Are You Making Payments Too Quickly?

Forward​ ​movement,​ ​if​ ​we​ ​want​ ​to​ ​call​ ​it​ ​that,​ ​in​ ​Industry​ ​and​ ​technology​ ​has​ ​made​ ​monetary
transactions​ ​faster​ ​than​ ​a​ ​speeding​ ​bullet.​ ​​ ​Today​ ​it’s​ ​common​ ​to​ ​be​ ​able​ ​to​ ​make​ ​and​ ​pay​ ​for​ ​a
purchase​ ​simply​ ​by​ ​tapping​ ​your​ ​cell​ ​phone.

Efficient​ ​and​ ​convenient?​ ​Yes.
Risky​ ​and​ ​problematic?​ ​If​ ​you’re​ ​reading​ ​this​ ​soundbite,​ ​the​ ​answer​ ​is​ ​probably​ ​“yes.”

According​ ​to​ ​​American​ ​Banker​,​ ​a​ ​”very​ ​effective”​ ​payment​ ​approval​ ​takes​ ​no​ ​more​ ​than​ ​two
seconds.​ ​Faster​ ​purchases​ ​often​ ​mean​ ​less​ ​thoughtful​ ​ones.​ ​​ ​​ ​These​ ​transactions​ ​are​ ​designed​ ​to
be​ ​both​ ​fast​ ​and​ ​irrevocable.​ ​Fast​ ​payment​ ​approval​ ​offers​ ​no​ ​time​ ​to​ ​pause​ ​and​ ​skillfully​ ​consider
the​ ​purchase.

This​ ​being​ ​the​ ​case,
Are​ ​instant​ ​payments​ ​likely​ ​to​ ​exacerbate​ ​existing​ ​societal​ ​problems?
Do​ ​already​ ​vulnerable​ ​people​ ​overspend​ ​even​ ​more​ ​with​ ​effortless​ ​payments​ ​transactions?

This​ ​article,​ ​a​ ​refreshing​ ​challenge​ ​to​ ​the​ ​banking​ ​industry,​ ​implores​ ​banks​ ​to​ ​ponder​ ​the​ ​question
of​ ​whether​ ​“as​ ​fast​ ​as​ ​possible”​ ​is​ ​always​ ​the​ ​right​ ​answer​ ​and,​ ​if​ ​it’s​ ​not,​ ​what​ ​would​ ​be
appropriate,​ ​optional,​ ​and​ ​unobtrusive​ ​“payment​ ​reconsideration”​ ​steps​ ​or​ ​what​ ​constitutencies
should​ ​put​ ​them​ ​into​ ​place?

To​ ​learn​ ​more,​ ​click​ ​​here.

By Carrie Rattle

Carrie Rattle is a Principal at BehavioralCents.com, a website for women focused on mind and money behaviors. She has worked in the financial services industry for 20+ years and hopes to inspire women to better prepare themselves for financial independence. Read More