San Diego, CA.-- Good Funds transactions are "Credit Push" versus "Debit Pull." A credit push "payment order" is simply the form of communication that the parties to a funds transfer agree to use. The payment order's salient characteristics are that it calls for an unconditional payment of money from the sender to the beneficiary and that it is transmitted to a receiving bank. [See UCC Article 4A]
Interesting note: the term “Wire” is found nowhere in the UCC § 4A. The legal term is: “Payment Order”. Persons have used the term “Wire” when referring to a “Payment Order” transaction.
Good Funds Wires © are real-time intra-bank / interbank payments defined and used for, “Wires” / “Payment Orders” as defined in UCC § 4A and are not ACH transactions.
Real-Time Good Funds, is defined simply as: Collected funds in a bank account and usable immediately by the owner of the account. Our "Good Funds" payment gateway allows for instant real-time digital payments that are immediate, irrevocable, intra-bank and/or interbank account-to-account (A2A) transfers that utilize a real-time messaging system connected to every transaction participant through all U.S.-based financial institutions. Funds are available for use by the receiver and real-time confirmation is provided to both you ("the sender") and receiver in seconds. Most Good Funds transactions are "Credit Push" versus "Debit Pull."
Authentication and Authorization in these processing platforms are such that all participants, both senders and receivers, should have confidence in the veracity, timeliness and irrevocability of the funds transferred. These (near) real-time payment systems provide advancements over the legacy systems, e.g.; the Sender does not need to know the bank account number of the recipient, the Confirmation of “Good Funds” is made at the initiation of the payment, the Sender and Receiver receive timely notification that the payment has been made and accepted, and Funds are debited from the Payer and made available in (near) real-time to the payee. These platforms allow for real-time digital payments that are immediate, irrevocable, intra-bank and/or interbank account-to-account (A2A) transfers that utilize a real-time messaging system connected to every transaction participant through all US-based financial institutions. Funds are available for use by the receiver and real-time confirmation is provided to both the Sender and Receiver in seconds.
Payment Orders are defined as, “an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary.” UCC § 4A-103 (2013)
Some provisions of the UCC conflict with provisions of the Electronic Fund Transfer Act (EFTA), limiting application of the UCC to those features of electronic fund transfers not covered under the EFTA. Consequently, states that have adopted the UCC, primarily pertain to wire transfers. Cancelling or revoking a payment order ordinarily requires the originator, or sender, to communicate its decision, “at a time and in a manner affording the receiving bank a reasonable opportunity to act on the communication before the bank accepts the payment order.” In practice, the receiving bank “accepts the payment order” when funds are deposited into the account(s) of the receiving beneficiary.
Finality & Irrevocability
UCC § 4A-103 ("Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if: (i) the instruction does not state a condition to payment to the beneficiary other than time of payment;….. Under Article 4A, "acceptance" by the beneficiary's bank is a central concept leading to the determination of "finality of payment." Subject to specified narrow exceptions, acceptance by the beneficiary's bank is either by (i) payment or advice to the beneficiary, or (ii) by receipt of payment from its sender.
Good Funds Wires © wire fund transfers fully comply with applicable law, UCC § 4A, for “Finality & Irrevocability” of funds received for real estate related transactions:
A receiving bank accepts a payment when one of the following has occurred:
A receiving bank (financial institution) other than the Sender's bank executes a payment order; or
The beneficiary’s bank pays the beneficiary (i.e. deposits funds into the Receiver’s/Beneficiary’s account); or
The beneficiary’s bank notifies the beneficiary that it has received the order, or credited the account of the beneficiary, unless the notice indicates that the bank is rejecting the order or that the order’s funds may not be withdrawn or used until receipt of the sender’s payment; or
The beneficiary’s bank receives payment of the entire amount of the originator's order; or
The bank opens the next funds transfer business day following the payment date of the order. Opening the next funds transfer business day is acceptance if, at that time, the amount of the sender's order is fully covered by a withdrawable credit balance in an authorized account of the sender, or the bank has otherwise received full payment from the sender, unless the order was rejected before that time or is rejected within (i) one hour after that time, or (ii) one hour after the opening of the next business day of the sender following the payment date if that time is later.
After a Payment Order is accepted, the sender cannot cancel or amend the order unless the sending bank and the beneficiary’s bank agree to permit revocation.
About Today Payments
Today Payments is a leader in the evolution of immediate payments. We were years ahead of competitors recognizing the benefits of Same-Day ACH and Real-Time Payments funding through Same-Day / Real-Time Direct Deposits ( Push Payment ) and Same-Day / Real-Time Direct Payments ( Debit Pull Payments ). Our customers receive faster availability of funds on deposited items and instant notification of items presented for deposit all based on real-time activity. Dedicated to providing superior customer service and industry-leading technology. Our platform with its tools / widgets help organizations of all sizes reduce transaction costs, mitigate risk and increase efficiencies. Our system ensures proper Authentication, Authorization, Verification, Settlement, Notifications and Postings. For more information, visit TodayPayments.com.
Fedwire® The Federal Reserve Wire Network (Fedwire®): Fedwire® is a funds transfer service, “that enables participants to initiate funds transfers that are immediate, final, and irrevocable once processed.” Fedwire® debits the Federal Reserve Bank account of the sending bank and credits the Federal Reserve Bank account of the receiving bank. Because the Federal Reserve restricts account holders to financial institutions, Fedwire® ® is only available to financial institutions, such as banks and credit unions, who may make wire transfers on behalf of their banking customers.