Send Request for Payment FedNow vs. Credit Cards: The Better Salesability Choice

Stop Losing Sales to Credit Card Processing Delays

Send Request for Payment FedNow® vs. Credit Cards: Which Payment Method is Right for You?

As businesses and consumers seek faster and more secure payment options, FedNow® has emerged as a real-time alternative to traditional credit card payments. While credit cards have long been the standard for digital transactions, they come with processing fees, settlement delays, and potential chargebacks. In contrast, FedNow® offers instant, direct bank-to-bank transfers, eliminating intermediaries.

This guide compares FedNow® and credit cards, helping you determine the best choice for your payment needs.

1. What is FedNow®?

FedNow® is a real-time payment network launched by the Federal Reserve, allowing businesses and individuals to send and receive money instantly. Unlike traditional payment methods, which often take days to settle, FedNow® processes transactions within seconds, 24/7/365.

Key Benefits of FedNow® Payments:

✅ Instant Fund Transfers – No waiting for bank processing times.
✅ No Credit Card Processing Fees – Avoid costly transaction fees.
✅ No Chargebacks – Transactions are final, reducing fraud risks.
✅ Available 24/7 – Works anytime, including weekends and holidays.

Best for: Businesses and individuals who need instant cash flow and want to avoid high transaction fees.

2. How Do Credit Cards Work?

Credit cards have been a convenient payment option for decades, allowing consumers to borrow money for purchases and repay later. However, for merchants, credit card transactions come with processing fees, chargebacks, and settlement delays.

Pros of Credit Cards:

✔️ Widespread Adoption – Most consumers use credit cards daily.
✔️ Fraud Protection & Chargeback Rights – Buyers can dispute transactions.
✔️ Credit Building – Consumers can improve their credit scores with responsible use.

Cons of Credit Cards:

❌ Processing Fees – Typically 1.5% – 3% per transaction, plus additional fees.
❌ Settlement Delays – Funds take 1–3 days to clear.
❌ Chargebacks – Customers can dispute charges, leading to revenue loss.
❌ Risk of Debt & Interest – Consumers may accrue high-interest debt.

Best for: Businesses that cater to consumer purchases and can absorb processing costs.

3. FedNow® vs. Credit Cards: A Side-by-Side Comparison

4. When to Choose FedNow® Over Credit Cards

✔️ If you want to avoid high transaction fees – FedNow® eliminates credit card processing fees.
✔️ If you need instant payment settlements – Unlike credit cards, which take days to settle, FedNow® payments are immediate.
✔️ If chargebacks are a concern – FedNow® transactions are final, reducing fraud risks.
✔️ If your business relies on fast cash flow – Real-time payments improve liquidity and reduce delays.

5. When Credit Cards May Be a Better Option

✔️ If you want to offer financing to customers – Credit cards allow buyers to pay over time.
✔️ If you need chargeback protection – Customers can dispute unauthorized transactions.
✔️ If you accept international payments – FedNow® is currently only available for U.S. bank transactions.
✔️ If your customers prefer credit rewards – Many shoppers use credit cards for cashback and rewards.

Final Verdict: Should You Send Requests via FedNow® or Credit Cards?

If you need instant, low-cost, and final transactions, FedNow® is the superior choice. However, if your business depends on customer financing, credit card rewards, or global transactions, credit cards remain essential.

Ready to Leverage FedNow®?

If your financial institution supports FedNow®, start sending and receiving real-time payments today. Contact your bank to enable FedNow® transactions for your business.

Creation Request for Payment Bank File

Enhance Your Send Request FedNow using Credit Cards Payment Requests with FedNow’s ISO 20022 Messaging

Streamline Payments with Advanced Request for Payment Options:

Harness the power of FedNow's Request for Payment system to transform how you manage invoices and remittances. Our platform supports diverse data integration options, allowing payees to incorporate detailed invoice data directly within the RfP message or link to a comprehensive Merchant Page.

Flexible Invoice Details with ISO 20022 Messaging:

Leverage the flexibility of ISO 20022 messaging standards in our RfP system. You can choose to display crucial payment details directly in the message with a concise 140-character description, or through a dynamic "Hyper-Link" leading to a detailed Merchant Page. This Merchant Page can be hosted either on your website or TodayPayments.com/HostedPaymentPage.html through our seamless integration solution.

Customizable Merchant Pages for Enhanced Customer Experience:

Create a Merchant Page that not only details all the MIDs you own but also presents these options attractively to your customers through the RfP. This customization ensures that whether your payer opts for Real-Time Payment, Same-Day ACH, or Card transactions, they can easily navigate and complete their payments through a simple click on the hyperlink provided on your Merchant Page.

Call us today and receive the .csv or .xml FedNow® or Request for Payment (RfP) file you need—all during your very first phone call! We guarantee that our comprehensive reports integrate flawlessly with your bank or credit union. As pioneers in recognizing the benefits of RequestForPayment.com, we have stayed years ahead of our competitors. Although we are not a bank, our role as an "Accounting System" within the Open Banking ecosystem enables us to work with billers to create effective RfP files that seamlessly upload to the biller's online banking platform. U.S. companies rely on our expertise to learn how to deliver the RfP message directly to their bank with precision.

Our advanced solution, Today Payments' ISO 20022 Payment Initiation (PAIN.013), demonstrates how to create a Real-Time Payments Request for Payment file that sends a clear message from the creditor (payee) to its bank. Most financial institutions support the import of messaging and batch files for both FedNow® and Real-Time Payments (RtP), ensuring smooth processing. Once the file is correctly uploaded, the creditor’s bank processes the payment through a secure "Payment Hub"—with The Clearing House serving as the RtP Hub—and relays the message to the debtor's (payer's) bank. This streamlined approach not only accelerates transaction processing but also enhances transparency and reliability for all parties involved.

... easily create Real-Time Payments RfP files. No risk. Test with your bank and delete "test" files before APPROVAL on your Bank's Online Payments Platform. Today Payments is a leader in the evolution of immediate payments. We were years ahead of competitors recognizing the benefits of Same-Day ACH and Real-Time Payments funding. Our business clients receive faster availability of funds on deposited items and instant notification of items presented for deposit all based on real-time activity. Dedicated to providing superior customer service and industry-leading technology.