNow payments, so ensure the RfP falls within these limits.

Conclusion

To receive a FedNow Request for Payment (RfP) file into your business bank account, you must understand the ISO 20022 XML format, know how your bank presents and processes these files, and be ready to review or respond promptly. By following the steps above, you can effectively manage FedNow RfPs within your business bank’s platform, ensuring real-time payment processing and better cash flow management for your business.