Update as of 09/10/25: The FedNow® Service to Increase Transaction Limit to $10 Million in November 2025
The Federal Reserve announced that the FedNow® Service is set to increase its network transaction limit from $1 million to $10 million in November 2025. The move comes in response to growing demand for higher-value instant payments and will enable financial institutions and businesses to support a broader range of use cases.
At the $1 million cap, the FedNow Service primarily served consumer, small business, and some commercial use cases—loan disbursements, earned wage access, P2P, and vendor payouts. By increasing the cap to $10 million, the Fed has cleared the way for high-value commercial transactions to migrate from slower, more expensive rails like wires or ACH into a faster, always-on network.
The new $10 million cap positions the FedNow Service to support high-value transactions such as:
- Commercial Treasury & Liquidity Management: Corporates can now move large sums instantly across subsidiaries or accounts for liquidity optimization, end-of-day settlements, or position management.
- Just-in-Time Supplier Payments: High-value supplier, logistics, or inventory transactions can now be paid in real time, improving cash flow for vendors and strengthening buyer–supplier relationships.
- Title Company Closings & Real Estate Transactions: Real estate closings and escrow transactions often exceed $1 million. Raising the cap allows mortgage funding and property settlements to clear instantly, instead of relying on wires.
- Cross-Border Substitution (Domestic High-Value Transfers): While true cross-border is still evolving, corporates can use the FedNow Service for large domestic transactions that might otherwise ride SWIFT or Fedwire, cutting costs and complexity.
- Large B2B Invoice Payments: Enterprises can settle invoices of several million dollars instantly, with remittance data carried in ISO 20022 messages for faster reconciliation.
What’s Next:
The higher $10 million transaction limit opens the door for a broader range of commercial and institutional use cases on the FedNow Service. Businesses will be able to settle large payments instantly, and financial institutions can expand their treasury offerings with services like real-time liquidity dashboards, high-value disbursements, and Request for Payment (RfP) capabilities designed for larger invoices or settlements. This shift positions instant payments as a more practical option for organizations managing significant cash flows or time-sensitive obligations.
With larger values moving in real time, financial institutions will also need to strengthen operational safeguards. Fraud controls and risk management frameworks must adapt to account for the speed and finality of instant transactions at this scale. Investments in layered fraud prevention, behavioral biometrics, and advanced risk scoring will become increasingly important. At the same time, the expanded limit creates opportunities for new revenue models, such as premium pricing for high-value instant transfers or bundling the FedNow Service access with enhanced treasury products, reinforcing the role of instant payments in commercial banking strategies.
Have questions about how instant payments can create value for your institution? Explore real-world examples in our Instant Payments Use Case Framework: Use Cases and Revenue Drivers.
Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with TCH’s RTP® network, the FedNow® Service, Zelle®, Fedwire, ACH, and Visa Direct, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
