# Sending a FedNow transfer

[FedNow transfers](/documentation/api/fednow-transfers) can be sent at any time during the day
and funds will settle within seconds.
However,
not every institution is reachable on FedNow.
You can use the [Routing Numbers API](/documentation/api/routing-numbers) to confirm whether an institution supports FedNow,
and fall back to [ACH](/documentation/sending-ach-transfers) or [wire](/documentation/sending-wire-transfers) when it doesn't.

## Lifecycle

Outbound FedNow Transfer status lifecycle

| Status               | Description                                                            |
| -------------------- | ---------------------------------------------------------------------- |
| `pending_approval`   | The transfer requires approval from a member of your team.             |
| `pending_reviewing`  | The transfer is pending review by Increase.                            |
| `pending_submitting` | The transfer is queued to be submitted to FedNow.                      |
| `pending_response`   | The transfer has been submitted and is pending a response from FedNow. |
| `complete`           | The transfer has been sent successfully and funds have settled.        |
| `canceled`           | The transfer has been canceled.                                        |
| `reviewing_rejected` | The transfer was rejected by Increase during review.                   |
| `rejected`           | The transfer was rejected by the network or the recipient's bank.      |
| `requires_attention` | The transfer requires attention from an Increase operator.             |

## Sending a FedNow transfer with Increase

Originating a FedNow transfer through the Increase API involves you, Increase, FedNow, and the receiving bank.

1. You make a `POST /fednow_transfers` call with the
   [details](/documentation/api/fednow-transfers#create-a-fednow-transfer)
   of how much you'd like to send and data about the recipient.
   A FedNow Transfer is created with a status of `pending_submitting`.
2. A Pending Transaction is immediately created for the full amount of the transfer in order to hold funds.
3. When the message is submitted to FedNow (usually within seconds),
   Increase updates the FedNow Transfer object with its `submission`
   [details](/documentation/api/fednow-transfers#fednow-transfer-object.submission),
   including the network `message_identification`,
   and the status is updated to `pending_response`.
4. FedNow forwards the transfer details to the receiving bank.
   The receiving bank responds with an acknowledgement.
   Once the acknowledgement is received,
   funds are settled instantly
   and the FedNow Transfer object status updates to `complete`.
5. A Transaction is immediately created for the full amount of the transfer
   and funds are removed from your Account.
   The Pending Transaction is marked as `complete`.
6. If the network or the receiving bank is unable to complete the transfer,
   it responds with a rejection
   and the transfer status updates to `rejected`.
   The FedNow Transfer object is updated with its `rejection` [details](/documentation/api/fednow-transfers#fednow-transfer-object.rejection),
   the Pending Transaction is marked as `complete`,
   and no additional Transactions are created on your Account.

The entire process usually completes within seconds.
Each transfer carries a
[`unique_end_to_end_transaction_reference`](/documentation/api/fednow-transfers#fednow-transfer-object.unique_end_to_end_transaction_reference)
(UETR) that identifies it across the network.

## Approvals

For transfers that require approval from another team member,
the FedNow Transfer is created with a status of `pending_approval`
and a Pending Transaction is created to hold funds.

If the transfer is approved,
the status is changed to `pending_submitting`
and things progress normally.

If the transfer is not approved,
the status is changed to `canceled`.
The Pending Transaction status updates to `complete`,
no transfer information is submitted,
and no additional Transactions are created.

## Reviews

Occasionally a FedNow Transfer needs to be manually reviewed by an Increase operator.
When this happens the status is set to `pending_reviewing`.
Once reviewed,
the status changes to `pending_submitting`
and the transfer progresses normally.

## Rejections

A transfer can be rejected in two ways.

Rarely,
Increase rejects a transfer during review.
The status updates to `reviewing_rejected`,
nothing is submitted to the network,
and no additional Transactions are created.

More often,
FedNow or the receiving bank rejects a transfer after submission.
The status updates to `rejected`
and the FedNow Transfer's `rejection` object includes a `reject_reason_code`.
These codes map to the network's ISO 20022 reason codes,
so you can show your user a precise reason.
Common reasons are that the destination account is closed (`account_closed`, FedNow code `AC04`),
does not exist (`invalid_creditor_account_number`, `AC03`),
or that the amount is higher than the recipient is authorized to receive (`amount_exceeds_bank_limits`, `E990`).

See the [API reference](/documentation/api/fednow-transfers#fednow-transfer-object.rejection.reject_reason_code) for the full list.