CASH MANAGEMENT · SETTLEMENT SERVICES · FEDNOW

FedNow® Service Settlement

PCBB is a certified FedNow Service provider offering settlement and liquidity services to community financial institutions (CFIs). PCBB’s settlement service works with any core banking system, so no integration or migration is required.

Why PCBB for FedNow Service Settlement
Real-time settlement
Works with any core banking system
12hr live support from 8am ET to 8pm ET
24/7 send and receive payments

Executive Summary

As both a settlement agent and liquidity provider for the FedNow Service, PCBB enables community financial institutions to process faster payments by handling full settlement on their behalf. This approach eliminates the need for institutions to build or maintain their own settlement infrastructure, allowing them to focus on strategic priorities.

How PCBB’s Settlement for FedNow Service Works

When institutions evaluate FedNow Service settlement providers, they often want to know what implementation will look like in practice. The biggest concern is usually how much internal work will be needed to support the service.

PCBB’s services are designed to simplify the settlement process, allowing your institution to focus on offering instant payments rather than managing the operational complexities behind them.

At a Glance

  • No core system changes or new infrastructure required
  • Your institution selects a front-end provider for the FedNow Service application experience
  • PCBB manages transaction settlement and posting through the Correspondent Bank Connection (CBC) platform

The Process

You can use the FedNow Service with PCBB’s settlement services without changing your core banking system or building new internal infrastructure. PCBB works with your current core system, so you do not need to integrate any third-party systems.

By managing settlement on your behalf, PCBB helps simplify payment operations and liquidity management. This allows your team to stay focused on customers rather than backend work.

For many teams, it makes getting started feel much more manageable and reduces some of the friction that can slow things down.

Get Started with the FedNow Service Using PCBB as Your Settlement Provider

No third-party integrations necessary

Select front-end provider for the FedNow application

PCBB handles your transaction, posting them to Correspondent Bank Connection (CBC) platform

What You Get

PCBB provides the support you need to process FedNow Service transactions in your day-to-day operations.

  • Settlement and liquidity management through our Correspondent Bank Connection platform
  • Real-time visibility into transactions, with access to daily activity and reporting
  • 24/7/365 instant payment capability for your customers
  • Real-time settlement without batching or processing delays
  • Reporting delivered in a format that supports reconciliation and internal workflows

Your team can monitor activity, review transactions, and keep records up to date without building custom reporting. It fits into your existing workflows, so managing FedNow Service does not become another manual process to keep on top of.

Ongoing Support

  • Settlement and liquidity management
  • Real-time transaction visibility
  • 24/7/365 instant payments
  • No batching or processing delays

Why Choose PCBB for FedNow Service Settlement

PCBB’s settlement and liquidity solutions for the FedNow Service was built specifically for how community financial institutions operate. PCBB has been integral to the development of faster payments, having been a pilot participant in the FedNow Service, an original member of the Faster Payments and Secure Payments Task Forces.

PCBB is the ideal settlement provider for the FedNow Service because:

  • It is both a settlement agent and liquidity provider
  • Works with your existing core instead of locking you into a specific integration
  • Support is available across US time zones
  • Offers live support, not robots

For many institutions, the decision comes down to how much support is included and how much responsibility remains in-house. PCBB is structured to manage operational components that would otherwise require internal resources, reducing complexity over time.

Connect with FedNow

Why Instant Payments Matter for CFIs

Customer expectations around payments have shifted, with faster access to funds and availability outside standard banking hours becoming the baseline. That change is putting pressure on institutions to keep up, especially when larger banks and fintech providers already offer real-time payment options.

At the same time, FedNow Service adoption continues to grow as more institutions join the network and begin offering these services. It’s not happening all at once, but participation is steadily increasing. PCBB was involved early in the development of faster payments, including serving as a pilot bank in the FedNow Service solution, and that experience carries over into how the service is structured and supported today.

For community financial institutions looking to move forward, the focus usually turns to implementation. The question becomes how to adopt instant payments without adding unnecessary operational strain. PCBB is built to support that transition and keep the process manageable for your team.

