I cringe every time I hear someone proclaim that instant payments are riskier than other payment types simply because they're faster. It’s a notion that gets tossed around at financial tech conferences like a funny stress ball ... easy to grasp yet weirdly hard to let go of.
And let’s be honest, for community banks and credit unions, that soothing giveaway has been getting a serious workout. The fear of scams and fraud speeding across the RTP® and FedNow® networks has kept many a risk officer up at night, clutching that foam sphere like it holds all the answers.
If they only knew about the Federal Reserve’s recently released risk officer survey, they might rethink that old narrative (and sleep a whole lot better). Spoiler alert: the real fraud drama isn’t happening on the instant payment rails.
Lessons Learned About Payment Fraud
Let’s rewind to the Zelle® saga of yesteryear to understand why the worry persists.
When Zelle first hit the scene, it was like the cool new kid at school ... until the scams showed up. Romance scams, fake puppies, and all sorts of digital heartbreak flooded the headlines. Users were getting duped, and many weren’t covered under Reg E. It was messy.
Zelle took the hit, then got to work. They tightened the rules, tweaked the tech, and slowly but surely, the fraud rates started to drop. It wasn’t magic, it was methodical. And the whole industry learned from the experience.
Instant Payment Fraud Rates vs. Other Payment Types
Now fast-forward to the breakdown in fraud by payment type in the Fed’s survey where we learn:
- Debit card fraud is still the reigning champ, responsible for 39% of total losses.
- Check fraud is hanging in there at 30%.
- ACH fraud clocks in at 9%, and credit card fraud is at 5%.
- But instant payments – RTP and FedNow – barely register with almost no losses and are actually 3% lower than the year before.
Wait, what? That’s not just surprising, it’s downright rebellious.
And while this was happening, the RTP network processed $246 billion in payments in 2024 – nearly double the previous year’s value. Volume also grew by 38%, with over a million payments zipping through the network every single day. That’s a lot of zeros. And yet, fraud didn’t spike. It dropped.
How Businesses Have Thwarted Instant Payment Fraud
So what gives? One theory is that instant payments are still largely used by businesses, and businesses aren’t exactly swiping right on romance scams or impulse-buying puppies from sketchy websites. Few corporates are falling for sob stories involving purebred teacup Yorkies stranded at the airport. And they are certainly not sending wire transfers to a mysterious breeder in Moldova.
Now, don’t get too comfy. Bad actors aren’t going away. This is, after all, their day job. The number of institutions reporting attempted check fraud rose 10% year over year. ACH fraud attempts were up 9%, and debit card fraud attempts increased by 6%.
But the losses tell a different story, and instant payments are holding their ground like a stress ball in a CFO’s death grip during budget season – under pressure but not cracking. For community banks and credit unions navigating tight margins and rising fraud concerns, that kind of resilience is more than reassuring. It’s a sign that faster payments can be a safe bet when paired with smart controls.
Use Cases, Growth, and Security Benefits of Instant Payments
As use cases expand, we can expect fraud patterns and payment volumes to shift. Businesses are increasingly using instant payments for payroll, bill payments, digital wallet funding, B2B transactions, and urgent same-day transfers. Nearly two-thirds of U.S. businesses say they’re likely to use instant payments if offered by their primary financial institution, with instant payroll emerging as a top use case.
The RTP network is now processing about $3 billion daily, and average transaction values climbed from $514 in 2023 to $719 in 2024 before skyrocketing to $4,000 in mid-2025. By 2028, third-party processors expect 70% to 80% of U.S. institutions to be able to receive instant payments, and 30% to 40% to be able to send them. That’s a lot of momentum – and a lot of opportunity.
So maybe it’s time to retire old assumptions. The instant payment networks aren’t sketchy quick backroads; they are well-engineered express lanes. With smart design, solid controls, and a healthy dose of vigilance, faster payments can actually be safer payments. Community banks and credit unions, take note: the rails are ready, and the risk is totally manageable.
And that stress ball? You can finally put it down.
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