Payments Exchange

Join U.S. Faster Payments Council Founders for a Webinar!

In November, the Federal Reserve announced the launch of a new membership organization, the U.S. Faster Payments Council (FPC) (Off-site), whose mission is to ensure all Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability.

To learn more about this widely anticipated organization, join FPC founders for an informative webinar:

What: The New U.S. Faster Payments Council – Your Questions Answered!
When: December 5, 11:00 a.m. – Noon CT … or… December 13, 9:00 – 10:00 a.m. CT
Who: All are welcome

Register Now (Off-site)

Background:

In its July 2017 final report, the Faster Payments Task Force called upon all stakeholders to realize the vision for a payment system in the United States that is faster, ubiquitous, broadly inclusive, safe, highly secure and efficient by 2020. The task force recommended ongoing collaboration to create a faster payments governance framework, inclusive of all stakeholders, to facilitate ubiquity of faster payments.

The Governance Framework Formation Team (GFFT), a short-term work group of 27 industry participants, was appointed by the task force to fulfill its vision. Their work on a governance framework is now captured in the mission, values and structure of the new U.S. Faster Payments Council.

Ready to learn more? Register now (Off-site) for either the December 5 or December 13 webinar.

The Inaugural FedPayments Improvement Community Forum Highlights Payments Announcements and Opportunities for Community Collaboration

The FedPayments Improvement Community Forum brought together 300 attendees under a common theme: to help shape the next steps in the Federal Reserve’s initiatives to modernize the U.S. payment system.

Keynote speeches offered insight and updates on payment improvement initiatives and workshops facilitated conversations and collaboration. Relive the energy and inspiration attendees expressed in candid interviews filmed live at the Forum.

Download Forum Summary (PDF)

Workshop Summaries

Collaborate. Engage. Transform.


To learn more about the Federal Reserve’s work and participate in this historic effort to collaborate, engage and transform the U.S. payment system, join the FedPayments Improvement Community.

Thank You for Attending a Faster Payments Settlement Assessment Federal Register Notice Town Hall

Thank you to everyone who attended our town halls on the Faster Payments Settlement Assessment Federal Register Notice (Off-site). The Federal Reserve believes that industry collaboration is the foundation of any enduring strategic improvements to the U.S. payment system.

If you were unable to attend or would like to review the content covered at each town hall, we encourage you to view the slides in the town hall section of our Faster Payments Settlement Assessment page.

All comments must be formally submitted in order to be a part of the Board’s assessment. Don’t miss your opportunity to provide input on or before the December 14 deadline using one of the following channels:

  • Federal Reserve website (Off-site): Follow the online instructions (Off-site) for submitting comments.
  • Email: regs.comments@federalreserve.gov; include docket number OP-1625 in the subject line of the message.
  • Fax: (202) 452-3819 or (202) 452-3102.
  • Mail: Ann Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, DC 20551.

To learn more about the Federal Register Notice and the opportunity to submit comments, visit FedPaymentsImprovement.org.

Federal Reserve Announces Next Phase of Secure Payments Strategy

The Federal Reserve has served as a catalyst for change in the improvement and advancement of payments security in the United States and continues to engage with industry stakeholders. To help the Fed set priorities for collaboration with the industry to enhance end-to-end payments security, the Fed commissioned Boston Consulting Group (PDF) to assess fraud and associated costs, causes and contributing factors. In addition, Federal Reserve Payments Study data announced (Off-site) this October fostered a better understanding of fraud in the payments system. Together, these two data sources provide a comprehensive overview of payments fraud in the United States, will help educate the industry on the payments fraud landscape, and point to areas where additional work is needed.

Based on this Fed and third-party research, ongoing payments industry discussions, and recommendations of the Secure Payments Task Force, the Federal Reserve determined three common themes affecting payment security.

