FedACH

Yeah, so I started out...

After college, I went to the Federal Reserve where I worked in Fed ACH for about 10 years and then went over to credit and risk management also within the Federal Reserve and learned quite a bit there.

That combination of skill sets is what allowed me to come over here to NACHA and work in the risk management area.

My specialty here is with third-party senders, really understanding those roles and helping them out, helping them understand what their requirements are, what they should be doing, and how they can help the network by introducing new payments and help their financial institutions by letting them understand what everybody's supposed to be doing.

But note, these OCC state charters, national charters are chartered.

The PACE bill – this is another act working through Congress – OCC registration for non-banks with at least 40 state money transmitter licenses, one-to-one reserves, and FedWire, FedNow, and FedACH access in the same manner – and in the same extent as a bank.

No Senate companion.

It is not passing this year, according to my notes.

Product at increase is...

Oh, this is the FedACH API.

You want to know what that parameter is called? It's called the exact same value as the network calls it.

We do not try to be creative and to create an abstraction there because you want... high fidelity pass through of that data and information.

Most wire transfers in the US are done through Fedwire, the Federal Reserve's wire transfer service, which processed one quadrillion dollars worth of transfers in 2022 alone.

Same goes for electronic funds transfers, which use that automated clearinghouse system with the primary provider being the Federal Reserve via its Fed ACH service, which processed $40 trillion worth of transfers in 2022.

And by many accounts, FedNow is really just an upgrade to Fed ACH.

And while that does come with more capabilities, it doesn't necessarily mean that the Fed will be processing more transactions as in a way it will cannibalize what it's already processing.

Secondly, there's really no evidence that institutions would be forced to use FedNow or even that it will become the only provider of real-time transfers.