Recurring FedNow instant transactions

For Recurring FedNow instant transactions, where payments occur repeatedly over a set period, both the payee (the entity receiving payment) and the payer (the entity making payment) need specific elements to ensure seamless processing. Here's how these elements might look for both parties:

Payee Side (Receiving Payment):

1. Payment Request Identifier: A unique identifier assigned to each recurring payment request, allowing for tracking and management of individual transactions within the series of payments.
2. Payment Amount: The fixed or variable amount to be received for each recurring transaction. This amount may remain constant for each payment or vary based on specific criteria.
3. Payment Frequency: The interval at which payments are expected, such as daily, weekly, monthly, or custom intervals. This determines the schedule for recurring transactions.
4. Payment Start Date: The date on which the recurring payments will commence. This ensures that payments begin at the designated time.
5. Payment End Date (if applicable): The date on which the recurring payments will cease. This is optional and may be specified if there is a predetermined end to the payment schedule.
6. Payment Instructions: Any specific instructions or details provided by the payee regarding the recurring payments, such as account information or payment terms.

Payer Side (Making Payment):

1. Authorization: Confirmation from the payer indicating their consent to initiate the recurring payments as requested. This authorization may be provided upfront for the entire series of payments or may be required for each individual transaction, depending on the agreement between the payer and payee.
2. Payment Frequency: The interval at which payments will be made, corresponding to the frequency specified by the payee. The payer ensures that payments are initiated according to the agreed-upon schedule.
3. Payment Amount: The fixed or variable amount to be paid for each recurring transaction. The payer ensures that the correct amount is transferred for each payment.
4. Payment Start Date: The date on which the recurring payments will commence, as specified by the payee. The payer initiates payments starting from this date.
5. Payment End Date (if applicable): The date on which the recurring payments will cease, if specified by the payee. The payer ensures that payments are not initiated beyond this end date.
6. Payment Execution: The actual transfer of funds from the payer's account to the payee's account for each recurring transaction. This may occur automatically according to the agreed-upon schedule.

By incorporating these elements into Recurring FedNow instant transactions, both the payee and the payer can effectively manage and process payments over time, ensuring accuracy, efficiency, and compliance with the agreed-upon payment terms.