Consumers who fall prey to scammers while using instant payment networks rarely get their money back. And that's a growing problem, according to a recent report from the Senate Permanent Subcommittee on Investigations. Unlike other payment types (like card payments) once a payment instruction is sent via Zelle, for example, it can't be canceled or reversed, with few exceptions. Federal law does require instant payment platforms to reimburse consumers who lose money due to unauthorized transactions, but there is no such requirement for transactions authorized as a result of scams.
This issue's lead article dives into the prevalence and causes of fraud on instant payment networks, and points to AI as a potentially powerful tool for quickly identifying scams and stopping them. Complementing this discussion, one contributor herein points out that financial institutions are struggling to harness generative AI due to legacy technology, and suggests event-driven architecture can help due to its ability to convert data into actionable insights. Other areas explored by industry experts include why merchants switch providers even when it appears you're doing everything right, and how to prevent this; the opportunity fintech companies and payment processors have right now to showcase their technological prowess and capture market share; and given that choosing your partner is the most important decision you'll make in this business, it's essential to identify both what you're looking for in a partner and what you bring to the table.
In our news briefs, we spotlight a Paysafe report discussing consumer payment preferences, including demand for diverse and secure payment options, with many abandoning purchases if their preferred method, including cash, isn't available. Other stories discuss how ecommerce growth is being undermined by rising rates of returns, prompting new initiatives from Mastercard and Visa to help merchants combat abuse; the surge in ransomware attacks and related losses, and how companies are intensifying security measures to protect users and businesses from increasingly sophisticated cyber threats; and U.S. regulators' outreach seeking public input on the risks of bank-fintech partnerships. New products featured in this issue include thermal receipt printers engineered to elevate retail and hospitality operations with speed, flexibility and cutting-edge connectivity, as well as an embedded anti-card fraud technology that targets card-not-present fraud. Also check out our updates on recent industry milestones. To share your news, send a press release to press@greensheet.com. And remember, we'll welcome your feedback at greensheet@greensheet.com. 
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