U.S. Faster Payments Council Releases Instant Payments Operational Guidelines

The U.S. Faster Payments Council (FPC) has unveiled its first guideline on operational considerations for instant payments. Developed by the FPC Operational Considerations for Instant & Immediate Payments Work Group (OCWG), the guideline serves as a primer for financial institutions venturing into instant payment support.

An Introduction to Instant Payments

The guideline, called Guideline.01: Operational Considerations for Instant Payments Receive-Side Primer, is intended to provide high-level insights into the various areas of consideration for financial institutions when adopting instant payments. It is intended to be a springboard for planning the transition to faster payments. The guideline covers areas such as message flows, liquidity management, fraud mitigation, exception processing, staffing needs, and training requirements.

The Increasing Importance of Instant Payments

Miriam Sheril, the Head of Product - US at Form3 and Chair of the FPC Operational Considerations Work Group, emphasized the increasing focus on the operational aspects of instant payments, especially as the FedNow® Service and the TCH RTP® private sector solution are launched. The OCWG aims to provide information on how to operate a faster payment service focused on these two new payment channels.

Addressing Back Office Challenges

Tony Cook, Executive Vice President - Payment Operations at FirstBank and Vice Chair of the Operational Considerations Work Group, highlighted the need to address the practical aspects of supporting a 24/7 instant payment rail from a back-office perspective. The workgroup aims to help financial institutions navigate these challenges and become more comfortable with the concept of instant payments.

Future Guidelines

The FPC plans to release more detailed guidelines addressing specific solutions and ways to navigate these areas. The next in the series will focus on the send side of instant payments as well as non-value messages. FPC Executive Director Reed Luhtanen stated that FPC members are leading the way in faster payments, and the new guideline underscores the FPC’s commitment to equip financial institutions with the knowledge and resources required to transition to the era of instant payments.

Towards Faster Payments for All

The FPC emphasizes the inclusion of diverse perspectives in addressing complex topics such as interoperability, managing security risks and fraud threats, and addressing barriers to financial inclusion and cross-border payments. The organization is paving the way toward a future of faster payments for all.