Why are international payments often considered irrevocable?

International payments are often considered irrevocable primarily because they are typically high in value and settled through national Real-Time Gross Settlement (RTGS) systems. RTGS systems process transactions on a real-time basis, which means that once the payment is initiated and processed, it is finalized immediately and cannot be reversed. This characteristic is particularly important in international payments, where large sums of money are being transferred across borders and the risk of reversal can lead to significant financial complications and losses.

Furthermore, the nature of these transactions often involves multiple currencies and regulatory frameworks, making the process complex and reliant on the instantaneous finality offered by RTGS systems. When a payment is completed through such a system, the funds are guaranteed to be transferred to the recipient's bank account and are not subject to reversal, unlike other payment mechanisms that may allow for chargebacks or disputes.

Therefore, the irrevocability of international payments can largely be attributed to their settlement through these robust and immediate systems designed to handle significant financial transactions securely and efficiently.