Real-Time Payments (RTP) and FedNow are reshaping the way money moves. The promise is simple but powerful: funds transfer instantly, available 24/7/365, with no waiting days for settlement. For businesses, that means faster access to working capital and for consumers, a smoother payment experience.

It sounds like an obvious win. But behind the scenes, there are hidden costs that come with adopting real-time rails. Faster isn’t always cheaper – or easier. Companies must address new risks, invest in infrastructure, and adapt their operations to a world where payments move in seconds, not days.

Below, we’ll explore the often-overlooked costs of real-time payments and what organizations need to prepare for if they want to compete in this environment.

Fraud Risk Increases

The most immediate hidden cost is fraud. In traditional payment systems, banks and businesses had hours – or even days – to spot suspicious transactions before money cleared. That buffer is gone in a real-time world.

When settlement happens instantly, fraud detection must happen instantly too. Fraudsters know this, and they’re already exploiting the speed of RTP and FedNow. Social engineering scams, account takeover, and synthetic identity fraud become harder to stop when there’s no time to claw back funds.

To keep up, companies must:

  • Invest in advanced fraud detection tools: Machine learning and AI-driven monitoring are becoming the new standard.

  • Adopt layered defenses: Two-factor authentication, behavioral analytics, and biometric verification are no longer optional.

  • Train employees and customers: Fraud often starts with human error – phishing emails, fake invoices, or urgent “CEO requests.”

This means higher spending on technology, compliance teams, and customer education. And unlike traditional losses, fraud in real-time payments is much harder to reverse, making prevention the only line of defense.

Liquidity & Treasury Challenges

For treasury teams, real-time payments change everything. In the past, companies could rely on predictable settlement cycles to manage liquidity. With RTP, money can leave accounts instantly – day or night.

This creates new challenges:

  • 24/7 cash management: Treasury teams can’t just “close the books” at 5 PM anymore. Real-time payments require real-time visibility.

  • Liquidity buffers: Businesses may need to hold more funds in reserve to handle unexpected outflows.

  • Technology gaps: Many ERP and treasury systems aren’t yet designed for instant payments.

For example, a mid-sized retailer that pays vendors using FedNow may need to rethink how much cash they keep liquid at all times. An unexpected surge of payouts on a weekend could drain accounts before Monday morning, creating operational risks.

The hidden cost here is both financial (keeping more liquidity available) and operational (upgrading treasury systems and staff processes to match the speed of payments).

Compliance & Regulatory Pressure

Regulators are watching real-time payments closely. The expectation is clear: the same anti-money laundering (AML) and know-your-customer (KYC) safeguards that apply to traditional payments must also apply to RTP – only faster.

This presents unique challenges:

  • Instant screening: Sanctions checks, fraud alerts, and compliance reporting must happen in real time.

  • Higher accountability: Mistakes that slip through faster can mean larger fines or reputational damage.

  • Talent shortages: Skilled compliance professionals who understand RTP are in short supply, driving up hiring costs.

Many financial institutions are scrambling to implement automated compliance systems. Manual reviews simply can’t keep pace with instant settlement. As a result, organizations are investing heavily in RegTech solutions and rethinking how compliance fits into the payments workflow.

Technology Investment

Legacy systems weren’t built for real-time. Batch processing, overnight settlements, and limited API connectivity simply don’t align with the demands of RTP.

Companies that want to adopt real-time payments must:

  • Upgrade core infrastructure: Payment engines, fraud detection systems, and customer interfaces must all be RTP-ready.

  • Integrate new rails: RTP and FedNow need to work alongside ACH, wires, cards, and other rails in a unified ecosystem.

  • Plan for scalability: As RTP adoption grows, transaction volumes will increase dramatically.

These projects are expensive, multi-year undertakings. Smaller banks and fintechs may struggle to justify the upfront cost, while larger enterprises face the complexity of reengineering decades-old systems. The risk of delay is high – companies that wait too long could lose customers to competitors that offer instant payments sooner.

Operational & Cultural Shifts

Beyond the technical, real-time payments also demand cultural and operational changes inside organizations. Employees across finance, IT, risk, and compliance must learn to operate in a “real-time mindset.”

This means:

  • 24/7 staffing: Payment operations can’t just run during banking hours anymore.

  • New workflows: Exception handling, reconciliation, and dispute resolution need new processes.

  • Customer expectations: If payments are instant, support needs to be instant too. Consumers expect immediate resolution when something goes wrong.

This cultural shift is often underestimated – but it’s one of the most difficult and expensive changes to implement.

Talent is the Common Thread

Across all these hidden costs – fraud, liquidity, compliance, technology, and operations – one theme emerges: talent. The skills required to navigate real-time payments are scarce and in high demand.

  • Fraud teams need data scientists and machine learning experts.

  • Treasury teams need professionals comfortable with real-time cash management.

  • Compliance departments need leaders who understand instant AML/KYC.

  • Technology teams need engineers who can modernize legacy systems.

Finding, hiring, and retaining this talent is itself one of the largest hidden costs of real-time payments.

Conclusion

Real-time payments are no longer optional – they’re becoming the industry standard. The benefits are undeniable: speed, convenience, and efficiency. But the hidden costs are just as real: fraud exposure, liquidity challenges, regulatory complexity, technology investment, and cultural change.

Organizations that ignore these costs risk being left behind. Those that face them head-on, with the right systems and the right people in place, will be positioned to thrive in the new era of instant payments.

👉 At IMPACT Payments Recruiting, we specialize in helping companies build the teams they need to succeed in a real-time payments world. Whether you need leaders in fraud, compliance, treasury, or product, we connect you with talent that understands the complexities of RTP and FedNow.

📩 Reach us at contactIPR@go-impact.com to learn how we can help your business move faster – without falling behind.

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