Immediate Payments FAQ

What are the benefits of immediate payments?

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Immediate payments offer many benefits not only for consumers but also for credit unions. Some of these benefits include:

The contextual data surrounding a payment has been missing from every previous payment system. Immediate payments offer the ability to attach information about the payment that doesn’t detach throughout the process, which is helpful during payment processing and reconciliation.

Unlike the other existing payments rails, immediate payments can facilitate a new request for payment (RfP), which allows a business or a consumer to send a request in the form of a message and provides the payor with the option to authorize or deny the payment. RfPs could be used in conjunction with bill pay or similar use cases.

Payments are reduced from hours or minutes to seconds, which sets immediate payments apart from faster payments like Same Day ACH.

Facilitate immediate authorization, immediate posting, and immediate clearing or settlement.

Immediate payments are irreversible, enabling immediate final settlement to the payee.

Satisfy the growing member demand for instant access to funds and more convenient electronic payment options, thereby enhancing member satisfaction.

Credit unions improve business performance, enhance operational efficiencies, and reduce the risk of fraud by conforming to ISO 20022, which enables credit unions to send rich data sets with each transaction.

Give your members greater visibility into their financial situations, reducing the risk of overdraft fees and similar penalties.

Payment security is increased by enabling bi-directional communication within a secure system.

Attract and retain customers by offering competitive immediate payment services.

Immediate payments offer credit unions the potential to grow revenue (e.g., transaction fees, fees for new service or product offerings).

Reduce costs through the increased efficiency and automation that immediate payments allow.

Organizations are empowered to optimize existing service offerings, service new markets, and open new revenue streams.