What is the default transfer limit for FedNow as of 2024?

The default transfer limit for FedNow as of 2024 is set at $100,000. This threshold is significant as it facilitates larger real-time payment transactions between financial institutions, enhancing the service's capacity to meet the needs of businesses and consumers for instant money transfer solutions. The established limit aims to balance the risk associated with faster payments while providing a service that accommodates a wide range of payment scenarios, including payroll, vendor payments, and other business-related transactions that require speed and efficiency.

By having a default limit of $100,000, FedNow positions itself within the market to support high-value transactions effectively, while still maintaining a framework for financial institutions to assess and manage their risk exposure associated with real-time payments. This amount is reasonable for most commercial uses without exposing the system to excessive risk, thereby promoting trust and reliability in the use of electronic payments.