Recurring FedNow Commissions
Using Recurring FedNow Commissions
Recurring FedNow Commissions and recurring Real-Time instant payments, are defined simply as: Irrevocably collected funds in a Payee bank account and usable immediately by the owner of the account. An upfront on-time 'standing approval' using Recurring FedNow Commissions is an instruction or set of instructions a Payer uses to pre-authorize their financial institution to pay future Request for Payments, RfPs without requiring the Payer to review and approve each RfP.
Attributes of FedNow Commissions
Integrating GoodFundsGateway.com with QuickBooks Online (QBO) to utilize the FedNow service for paying commissions to agents using their cell phone numbers or email addresses as "nicknames" or "monikers" for receiving instant real-time payments can significantly enhance the payment process. Here's a comprehensive guide to implementing this system:
Implementation Plan
1. Setup GoodFundsGateway.com Integration
- Account Creation: Register and set up an account on GoodFundsGateway.com.
- API Integration: Use the GoodFundsGateway.com APIs to integrate with QuickBooks Online (QBO) for seamless data synchronization.
2. Configure FedNow Payments with Nicknames
- User Identification: Allow agents to register their cell phone numbers or email addresses as their unique identifiers (nicknames/monikers).
- Link Nicknames to Bank Accounts: Ensure agents link their nicknames to their bank accounts within the GoodFundsGateway.com platform.
3. Enable Real-Time Payment Requests
- Request for Payment (RfP): Implement a system where businesses can send an RfP to agents using their registered nicknames.
- Payment Approval: Ensure agents can easily approve payment requests via their cell phone or email.
4. Integration with QuickBooks Online (QBO)
- Sync Payments: Configure the integration to automatically record all payments processed through GoodFundsGateway.com in QBO.
- Automate 1099 Tracking: Track all commission payments automatically, associating them with the respective agent’s nickname for easy 1099 reporting.
Workflow Example
1. Agent Registration and Setup
- Agent Registration: Agents sign up on GoodFundsGateway.com using their cell phone number or email address as their nickname.
- Bank Account Linking: Agents link their bank accounts to their nicknames on GoodFundsGateway.com.
2. Initiating Payments
- Business Sends RfP: The business sends an RfP to the agent's nickname (cell phone number or email address) through GoodFundsGateway.com.
- Agent Approves Payment: The agent receives a notification on their cell phone or email and approves the payment.
3. Real-Time Payment Processing
- Instant Transfer: Funds are instantly transferred via FedNow from the business’s account to the agent’s account.
- Confirmation: Both the business and the agent receive confirmation of the payment.
4. Automated Accounting in QBO
- Automatic Recording: Payment details are automatically recorded in QBO, updating the business’s accounts payable and the agent’s income records.
- 1099 Reporting: The system tracks all payments to agents, simplifying 1099 generation at the end of the fiscal year.
Benefits
- Efficiency and Speed: Real-time payments ensure agents receive their commissions instantly, improving cash flow.
- Convenience: Using cell phone numbers or email addresses simplifies the payment process for agents.
- Accurate Accounting: Automated synchronization with QBO ensures accurate and up-to-date financial records.
- Regulatory Compliance: Streamlined tracking and reporting facilitate compliance with tax regulations.
Security Considerations
- Data Encryption: Encrypt all sensitive data, such as cell phone numbers, email addresses, and bank details.
- Authentication: Implement robust authentication mechanisms to protect against unauthorized access.
- Fraud Monitoring: Use advanced monitoring tools to detect and prevent fraudulent transactions.
Implementation Steps
- Technical Integration:
- Collaborate with your IT team or a third-party developer to integrate GoodFundsGateway.com with QBO using the provided APIs.
- Ensure the integration supports FedNow and the use of nicknames for payment processing.
- User Training:
- Train your accounting and finance team on using the new system.
- Provide agents with detailed instructions on how to register and link their bank accounts.
- Testing:
- Conduct thorough testing to ensure payments are processed correctly and data is accurately synced with QBO.
- Test the RfP process and payment approval workflow with a small group of agents before full rollout.
- Launch and Support:
- Roll out the system to all agents and provide ongoing support to address any issues.
- Continuously monitor the system for performance and security, making necessary adjustments.