  1. U.S. payments fraud has continued to grow, although it remains a small fraction of overall U.S. payments
  2. Data gaps and inconsistencies across payment methods and stakeholder groups make it more difficult to assess – and address – payments fraud
  3. We are gaining insights on where fraudsters are exploiting vulnerabilities in the U.S. payment system

As announced at the inaugural FedPayments Community Forum October 3, the Federal Reserve has identified four payments security priorities for near-term action to address these themes:

  • ACH and Wire Fraud Definitions
  • Synthetic Identity Payments Fraud Mitigation
  • Remote Payments Authentication Fraud Mitigation
  • Facilitate Strategic Dialogue on Evolving Payments Security and Fraud Issues

Learn more about the Federal Reserve’s payments security efforts.

Federal Reserve Payments Study highlights U.S noncash payments fraud rose between 2012 and 2015

The Federal Reserve released its latest payments study fraud report, which details the cost and number of fraudulent payments in the United States. Among the important findings:

  • The 2015 payments fraud rate, by value, was more than 20 percent larger than in 2012, while the 2015 fraud rate, by number, was nearly 70 percent larger than in 2012
  • There was an estimated 46 cents of payments fraud for every $10,000 of payments in 2015, compared to 38 cents of payments fraud for every $10,000 of payments in 2012
  • The value of fraudulent card payments and automated teller machine (ATM) withdrawals rose from an estimated $4 billion in 2012 to $6.5 billion in 2015
  • Card fraud, by value, accounted for more than three-fourths of noncash payments fraud in 2015, rising from less than two-thirds in 2012
  • The value of ACH fraud rose to $1.2 billion in 2015 from $1 billion in 2012, but the fraud rate was little changed

For the full report, including charts and data tables, visit the Federal Reserve Payments Study (Off-Site) page.

In addition, the Federal Reserve commissioned Boston Consulting Group earlier this year to assess fraud and associated costs, causes and contributing factors. For more information, visit the Payments Security page.

Introducing the U.S. Faster Payments Council

The Governance Framework Formation Team (GFFT) has launched a new, highly anticipated payments organization – the U.S. Faster Payments Council (FPC).

In today’s increasingly mobile, digital economy, Americans are demanding a world-class payment system where they can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. With the Faster Payments Task Force’s Effectiveness Criteria (PDF) as a touchstone, the FPC’s mission is to work with all stakeholders to meet evolving end-user needs by advancing the faster payments ecosystem, driving the emerging faster payments infrastructure toward ubiquity, fostering a high-quality and secure user experience for all and supporting widespread use of faster payments.

By design, the FPC encourages a diverse range of perspectives in supporting the path to ubiquitous faster payments and is open to all stakeholders in the U.S. payment system. By embracing a broad member audience, including financial institutions, payment network operators, technology providers, consumer and business end users, and individuals with a professional interest in improving the payment system, the FPC will tackle challenges that may be more difficult to address through bilateral cooperation alone.

As a new organization, the FPC will channel its resources toward the most pressing issues that are inhibiting faster payment ubiquity. In its first two years, the organization will focus on:

  • Supporting adoption of practices that enhance safety and security for service providers and users of faster payments.
  • Identifying, developing and supporting guidelines and market practices that will address opportunities and emerging issues in an open and collaborative way.
  • Developing an education and awareness program to foster better understanding of faster payments.

The FPC’s structure, operations and activities are designed to adhere to the FPC’s fundamental principles of inclusiveness, fairness, flexibility, responsiveness and transparency. Through diverse representation on the FPC Board and open opportunities to serve on committees and work groups, all active members have a voice in the direction of the work.

A number of GFFT members have already committed to being founding sponsors or members of the FPC and will lead establishment activities for the organization. To learn more, visit www.FasterPaymentsCouncil.org (Off-site).

