# Receiving a FedNow transfer

When a FedNow transfer is sent to your Account,
Increase will immediately confirm it and create a Transaction,
as long as the Account is `open`
and the Account Number is `active` and can receive deposits.
Otherwise,
Increase declines the transfer.
Inbound transfers appear as [Inbound FedNow Transfers](/documentation/api/inbound-fednow-transfers).

## Lifecycle

Inbound FedNow Transfer status lifecycle

| Status               | Description                                                   |
| -------------------- | ------------------------------------------------------------- |
| `pending_confirming` | The transfer is pending confirmation.                         |
| `confirmed`          | The transfer has been received successfully and is confirmed. |
| `declined`           | The transfer has been declined.                               |
| `timed_out`          | The transfer was not responded to in time.                    |
| `requires_attention` | The transfer requires attention from an Increase operator.    |

FedNow gives the receiving bank only seconds to respond,
so Increase confirms or declines a transfer immediately.
A transfer that isn't answered in time ends in `timed_out`.

## Declines

If the destination Account or Account Number can't accept the transfer,
Increase declines it
and the Inbound FedNow Transfer's `decline` object includes a
[`reason`](/documentation/api/inbound-fednow-transfers#inbound-fednow-transfer-object.decline.reason),
such as the Account Number being disabled or the Account not being enabled for FedNow.

If you'd like to programmatically approve or decline inbound FedNow transfers using webhook Events,
please reach out to support@increase.com.

## Testing in the sandbox

You can simulate receiving a FedNow transfer in the sandbox with the
[Create an Inbound FedNow Transfer](/documentation/api/inbound-fednow-transfers#sandbox-create-an-inbound-fednow-transfer) simulation endpoint.
Pass the `account_number_id` you'd like to receive funds for and an `amount` in USD cents.
If you have an [Event Subscription](/documentation/api/event-subscriptions) configured,
this also fires the corresponding `inbound_fednow_transfer.created` and `inbound_fednow_transfer.updated` webhooks.