For decades, U.S. business-to-business (B2B) payments were held hostage by the 48-hour ACH cycle and expensive, manual wire transfers. In 2026, that era has officially ended. With the Federal Reserve’s FedNow Service now supporting transaction limits of up to $10 million, the speed of money finally matches the speed of modern commerce.
As of late 2025, over 1,500 financial institutions have integrated with FedNow, creating a ubiquitous network that allows for 24/7/365 liquidity. For merchants, this isn't just a new "payment type"—it's a fundamental shift in how working capital is managed.
1. The $10 Million Milestone: Why it Matters for High-Value Merchants
In November 2025, the Federal Reserve increased the default FedNow transaction limit from $1 million to $10 million. This change was specifically targeted at high-value B2B use cases that were previously restricted to the Fedwire system (which closes on weekends and evenings).
Real Estate & Construction: Escrow funding and contractor payouts can now happen on a Saturday night, ensuring projects aren't delayed by banking holidays.
Wholesale & Supply Chain: Manufacturers can release high-value inventory shipments the moment a FedNow payment clears, rather than waiting for an ACH "settlement file."
2. Request for Payment (RfP): The Death of the Credit Card Fee
The most powerful feature for merchants in 2026 is Request for Payment (RfP). Unlike a standard push payment where the customer initiates the transfer, RfP allows the merchant to send a digital "invoice" directly into the customer's business banking app.
| Payment Method | Standard Fee (Approx) | Settlement Speed | Reconciliation |
|---|---|---|---|
| Credit Card (B2B) | 2.5% – 3.5% | 1–2 Days | Manual/Batch |
| ACH (Same Day) | $0.25 – $1.00 | End of Day | Slow |
| FedNow RfP | $0.01 – $0.10 | Instant (Seconds) | Automated (ISO 20022) |
3. Addressing the "Instant Fraud" Myth
A common concern among B2B treasurers is that instant payments mean "instant theft." However, the 2026 FedNow ecosystem includes Network Intelligence tools that were unavailable at launch:
- Velocity Thresholds: Banks can now set custom limits based on your specific business patterns.
- Scam Classifier Models: A centralized reporting system that flags suspicious routing numbers across the entire Fed network in real-time.
- Non-Reversibility: Unlike ACH, FedNow payments are final. This eliminates the risk of "friendly fraud" where a customer pulls back funds after goods have been shipped.
4. Industry-Specific FedNow Use Cases (2026)
Corporate Payroll
Companies no longer need to "pre-fund" payroll accounts two days in advance. Funds can be moved from a treasury account to a payroll processor on Friday morning and hit employee accounts by Friday afternoon, maximizing interest-bearing liquidity for an extra 48 hours.
Merchant Settlement "De-funding"
Small businesses using modern POS systems can now "de-fund" their daily sales. Instead of waiting for a Tuesday settlement for Sunday sales, FedNow allows for hourly settlements, providing the cash needed to buy fresh inventory or pay hourly staff immediately.
5. Getting Started: The FedNow Integration Checklist
- Verify Bank Readiness: Not every bank supports "Sending"—some only support "Receiving." Ask your merchant service provider for a list of FedNow-certified partner banks.
- Update Accounting Software: Ensure your ERP or accounting system supports **ISO 20022** messaging to take advantage of automated reconciliation.
- Set Your Limits: Work with your bank to set a transaction limit that balances your cash flow needs with your risk appetite.
6. Conclusion
In 2026, the competitive advantage belongs to the merchant who can settle instantly. FedNow has removed the "cost of waiting," allowing B2B businesses to operate with the agility of a startup but the scale of an enterprise.