Detailed Workflow
- Agent Registration:
- Agents visit GoodFundsGateway.com and register using their cell phone number or email address.
- During registration, agents link their preferred bank account to their nickname.
- Sending RfP:
- When a commission payment is due, the business initiates an RfP through GoodFundsGateway.com.
- The RfP is sent to the agent’s registered nickname (cell phone number or email).
- Approval and Payment:
- The agent receives a notification via SMS or email and approves the payment.
- Upon approval, FedNow processes the payment instantly, transferring funds to the agent’s linked bank account.
- Accounting Integration:
- GoodFundsGateway.com automatically records the transaction in QBO.
- The system updates the agent's earnings and the business's expense records.
- Reporting and Compliance:
- The integration tracks all payments and facilitates easy 1099 generation.
- Detailed transaction records are maintained for compliance and audit purposes.
By utilizing GoodFundsGateway.com to pay commissions via FedNow using agents' cell phone numbers or email addresses as nicknames, businesses can achieve a highly efficient and secure payment process, improving both operational efficiency and agent satisfaction.
Creation Recurring Request for Payment
We were years ahead of competitors recognizing the benefits of RequestForPayment.com. We are not a Bank. Our function as a role as an "Accounting System" in Open Banking with Real-TimePayments.com to work with Billers to create the Request for Payment to upload the Biller's Bank online platform. Today Payments' ISO 20022 Payment Initiation (PAIN .013) shows how to implement Create Real-Time Payments Request for Payment File up front delivering a message from the Creditor (Payee) to it's bank. Most banks (FIs) will deliver the message Import and Batch files for their company depositors for both FedNow and Real-Time Payments (RtP). Once uploaded correctly, the Creditor's (Payee's) bank continues through a "Payment Hub", either FedNow or RTP, will be the RtP Hub will be The Clearing House, with messaging to the Debtor's (Payer's) bank.
ACH and both Instant and Real-Time Payments Request for Payment
ISO 20022 XML Message Versions
The versions that
NACHA recommends for the Request for Payment message and the Response to the Request are pain.013 and pain.014
respectively. Version 5 for the RfP messages, which
The Clearing House Real-Time Payments system has implemented, may also be utilized as
there is no material difference in the schemas. Predictability, that the U.S. Federal Reserve, via the
FedNow ® Instant Payments, will also use Request for Payment. The ACH, RTP ® and FedNow ® versions are Credit Push Payments.
Payees ensure the finality of Instant Real-Time
Payments (IRTP) and FedNow using recurring Requests for
Payments (RfP), Payees can implement certain measures:
1.
Confirmation Mechanism:
Implement a confirmation mechanism to ensure that each
payment request is acknowledged and confirmed by the payer
before the payment is initiated. This can include requiring
the payer to provide explicit consent or authorization for
each recurring payment.
2.
Transaction Monitoring:
Continuously monitor the status of recurring payment
requests and transactions in real-time to detect any
anomalies or discrepancies. Promptly investigate and resolve
any issues that arise to ensure the integrity and finality
of payments.
3.
Authentication and
Authorization: Implement strong
authentication and authorization measures to verify the
identity of the payer and ensure that only authorized
payments are processed. This can include multi-factor
authentication, biometric verification, or secure
tokenization techniques.
4.
Payment Reconciliation:
Regularly reconcile payment transactions to ensure that all
authorized payments have been successfully processed and
finalized. This involves comparing transaction records with
payment requests to identify any discrepancies or
unauthorized transactions.
5.
Secure Communication Channels:
Utilize secure communication channels, such as encrypted
messaging protocols or secure APIs, to transmit payment
requests and transaction data between the payee and the
payer. This helps prevent unauthorized access or
interception of sensitive payment information.
6.
Compliance with Regulatory
Standards: Ensure compliance with
relevant regulatory standards and guidelines governing
instant payments and recurring payment transactions. This
includes adhering to data security requirements, fraud
prevention measures, and consumer protection regulations.
By implementing these measures, Payees can enhance
the finality and security of Instant Real-Time Payments
using recurring Requests for Payments, thereby minimizing
the risk of payment disputes, fraud, or unauthorized
transactions.
Each day, thousands of businesses around the country are turning their transactions into profit with real-time payment solutions like ours.
Contact Us for Request For Payment payment processing