- News & Events
September 24, 2013
Twelve Federal Reserve district banks warn that the U.S. payment system is being threatened by fraud and other cybercrime and called for streamlining transactions from point of payment to point of receipt.
In a paper on its website, the Fed noted, “Opportunity exists to improve speed and efficiency of payments and to maintain payment system safety in the face of escalating threats…. New ways of making payments and advanced fraud schemes and technologies present new risks and challenges to maintaining public confidence in the payments system. The impact of a significant fraud event, cyberattack or natural disaster on the public’s confidence may adversely impact the flow of commerce that is increasingly electronic or digital.”
Joshua Zumbrun explains on Bloomberg.com: “The central bank oversees the nation’s payment system, which handles more than $3 trillion-a-day to pay for goods, services and financial instruments.”
Currently, the United States lags behind other countries in the speed of transactions. Quoting a paper by the Fed district banks’ Financial Services Committee, Zumbrun writes, “In a world where several other countries are moving to ubiquitous near-real-time retail payment systems, the U.S. payment system does not have this capability….(C)ross-border payments from and to the United States are slow, inconvenient, costly and lack transparency regarding fees and timing.”
From now through Dec. 13, 2013, the Fed will be looking for responses to a survey on payment systems. Go to www.fedpaymentsimprovement.org to share your views.
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Posted by Dan Rampe
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