Faster Payments Resources

What are faster payments?

“Faster payments” is an umbrella term used in the financial services industry that indicates increased speed, convenience, and accessibility as essential features for the future of payment and settlement systems.

Faster payment networks are evolving in an ever-increasing pace - whether ‘instant’ payment alternatives, same-day ACH, or other faster payments options. The pandemic has accelerated the need for contactless payments, faster payments, and the rapid rate of growth of digitalization. It is important for credit unions and their members to understand both the opportunities and risks associated with each payment option. Creating faster payment solutions for members will allow them to receive increased flexibility and transparency into the status of payments, improved cash flow, and provide better money management. In return, credit unions can better serve their members with multiple benefits to streamline processes and increase convenience. The faster payments vision will support payments for all combinations of payor and payees including person to person (P2P), person to business (P2B), business to person (B2P), business to business (B2B), government payments, point of sale (POS), and more.

Along with these opportunities comes increased risk of fraudulent payments, especially with faster payment solutions designed as final, irrevocable and immediate settlement. This risk can be mitigated with education and fraud fighting tools. The journey to faster payments will include rule-making, regulatory, and operating procedure changes.

Corporate Central is engaging with several entities related to faster payments to provide credit unions with the necessary resources and solutions to serve their members. Corporate Central is a member of the Faster Payments Council (FPC), an industry-led membership organization focused on collaborative, problem-solving to encourage broad faster payments adoption across the U.S. payment system. Corporate Central is also participating in the FedNow^SM pilot program and will continue sharing important information with our members from our experience in the program. We look forward to collaborating with members on opportunities to leverage early access to the FedNow^SM technology and functionality. We are also subscribed to the FedNow Community which offers regular communications and ‘first look’ announcements access to information and working groups.

Resources:

The Federal Reserve Bank (FRB) is developing an instant payment service to enable financial institutions of every size, and in every community across the U.S., to provide safe and efficient instant payment services in real time, around the clock, every day of the year.

Learn More About FedNow^SM Service

Prepare for the FedNow^SM Service

View the FedNow^SM Preplanning Checklist

As part of the FedNow^SM Community site, the FRB rolled out a knowledge base with content and tools related to the FedNow^SM service and general faster payments information.

View FedNow^SM Explore

Additionally, the FRB has developed educational resources and articles related to “faster payments,” and “instant, or real-time, payments.” Topics covered include how different kinds of faster payment transaction process; what payers, payees, and their financial services providers need to do make these kinds of payments; and why now is the time to consider adopting some type of faster payment options.

Learn More About Instant Payments

The U.S. Faster Payments Council (FPC) is an industry-led membership organization established so Americans can safely and securely pay anyone, anywhere, at any time, and with near-immediate funds availability. FPC members use private-sector approaches to address issues that inhibit adoption of faster payments and enable end users to reach each other in ways as seamless and transparent to them as mobile texting.

Learn More About the Faster Payments Council

The Faster Payments Playbook was developed by NACHA, The U.S. Faster Payments Council, and Payments Innovative Alliance. The playbook covers an introduction to faster payments, how to prepare your credit union for change, how to develop a faster payment strategy, how to communicate your strategy, and how to develop your internal communication plan.

Read the Faster Payments Playbook

Questions credit unions must consider...

• If payments are real-time, how will my credit union handle funds availability, funds transfers, and member lines of credit?
• What are my credit union’s system integration requirements for real-time payments?
• What manual employee tasks must now become real-time computer tasks?
• What employee decisions must now become real-time computer decisions?
• What real-time payment features might the competition offer?

Next steps:

1. Consider joining the FedNow Community
2. Bookmark this page for important updates
3. Call Corporate Central and your trusted credit union service providers with questions