Federal Government Policy and Business

Federal Reserve Sketches Road To Faster US Payments

Forbes: The Federal Reserve has released a long-awaited report and recommendations for the US payments system: Strategies for Improving the U.S. Payment System. Looking at ways to move payments to near real-time, a change from the ACH system which can take several days, the reports offers suggestions for speeding up the network, improving security, and working with financial institutions.

“The Federal Reserve believes that the U.S. payment system is at a critical juncture in its evolution…High-speed data networks are becoming ubiquitous, computing devices are becoming more sophisticated and mobile, and information is increasingly processed in real time… Meanwhile, payment security and the protection of sensitive data, which are foundational to public confidence in any payment system, are challenged by dynamic, persistent and rapidly escalating threats. Finally, an increasing number of U.S. citizens and businesses routinely transfer value across borders and demand better payment options to swiftly and efficiently do so.”

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