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What’s inside?
How real-time payments are transforming fraud prevention
Take control of your fraud prevention strategy in the era of real-time payments. In the e-book, The Dummy Handbook on Real-Time Payments and Fraud Prevention, you’ll learn:
- Real-Time Payments Explained: Understand how real-time and batch processing methods contrast.
- Outsmart Fraudsters: Unmask common fraudulent strategies and strengthen your defenses.
- Stay Agile: Swiftly address fraud incidents while safeguarding your customer experience.
Introduction
If you're a fraud fighter, you surely like to stay informed about the most relevant trends in the financial services industry. There's no escaping the fact that, among these trends, the topic of real-time payments has become particularly important.
There's no better way to stay informed about new developments than to build a solid foundation of knowledge about the topics that catch our attention. This handbook provides an introduction to the world of real-time payments, the main risk considerations to address before implementing them, and top tips for safely launching real-time payment channels.
Real-Time Payments 101
First Things First: What Does “Real Time” Mean, and How Does It Apply to Electronic Payments?
To better understand what “real time” means in the context of payments, it's useful to remember that digital transactions are usually composed of several steps.
When used to describe electronic payments, real time means that a transaction is processed and funds are delivered to the recipient immediately after the payment is initiated. This usually means that every step in the payment process occurs within a short time frame, resulting in no noticeable delay for end users.
Examples of payment systems that follow real-time processing include the Federal Reserve's Fedwire and FedNow services and The Clearing House's RTP network. With some differences due to their design as closed-loop systems, payment applications such as Venmo and PayPal operate in a similar fashion.
Real-time payments stand in comparison to traditional systems in which individual transactions are queued and processed in batches, such as once every business day or every other day. This delays the final availability of funds for the recipient. Examples of payment systems that follow batch-processing methods include card networks and the ACH system.
Why Are Real-Time Payments Trending?
Customers today demand real-time payment options from their banks. While the speed is great for the customer experience, it’s also a welcome for real-time fraud. These kinds of attacks carry especially harmful consequences for customers, as a significant portion of real-time fraud can fall under authorized payment fraud and put the customer on the hook for the loss.
In this guide, you’ll learn how to fight fraudsters’ real-time scams while preserving a delightful customer experience. That starts with learning their scams, then implementing ways to outsmart them and prevent their attacks BEFORE they happen.
Year-After-Year,
the Industry’s Choice
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