Your Payments Strategy Starts with the Right Partner

Offering faster payments is only one piece of a modern payments strategy. Financial institutions also need efficient settlement, liquidity management, domestic and international payment capabilities, and a correspondent bank that understands how those services work together.

PCBB brings those capabilities together through one relationship. We support settlement for the FedNow Service, RTP® network, ACH, and wire payments, while providing centralized visibility through our Correspondent Bank Connection (CBC) platform, liquidity management solutions, and experienced operational support.

Whether your institution is expanding into real-time payments or looking to simplify existing payment operations, PCBB helps you manage traditional and emerging payment rails with greater efficiency, fewer operational burdens, and the responsive service community financial institutions have relied on for more than 25 years.

Frequently Asked Questions

The FedNow Service is a Federal Reserve payment rail that allows financial institutions to send and receive payments instantly, 24/7/365. It supports real-time settlement and provides an alternative to traditional batch-based payment processing.

How your institution can prepare for the FedNow Service is by first choosing a front-end provider and reviewing your current processes. From there, it’s about deciding how settlement and liquidity will be handled and how real-time payments fit into your existing workflows. Read the FRB’s Readiness Guide to learn more.

To participate in the FedNow Service, institutions need to work with a settlement service provider, like PCBB, that can accept full settlement on their behalf. This includes establishing the necessary infrastructure to handle transactions and guaranteeing operational readiness.

  1. The first component to consider is the interface that your financial institution account holders will use to process payments. This interface will need to have the ability to process payments on behalf of the account holders, including posting the debits and credits necessary to have the accounts reflect the transaction, as well as communicate with the FedNow Service, all in real time. Due to the real time requirement, most financial institutions will leverage the infrastructure already in place with either their core or a third-party payment provider who has this integration, such as their mobile or online banking provider.
  2. The second component to consider is how to settle transactions. Larger financial institutions will typically have the transactions settle through their master account at the FRB. Most community financial institutions will partner with a correspondent bank, such as PCBB, to have those items settle through the master account of the correspondent bank.

Yes, PCBB provides correspondent services through the FedNow Service. PCBB takes on the role of both a settlement agent and a liquidity provider, supporting the settlement of transactions 24x7x365 within the network.

  1. Payments will be settled in PCBB’s master account at the FRB, and then PCBB posts the individual items to the customer accounts.
  2. The partnership between PCBB and its customer eliminates the need for the community financial institution to monitor their account balance at the FRB 24x7x365. Since each transaction will be posted to the institution’s account at PCBB, it will be easy to reconcile the payments with our reporting system.
  3. In this instance if an institution does not have sufficient funds at their PCBB account, a credit facility will be provided by PCBB to cover the transactions, ensuring that all transactions are able to be settled.

No. PCBB’s online platform for Settlement works with any banking core system and does not require integration of third-party systems. It is designed to work alongside your existing systems.

PCBB supports all transaction types and use cases, including account-to-account transfers, business payments, and other real-time payment scenarios supported by FedNow Service. Institutions can determine which use cases align with their strategy.

  1. To get started, we always recommend first reading the FRB’s Readiness Guide.
  2. Speak with your PCBB Regional Manager to answer any questions you may have. PCBB can walk you through the specifics of the transaction flow between your institution, FedNow and PCBB.
  3. You will want to establish an anticipated timeline to begin using the payments service and discuss that timeline with your PCBB Regional Manager.
  4. Depending on the services you already use at PCBB, you may need to complete additional paperwork to get started. This can be done in advance of your anticipated go-live date.

There are several resources available to learn more about the FedNow Service.

FRB Services

PCBB Services

Get Started with the FedNow Service Through PCBB

If your institution is evaluating FedNow Service, the next step is to understand how it fits into your operations and what an implementation would look like in practice.

PCBB can walk your team through the process, answer questions about settlement and liquidity, and help you determine the right approach based on your setup.