This is the second increase in transaction limits to occur in 2025. The limit was increased in June 2025 from $500,000 to $1m
Federal Reserve Financial Services (FRFS) announced an expansion of the FedNow Service on September 9, raising its network transaction limit from $1 million to $10 million, effective November 2025.
In a statement, the payment service said the change was in response to the escalating commercial demand for instant payments. The increase marks the second transaction limit adjustment this year, highlighting the rapid adoption and evolving needs of the instant payments landscape since the FedNow Service’s launch.
“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,” stated Mark Gould, chief payments executive for Federal Reserve Financial Services.
“The FedNow Service is shaping how we move money, and the service will continue to be flexible to meet evolving feedback and increasing demand.”
Driving high-value FedNow use cases
The elevated transaction cap positions the FedNow Service to change how businesses manage their finances, enabling a suite of high-value applications:
- Companies can now execute instant transfers between internal business accounts, maximizing investment of excess cash, freeing up working capital, and streamlining reconciliation through data-rich ISO® 20022 messaging.
- The ability to instantly transfer funds between an organization’s internal accounts or to its payroll processor facilitates faster funding, negates the need for pre-funding payroll accounts, and eradicates reliance on slower, less efficient payment methods like checks.
- Businesses can pay suppliers instantly for inventory or services, leading to improved cash flow management, enhanced operational efficiency, and optimized liquidity.
- High-dollar commercial real estate payments, such as escrow account funding and contractor disbursements, will benefit from immediate clearing and settlement. This provides unparalleled certainty of funds, enables after-hours and weekend payments, and boosts transparency throughout the process.
The broader impact
The FedNow Service, developed by the Federal Reserve Banks, was launched to provide nationwide access to instant payment services for financial institutions of all sizes, 24 hours a day, every day of the year.
Through participating financial institutions, businesses and individuals can send and receive payments instantly, with recipients gaining immediate access to funds. This capability enhances financial flexibility and facilitates time-sensitive payments. Access to the service is provided through the Federal Reserve’s FedLine network, which connects over 9,000 financial institutions.
This latest change comes as recent studies from Federal Reserve Financial Services indicate a rapid adoption of digital, faster, and instant payment services among US businesses and consumers. Digital wallet usage, in particular, saw a robust 31% increase for businesses and a 32% increase for consumers in 2023, signaling a clear shift in payment preferences.
While the network limit increases, financial institutions retain the flexibility to set lower transaction limits based on their internal risk parameters and business needs. Furthermore, recently introduced risk mitigation tools, such as account activity thresholds, empower participants with greater control and confidence as they expand their instant payment offerings.
With over 1,400 participating organisations across all 50 states, the FedNow Service is rapidly modernising the US payments infrastructure.
