Fed Faster Payments Decision Means More Consumer Control

The Federal Reserve announced this week they will move forward with a plan to upgrade America’s financial infrastructure to allow for faster payments.

This decision was highly anticipated and welcomed by retailers, community banks, technology firms, and consumers – all who will benefit from safe and efficient faster payments in the United States.

What does faster payments mean for businesses, consumers, and workers?

  • More control and clarity over finances.

  • Dramatically faster payment processing.

  • Real-time, safe access to funds. No more waiting for checks to clear over a weekend or holiday that could lead to billions in overdraft fees.

  • Less reliance on high-cost financial services in order to access funds more rapidly.

  • With the Fed operating a faster payment system, small institutions and entrepreneurs can compete for business on a more level playing field.

Under the current system, financial transactions can take up to 72 hours to clear. These delays cause stress, an over reliance on credit, and higher fees paid by individuals and merchants. Faster payments mean merchants and consumers will have access to their money in real time, giving them more control and clarity over their finances.

RILA has long advocated for speeding up electronic payments and has been a collaborative partner with the Federal Reserve, participating in the Secure and Faster Payments Task Forces. These efforts brought industries from across the payment ecosystem together to discuss a wide range of policy issues, with the overall goal of updating and improving the nation’s payment infrastructure.

For more information about RILA’s advocacy work on faster payments, contact Austen Jensen.

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