What is a step involved in processing 'requests for returns' in FedNow?

The initiation stage is a critical part of processing requests for returns within the FedNow system. During this stage, the request for return is formally created and captured, indicating the origin of the return request. This step ensures that all relevant information is collected, including details about the transaction that is being returned and the reason for the return.

Proper handling during the initiation stage is essential for a smooth process. It sets the groundwork for the subsequent stages of the return process, which involve verifying the request and determining its eligibility. Ensuring that the information is accurate at this point helps avoid delays and issues later in the processing. This emphasis on proper initiation underscores the importance of a structured approach to returns within the faster payments landscape, promoting efficiency and clarity in transaction management.