Fraud detection software is a core tool for securing instant payment systems (IPS). However, other critical measures are needed to reduce fraud risk. This report reviews non-software-based fraud mitigation techniques used by IPS, focusing on four areas:
- Limits: Countries set transaction value and volume limits, with flexibility for participants to lower thresholds based on customer risk. Examples include UPI (India) and Pix (Brazil).
- Fees: Most IPS operate on a cost recovery + investment model, maintaining low transaction fees to promote affordability and scale.
- Complaints: Regulations typically require DFSPs to provide clear complaint channels and timelines, though schemes vary widely in procedures and customer communication.
- Disputes: Most IPS have high-level dispute resolution processes, with some offering fraud-specific mechanisms (e.g., Pix’s Special Mechanism for Return).
This scan provides insights into best practices for layered fraud defense, beyond detection tools, to support trust and system integrity in instant payments.