Dispute-Resolution Mechanisms in Fast Payments : Technical Note

Overview & Synopsis

The global proliferation of fast payment systems has transformed retail payment landscapes by enabling instant clearing and round-the-clock availability. While this advancement enhances efficiency and supports financial inclusion, it also introduces novel challenges - particularly regarding the resolution of disputes arising from fraudulent, erroneous, or contested transactions. This technical note offers a structured examination of dispute-resolution mechanisms in fast payment systems, drawing on diverse global experiences to provide jurisdictions with policy guidance. It identifies the unique features of fast payment systems such as irrevocability, finality of settlement, and real-time execution that complicate traditional dispute-handling frameworks. These features increase exposure to operational and consumer risk while compressing the time window for fraud detection, recourse, and fund recovery.