Why Do Fast Transfers Work Better within Payment Networks?

Ruben Salazar

Senior VP and the Head of Product & Solutions at Visa Latin America and the Caribbean

Views 1249

Why Do Fast Transfers Work Better within Payment Networks?

23.05.2018 01:45 pm

Financial authorities and regulators around the globe are looking for new fast payment solutions. International card payment networks like Visa are already offering and expanding these solutions. Fast Transfers in payments networks are transactions initiated by a consumer or a business to send funds or pay using their existing Visa payment credentials; we call this transaction a Push Payment or user-initiated transfers. Visa’s platform for this type of transaction is called Visa Direct, which enables real-time, frictionless, and secure fast payments between individuals and/or businesses on any device, and its widely accepted around the globe.

What makes Push Payments truly unique is that these transfers of funds are done instantly, without waiting for several days for funds to clear and other back office processes to be completed. When card payment networks operate Push Payments, a consumer initiates the transfer of funds using their credit, debit or prepaid card credentials. The transaction is processed with the same level of security, cryptography and robust risk management tools, as one would expect from all type of payment network transactions until the funds reach the recipient’s card account number.

The originating bank or certified third party and the recipient bank are connected to Visa’s global processing platform (“VisaNet”). The same proven network that connects thousands of banks, millions of merchants and ATMs and that handles more than 160 billion transactions per year, at unparalleled uptime, service levels and transaction speed to enable digital and physical commerce across the globe. A Visa transaction takes fractions of seconds, during this time the network invokes a series of verifications, risk scores and authentication messages to inform in real-time consumers, merchants, banks and acquirers that participate in each secure transaction.

Fast transfers running on a payment network operate under a reduced chance of fraud model because the card account holder is the one that initiates the transaction. That said, Visa Direct is enabled with a vigorous set of chargeback and dispute standards, that allow the card account holder to have safeguards against non-authorized fund transfers. 

The Visa Direct platform processes billions of dollars in transfer volume through the Visa network. The platform is currently being used and operated by both financial institutions and digital players such as Square, Facebook, PayPal and Venmo across the world.

The investment to operate the platform is minimal as it leverages the existing interoperable infrastructure and payment credentials, which financial institutions know well and are accustomed to operating. By contrast, a more traditional inter-bank transfer model based on banking account standards and multiple customer interfaces creates vulnerabilities, which hackers and organized crime units take advantage of to perform theft, undermining consumer confidence.

Visa operates globally in more than 200 countries and territories and is committed to keep developing solutions to potentially allowing >2.5 billion consumers and small businesses debit and prepaid cards to receive Push Payments in real-time through the Visa Direct platform. 

Latest blogs

Wayne Johnson encompass corporation

The rise of the KYC Utility: How to plan for success

Successful compliance and risk management programmes within financial institutions depend on effective Know Your Customer (KYC) processes yet most have found these processes to be increasingly onerous, both in terms of time and cost.  This is Read more »

Paul Petta mastercard

Free Trials Without The Hassle

No one wants to be unsatisfied with a product after paying for it. For some consumers, a free-trial is a great way to test out a new product and get comfortable with it before making a purchasing decision. And with so many merchants offering free Read more »

John Bertrand Cognizant

Cryptocurrencies and the need for regulation

Anyone with a pulse and the money to cover legal fees can issue a cryptocurrency.  Once the cryptocurrency is created, however, brokers are needed to sell and make a market for it. Given cryptocurrencies are an unregulated market, then there are Read more »

Peter Groucutt Databarracks

New report suggests that UK government should regulate IoT: Comment from Databarracks

The content, guidelines and recommendations in the government’s recently introduced Code of Practice are excellent. It addresses the most fundamental cyber security practices in order of criticality and importance. But the scheme doesn’t prohibit Read more »

Noa Benari SecuredTouch

4 Mobile Banking Trojan Families to Fear According to McAfee

Mobile malware is becoming more sophisticated and evasive, making detection challenging. According to the McAfee Labs Threats Report for June 2018, mobile malware grew by 42% since last year. Read more »

Related Blogs

Elina Mattila Mobey Forum

The Way You Make Me Feel – Highlights from Mobey Day 2018

Banking is not just about money. According to Lorenz Jüngling from The Isle Ventures, it is also about users and, most importantly, their emotions.  And, as Danske Bank’s Guri Hanstvedt commented, the power of emotions should not be underestimated. Read more »

André Stoorvogel Rambus

What is Card-on-file EMV Payment Tokenization?

The way we pay is changing. Consumers are now using their PC, smartphones, wearable devices and even cars to buy goods and services. The size and value of the card-not-present (CNP) market is increasing exponentially as payment use-cases across e- Read more »

Paul Sweetingham DXC Technology

Eight Must-haves When Choosing a Cards and Payments Services Provider

There are so many factors to consider when a business starts looking for a cards and payment services provider.  The new kids on the block, fintechs and start-ups, are challenging the norm, bringing technological customer expectations with them – Read more »

Jens Bader MuchBetter

Despite recriminations, the UK Government is far from faultless over Visa crash

On Friday 1st June, an undisclosed ‘hardware issue’ at Visa left millions of people unable to pay for goods and services in the UK and across Europe. A cross-party group of MPs has since spoken out and demanded answers from Visa, but it begs the Read more »

Center for Financial Professionals Center for Financial Professionals

The evolving payments landscape: Increasing competitiveness and upcoming regulatory deadlines

In recent years the payments landscape has evolved and transformed, in the near future it seems likely to continue to do so. 2018 is being seen as a watershed year in terms of regulatory implementation deadlines across the financial services space Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App