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October 12, 2015
/   Voices

EMV is the global benchmark for credit and debit cards that incorporate chip technology.

Big rise in Australian card fraud

October 9, 2015
/   Insights

Cases of card not present (CNP) fraud are continuing to rise across all corners of the globe, as EMV forces criminals away from traditional fraud channels.

EMV is Here: Tips & Tricks You Need to Know

October 7, 2015
/   Insights

The EMV (Europay, MasterCard, Visa) shift went into effect on October 1, 2015 and a majority of large retailers and merchants have upgraded POS terminals to accept EMV chip cards. Despite this new mandate,...

FI Highlight: BankMobile

October 2, 2015
/   Spotlight

Financial institutions that aren’t developing and catering to the wants and needs of younger demographics are missing out on huge opportunities for growth. Luvleen Sidhu, Chief Strategy and Marketing Officer at BankMobile, spoke with...

EMV Liability Shift: Are You Ready?

September 28, 2015

The talking is nearly over for the US payments industry as October 1st sees the all-important EMV liability shift. Chip cards are being issued to consumers and merchants are upgrading their point of sale...

The 5 Most Dangerous Mobile Banking Habits

September 14, 2015
/   Voices

Mobile banking grows more ubiquitous every year. 52 percent of smartphone owners with a bank account use mobile banking, according to the Federal Reserve, and more than half of users log in at least...

The Case for CSR

September 7, 2015

The demise of a New York City law shouldn’t stop good works

FI Highlight: Nusenda Credit Union

September 1, 2015
/   Spotlight

While it is important for banks and credit unions to consider the needs of consumers, it’s also important for FIs to take employee needs into consideration as well. Michelle Dearholt, SVP of Human Resources at Nusenda...

Is a .bank Domain Right for Your Bank?

August 28, 2015
/   Voices

With the general availability of the .bank registry under way, more than 5,500 applications from over 2,200 banks have already taken place, according to fTLD Registry Services.

Can Smartphones Solve ATM Skimming

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ATM skimming remains a big business for organized crime rings. According to a recent article in ATMMarketplace.com, card skimming accounted for more than $2 billion in losses. One new approach that banks are exploring...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

Payment security and speed go hand in hand, according to the Federal Reserve and NACHA. The Fed’s recently unveiled plan to roll out real-time payments in the U.S. is growing closer to becoming a reality with the formation of a Board Advisory Group that will help NACHA realize its plans to create faster and more secure payments that meet the needs of banking institutions, merchants and many others.

It’s the latest move in the direction to modernize the way that U.S. businesses and consumers complete transactions, as the nation is only just getting up to speed with EMV technology. However, is the adoption of real-time payments a good idea?  

Drivers of change

Convenience for consumers is perhaps the biggest driver behind the push to adopt real-time payments, as research shows customers are clamouring for speedy transfers.

No longer are consumers prepared to wait a week for a check to clear, or for a batch transfer to slowly surface over a three-day period. Research from the Fed points towards an overwhelming preference for instant or one-hour payment speeds.

“A safer, more efficient and faster payment system contributes to public confidence and economic growth,” said Jerome Powell, Federal Reserve board governor.

But while real-time payments are in demand for the added convenience of speed, will the new system also create a higher level of security?

UK case study

Real-time payments schemes have already been launched in a number of countries across the globe, so it’s prudent to take a look at how the system has performed previously.

In the UK, the scheme was launched nearly seven years ago back in May 2008, and in the years following there was a surge in online banking fraud. Losses went from £22.6 million in 2007 to £52.2m in 2008 and £59.7 million in 2009. After receding, online banking fraud losses jumped again last year to reach more than £60 million.

We can expect some increase to occur as online banking use becomes more common, but the problem for banks is that online transactions did not previously need to be completed so quickly – if you had days to check for fraud then detection systems did not need to be so evolved as they do now.

It’s interesting to note, however, that the £60 million in online banking fraud is just a tiny fraction of the amount being sent through the system daily. The technology exists now to ensure that Faster Payments is secure, but the Fed will need to work closely with stakeholders to get it right – it won’t want faster payments to mean faster fraud.

U.S. plans

Payments security is a big worry and the Fed notes that more input from the industry in order to create a comprehensive list of security gaps and fraud concerns. However, the formation of the Advisory Board Group will go a long way to identifying the concerns of a broad range of industries.

Payments in the U.S. is big money. According to NACHA, the ACH network moves almost $39 trillion and just under 22 billion electronic payments annually. But will it provide real-time delivery of payment messages more frequently and yet keep a lid on fraud?


It all hinges on how real-time payments will be rolled out: whether the technology is in place for a seamless integration and if fraud has been properly prepared for. Two payments task forces will be assembled by the Fed to address security concerns such as real-time payments verification and user authentication.

These two task forces, the Faster Payments Task Force and the Payments Security Task Force, will help the Fed to better understand the impact it can have and what the next steps it should take are. “We have to ensure that security in payments is a concern,” said Dave Sapenaro, first vice president of the Federal Reserve Bank of St. Louis.

“Other countries that have implemented faster payments have incorporated things like strong authentication, real-time monitoring, transactional dollar limits, credit-only payments and interbank settlement throughout the day, as opposed to just at the end of the day. Those are all things we want both task forces to look at,” he added.

The Fed stressed that all stakeholders will need to collaborate and contribute to realise the goal of a modern payment system. However, progress is rolling forward and it seems that all is being done to ensure the risk of fraud will be minimized to as little as possible.



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Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp


Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.