‘Three day wait’ for checks to clear could speed up
By Martha C. White
The Federal Reserve on Monday announced plans to develop a new real-time payment system that will let consumers clear paychecks, bill payments, and money transfers much faster. When the new “FedNow Service” is launched, the standard “three day wait” for a check to clear could become a thing of the past for both households on a tight budget or small businesses who need to pay vendors and make payroll. …”The longer it takes for payments to move, the longer it takes for us to get paychecks, for small businesses to get funds,” said Karen Shaw Petrou, managing partner of consulting firm Federal Financial Analytics. “It’s costly because people run overdrafts or take out short-term loans, and it’s economically inefficient,” she said.