Fall 2018 Progress Report Now Available: Payment Improvements Continue to Gain Momentum

We are pleased to announce the release of our Fall 2018 Progress Report (PDF)! The report highlights the important work we’ve completed in collaboration with the industry and next steps we’re taking toward the desired outcomes for speed, security, efficiency, international payments and collaboration as outlined in the Strategies for Improving the U.S. Payment System (PDF) paper. We encourage you to review the progress report and think about how your organization can engage with us in our journey toward a better payment system for the future.

Some of the exciting accomplishments and next steps include:

Speed

  • Accomplishment: Reached a major milestone in the Fed’s Settlement and Service Provider Assessment with the release of a Federal Register Notice that seeks public comment on potential actions the Federal Reserve could take to facilitate real-time interbank settlement of faster payments
  • What’s Next: Engage with stakeholders and encourage feedback on the Federal Register Notice through the public comment process, which will be critical to informing the assessment and determining a course of action

Security

  • Accomplishment: Sponsored secondary research and consulted with several industry stakeholders to identify payments fraud causes and contributing factors to help inform the Fed’s next steps for industry collaboration to improve payment security
  • What’s Next: Engage the industry to further Federal Reserve and industry understanding of trends, vulnerabilities and fraud mitigation strategies related to remote payments, the use of synthetic identities, and emerging payments

Efficiency

  • Accomplishments:
    • Supported the Business Payments Coalition in publishing the paper, Simple Remittance Requirements (PDF), which defines data needs for simple remittance information that can be easily adopted by small to medium businesses
    • Conducted a series of webinars and in-person road shows in support of the proposed Fedwire® Funds Service migration to the ISO® 20022 messaging format standard
  • What’s Next:
    • Continue research by the Business Payments Coalition work group to explore availability of APIs for small business accounting software that could enable greater adoption of electronic payments
    • Continue the series of online webinars to educate customers and vendors about the proposed ISO 20022 implementation plans for the Fedwire Funds Service and ACH tools in the marketplace to support integration in the network

International

  • Accomplishment: Engaged payment industry stakeholders at the FedPayments Improvement Community Forum on developments in cross-border payments and opportunities for industry collaboration
  • What’s Next: Continue work to assess the FedGlobal® ACH strategy for potential future service border payments

Collaboration

  • Accomplishment: Hosted the inaugural FedPayments Improvement Community Forum where more than 250 members of the FedPayments Improvement Community engaged in dialogue on faster payments updates, as well as developments in payments security, efficiency, innovation and cross-border.
  • What’s Next: Share information and key takeaways from the FedPayments Improvement Community Forum with all Community members

To see a detailed summary of all accomplishments and next steps, check out the full version of the Fall 2018 Progress Report (PDF) and stay engaged in our payments improvement initiatives by joining the FedPayments Improvement Community.

Thank you FedPayments Improvement Community Forum Attendees

Thank you to everyone who attended the inaugural FedPayments Improvement Community Forum in Chicago this week. You brought passion and enthusiasm to the Forum, and your dialogue and engagement is helping to shape the future of a faster, safer and more efficient payment system in the United States.

Did you miss the event? Over the coming weeks, visit the Forum page on FedPaymentsImprovement.org to access summaries of these sessions and the exciting ideas that emerged from them.

There, you will also find meeting materials, speaker biographies and the agenda from the Forum. We covered a variety of topics, including:

  • Next steps in the Federal Reserve’s payment security strategy
  • Key insights on payments efficiency
  • Newest updates on U.S. faster payments
  • Opportunities for industry collaboration in cross-border payments.

Through active collaboration with industry we are making significant advancements in our payments improvement initiatives!

To hear more about the Federal Reserve’s work and participate in this historic effort to collaborate, engage and transform the U.S. payments system, join the FedPayments Improvement Community.

Survey Yields Important Insights for Proposed U.S. Faster Payments Council

A recent survey of payments industry stakeholders on the draft Operating Vision for the proposed U.S. Faster Payments Council (FPC) revealed support for the organization as well as insights on how it could be changed to better serve the needs of the payments industry.

