What is a reason for allowing 'requests for returns' in FedNow?

Allowing 'requests for returns' in the FedNow system is primarily aimed at addressing issues related to fraud. This functionality provides a mechanism for financial institutions and their customers to correct mistakes or fraudulent transactions quickly and efficiently. When a fraudulent transaction occurs, being able to initiate a return helps not only to recover lost funds but also to maintain trust in the payment system.

The option related to fraud emphasizes the necessity of protecting consumers and financial institutions from financial losses due to unauthorized transactions. This safeguard is a crucial aspect of a robust payments system, as it adds an extra layer of security, allowing users to feel more confident when making electronic payments. Thus, allowing requests for returns plays a critical role in mitigating the risks associated with fraudulent activities in the fast-paced environment of real-time payments like FedNow.