Sept. 12, 2024 – The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, today announced the release of its latest publication, Operational Considerations for Receiving Instant Payments. This comprehensive guideline provides essential insights and best practices for financial institutions (FIs) as they navigate the complex landscape of instant payments. With contributions from industry experts, the guideline aims to help FIs enhance their operational readiness for real-time payments, including RTP® and FedNow®.
As instant payments continue to transform the payments ecosystem, financial institutions face unique challenges in adapting their systems and processes to this new real-time paradigm. The new guideline, developed by the FPC’s Operational Considerations Work Group, sponsored by Endava, dives deep into the practical considerations FIs must address to successfully implement instant payments, from liquidity management to fraud mitigation, business continuity, and staffing requirements.
“Chairing the Operational Considerations Work Group has been a huge opportunity for me in ways that I hadn’t even imagined when I took it on. The expertise around the room is showcased in this deliverable where we really delve into details around FIs moving into receiving instant payments,” said Miriam Sheril, Head of Product – US at Form3. “Where the primer we published last October talked about what a financial institution needs to consider, this guideline discusses how to solve these items. I truly think this will be a huge asset to banks as they make their journey into the world of RTP and FedNow.”
In particular, the guideline outlines operational differences that financial institutions need to understand, including how real-time payment networks differ from traditional ACH and wire transfers. These key distinctions provide the foundation for institutions to modernize their payment operations and enhance their ability to receive instant payments with the speed and certainty that today’s environment demands.
“With a lot of the discussions around instant payments focused on the networks and use cases, our efforts are aimed to help financial institutions get more comfortable and prepared for supporting the system from a back-office perspective,” said Tony Cook, Executive Vice President – Payment Operations at FirstBank and Vice Chair of the Operational Considerations Work Group. “It’s important to recognize the differences and subtleties of instant payments and what FIs should consider for their implementation.”
This new guideline offers institutions a roadmap for achieving operational excellence in supporting real-time payments, ensuring they are equipped to handle the nuances of 24x7x365 operations, fraud prevention, and customer support.
“As the adoption of instant payments accelerates, it’s crucial for financial institutions to understand the operational challenges and opportunities they present,” said FPC Executive Director Reed Luhtanen. “This guideline offers valuable direction to help financial institutions navigate the complexities of implementation and deliver on the promise of faster, more secure payments for their customers.”
The Operational Considerations for Receiving Instant Payments guideline is now available for download from the FPC's Faster Payments Knowledge Center.
The FPC prioritizes inclusion of diverse perspectives in tackling complex topics such as interoperability, identifying real-world solutions that can ease adoption of faster payments, managing security risks and fraud threats, addressing barriers to financial inclusion and cross-border payments, and more, as the organization paves the way toward a future of faster payments for all.
For more information on the FPC, its current work efforts or to join, visit FasterPaymentsCouncil.org.
Contact:
Elizabeth Grice
U.S. Faster Payments Council
720-737-7368
egrice@fasterpaymentscouncil.org
About the U.S. Faster Payments Council (FPC)
The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit FasterPaymentsCouncil.org.