Real-time payments, near real-time payments, faster payments, immediate payments — those are just some names used to describe the increasing speed of the settlement transaction process. Slow clearing times for payments can have a negative effect on businesses and consumers, but a quicker process may introduce fraud risks.

The National Automated Clearing House Association (NACHA) issued the Faster Payments initiative to address the “lack of a real-time or faster-payment system” within the U.S., a situation that puts both businesses and consumers at a disadvantage.