The US Faster Payments Council (FPC) has released ‘Operational Considerations for Receiving Instant Payments’, a guideline for FIs on instant payments, including RTP and FedNow. FPC’s Operational Considerations for Receiving Instant Payments offers 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. Helping FIs adapt to instant payments challenges 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.

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 modernise their payment operations and enhance their ability to receive instant payments with the speed and certainty that the environment demands. Roadmap for excellence in real-time payments 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.

Officials from FPC said that as the adoption of instant payments accelerates, it’s crucial for financial institutions to understand the operational challenges and opportunities they present. 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 FPC prioritises 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.

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