When a shopper is tricked into making a fraudulent purchase, they expect recourse from their financial services provider. These guardrails are one of the reasons credit cards have become predominant in the U.S.\u2014not only can consumers dispute charges after the fact, but many issuers proactively alert users when suspicious activity occurs.<\/p>\n\n\n\n
Similar protections exist for ACH payments, but they are largely a function of the lag between payment initiation and settlement. With real-time payments, such as those facilitated by FedNow and the RTP network, this buffer disappears.<\/p>\n\n\n\n
As both systems gain traction, particularly in B2B use cases, fraud prevention strategies must evolve to address payments that are instant and irreversible.<\/p>\n\n\n\n
In a recent PaymentsJournal podcast, Darren Beyer<\/a>, Chief Product Officer at Qolo, and Suzanne Sando<\/a>, Lead Fraud Management Analyst at Javelin Strategy & Research, discussed how the convergence of faster payments and increasingly sophisticated fraud is fueling a full-scale redesign of fraud prevention architecture. It has also placed a demanding onus on financial institutions to implement highly precise risk controls while preserving the customer experience.<\/p>\n\n\n