Fed's Real-Time Payments Idea Presents Risks, Challenges
The Federal Reserve System’s announcement that it is developing the FedNowSM Service, a real-time payment and settlement service, has inspired comments about how the reduction in payment delays will reduce overdraft and short-term credit-related costs from policymakers.
Real-time payments can cut both ways for overdraft and consumer use of short-term credit. Given that real-time payment services are platforms for financial institutions, working out responsibilities and calculating restitution and damages may involve considering the dynamics between financial institutions.
Reprinted with permission from Law360, January / 2020
Copyright © 2020 by Ballard Spahr LLP.
(No claim to original U.S. government material.)
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.