The Governance Framework Formation Team (GFFT) has released a report (PDF) summarizing the findings from the survey, which was designed to elicit feedback on the FPC’s draft Operating Vision (PDF), including the GFFT’s proposed approach to the mission, guiding principles, structure, authority, funding and core focus areas of the organization. The vision of the FPC is to facilitate a ubiquitous, world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with immediate funds availability.

The survey was fielded during a 60-day stakeholder feedback period, April 24 –June 22, during which the GFFT conducted an extensive education and outreach campaign to inform a diverse range of stakeholders about the FPC. The 34-question online survey generated 178 survey submissions and more than 1,000 written comments.

Overall, survey respondents within each stakeholder group were in at least general agreement with almost all aspects of the FPC, including the need and rationale for the FPC, its guiding principles, core functions, membership, Board of Directors, committees and work groups, and decision-making processes. In addition, nearly 70 percent of respondents were interested in joining the FPC. Level of interest varied across segments, however, with 60 percent or more of financial institutions of all sizes, business end users and “other” respondents expressing interest, and more than 80 percent of non-bank providers also expressing interest. Consumer interest organizations and government end users were more neutral or disinclined to join.

Respondents across stakeholder groups also offered a variety of comments, concerns and suggestions on certain aspects of the FPC. Thematically, comments focused on the FPC’s likely effectiveness and speed in achieving results; potential tradeoffs between inclusiveness and the proposed funding model; and the exact nature of the functions, authority, and Board structure of the FPC. Moving forward, these inputs from stakeholders will be an important part of the Governance Framework Formation Team’s deliberations in reworking the Operating Vision to meet the faster payments industry’s needs.

For additional findings from the survey, download and read the full report here (PDF). To stay abreast of the latest news from the GFFT and other strategic payments initiatives, join the FedPaymentsImprovement Community.

Improve Payment Security with Current Resources – and More to Come

A recent Federal Reserve webinar (Off-site) offered practical advice about how to use online resources to improve payment security – taking another step toward achieving a future of secure, fast and efficient payments that meet the current and future needs of consumers and businesses in the United States.

These online resources – the Information Sharing Data Sources (Off-site) and Payment Lifecycles and Security Profiles (Off-site) – were published by the Secure Payments Task Force. This coalition of more than 200 payment industry stakeholders was active from June 2015 to March 2018 as a forum for stakeholders to advise the Federal Reserve on payment security matters and determine areas of focus for payment security and priorities for action.

“There’s not a lot of formal education around payments… This [resource] isn’t just for banks, or organizations, or non-bank providers. It’s for everyone in the ecosystem,” said Bryan Penny of Nordstrom. Penny went on to describe uses of the Information Sharing Data Sources (Off-site) published by the Secure Payments Task Force. “When you get into payments, if you just start searching the web, you don’t know if that source is reliable and has good information. All these sources were vetted by experts.”

Suzanne Martindale of Consumers Union (publisher of Consumer Reports) described another task force deliverable, the Payment Lifecycles and Security Profiles (Off-site). These profiles of eight common payment types – from enrollment through transaction flow to reconciliation – “are meant to highlight potential vulnerabilities in various payment types, to educate stakeholders, from the experts to folks who are new [to payments], and encourage best practices in payments security.” This resource is being used “by everyone and anyone,” she said, including business leaders, product developers, risk managers and consumer advocates (including Suzanne herself).

Ed O’Neill, former Federal Reserve System vice president of secure payments, characterized the two task force deliverables as “a valuable foundation for our next phase of work.” The Federal Reserve kicked off a payments fraud study in March 2018 to analyze and prioritize payment system vulnerabilities. This research is intended to help inform the Federal Reserve’s ongoing collaboration with the industry to enhance end-to-end payment security. Key findings of the study and next steps to advance payments security are expected to be announced later this year, O’Neill said.

For more information: