Good Funds Processing of Real-Time Payments
"Good Funds" Payment Solutions
Good Funds, is defined simply as: Collected funds in a bank account and usable immediately by the owner of the account. Our "Good Funds" payment gateway allows for real-time digital payments that are
immediate, irrevocable, intra-bank and/or interbank
account-to-account (A2A) transfers that utilize a real-time messaging
system connected to every transaction participant through all U.S.-based financial institutions. Funds are available for use by the receiver and real-time confirmation is provided to both you ("the sender") and receiver in seconds. Most Good Funds transactions are "Credit Push" versus "Debit Pull." Some terminology is necessary to follow a funds transfer under Article 4A. A "sender" is any person or entity who sends a "payment order." The first sender is the originator, and subsequent senders are banks participating in the transfer. A sender communicates a "payment order" to a "receiving bank." Receiving banks become senders if they forward "payment orders" to other banks. The last bank in the communications chain is the beneficiary's bank, and it can never be a sender with respect to the specific funds transfer. The "beneficiary" is the entity that the sender intends to pay. A "payment order" is simply the form of communication that the parties to a funds transfer agree to use. The payment order's salient characteristics are that it calls for an unconditional payment of money from the sender to the beneficiary and that it is transmitted to a receiving bank. [See UCC Article 4A]
Evaluation Of Finality of Payment Rules
Thus, while "discharge" is concerned with the payor-payee relationship, "final payment" is a matter between the payee and a bank; the latter concept is required to express cash equivalency Payment Finality and Discharge in Funds Transfers
Good Funds UCC Article 4A Evolution
Are FedNow & The Clearing House Real-Time Payments Good Funds?
In a business-to-business context, both FedNow and RTP offered by The Clearing House (TCH) is a credit “push”
system. Payments are pushed from the bank account of the
business making the payment to the bank account of the company
receiving it. In between, both platforms support the financial
institution’s customer-facing systems for services like bill
payment, cash management, peer-to-peer (P2P) payments, and
emergency disbursements. Messages such as request to pay, requests for payment,
payment confirmations, requests for additional information, and
remittance detail are used to create frictionless
customer-facing interactions. TCH's system
is the only privately owned Real-Time Payment "Rail" that can
reach all U.S. bank and credit union accounts and enable funds
to be sent and received within seconds. All FedNow & TCH Real-Time payments are "Credit
Push" instead of "Debit Pull."
Real-Time Payments via The FedNow Service by the United State Federal Reserve are GOOD FUNDS!
Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the
FedNow ® Service, to support faster payments in the United States. What are FedNow Real-Time payments: FedNow - Federal Reserve Real-time Payments
The Federal Reserve's FedNow Service will be the second system (see The Clearing House RTP) offering Real-Time Payment "Rail" that can reach all U.S. bank and credit union accounts and enable funds to be sent and received within seconds.
The FedNow Service enables Participants to initiate credit transfers, receive final and irrevocable
settlement for credit transfers, and make available to Receivers funds associated with such
credit transfers in real-time, twenty-four (24) hours a day, seven (7) days a week, fifty-two (52) weeks a year.
Real-Time Payments via The Clearing House are GOOD FUNDS!
The RTP®
(Real-Time Payment) network, the real-time payments system from
The Clearing House,
is the first new core payments infrastructure in the U.S. in
more than 40 years. RTP®
is not Real-Time ACH. The RTP System enables Participants to initiate credit transfers, receive final and irrevocable
settlement for credit transfers, and make available to Receivers funds associated with such
credit transfers in real-time, twenty-four (24) hours a day, seven (7) days a week, fifty-two (52) weeks a year.
Features & Benefits
FedNow & TCH Real-Time payments have benefits for all parties involved in Financial Transactions.
Benefits to your company include:
- Money Transfer: Current limit of $25,000 (2020 should see limit increase to $100,000).
- It's Fast: 24/7/365 access to funds anytime vs. several days for paper checks or ACH transfers to process.
- It's Final: Because FedNow & TCH say so. All RTP are Final & Irrevocable.
- Software Integration: Integrate your Management or Enterprise software with us.
- Message Detail: Full 145 characters available using ISO 20022 XML format.
- Online Down Payments: Don't use inconvenient and expensive Wires & Cashier's Checks.
- Online Real-Time Reporting: Configured Dashboard with Virtual Terminal login.
- Reduced calls / emails in the "Purchasing Chain": All parties to a "FedNow" and "TCH Real-Time payments" transaction receive text & email messaging.
Today Payments Gateway Merchant Services
...continues to meet the challenge of our clients by offering cost effective "good funds", Good Funds Wallet, Visa Direct, wires, credit card, ACH and e-check payment processing services into the electronic payment solutions banking system. Electronic banking includes the transfer of funds between companies and/or consumer accounts for collection and payments.