Federal Reserve raises FedNow instant payments limit to $10 million

The Federal Reserve has announced a tenfold increase in the FedNow Service transaction limit, raising the ceiling from $1 million to $10 million, effective November 2025.

Federal Reserve raises FedNow limit

The change reflects the rising appetite for real-time payments across the US financial system and the growing importance of speed and certainty in high-value transactions.

Mark Gould, chief payments executive for Federal Reserve Financial Services (FRFS), said the adjustment underscored the rapid momentum behind instant payments.

“Our second transaction limit increase this year reflects the growing demand for instant payments.

As the benefits of immediate funds availability for all types of payments become more apparent, financial institutions need flexibility to serve customers and support internal processes,” he noted.

The higher limit unlocks opportunities in several areas.

Corporate treasurers, for instance, can optimise liquidity by shifting surplus funds between accounts instantly, aided by data-rich ISO 20022 messaging.

Payroll teams stand to benefit too, with faster transfers eliminating the need to prefund accounts and reducing reliance on slower instruments such as cheques.

Businesses could also streamline supplier payments, boosting cash flow and operational efficiency.

In real estate, meanwhile, instant settlement of multi-million-dollar escrow or contractor payments offers transparency and after-hours flexibility.

Importantly, financial institutions will retain discretion to impose lower limits in line with their own risk frameworks. Newly introduced risk management tools, including account activity thresholds, are designed to provide participants with greater oversight and confidence as adoption widens.

With more than 1,400 organisations across all 50 states already connected to FedNow, the latest increase signals the system’s maturing role in modernising the US payments infrastructure.

As real-time payments move up the value chain, the ability to transfer larger sums instantly is set to transform liquidity management and business operations nationwide.