Private-sector ACH operator The Clearing House has launched a real-time payments system, according to the company.
The core payments system infrastructure operator, which is owned by 25 banks and operates, said in an announcement this week that its real-time payments (RTP) system is the first new core payments infrastructure in the United States in more than 40 years. The real-time payments system is open to all U.S. depository institutions and meets the objectives of the Federal Reserve Faster Payments Task Force, it said.
BNY Mellon and U.S. Bank initiated the first real-time payment on the system on November 13. The company said it is working with credit unions, community banks and other financial institutions to drive adoption.
“At a time when our clients are asking for the ability to conduct their business with greater speed, efficiency and security, RTP will make everyday financial tasks such as paying bills, issuing invoices, making payroll or settling insurance claims faster, safer and more satisfying for businesses and consumers across the country,” PNC Bank Chairman, President and CEO William S. Demchak said. Demchak is also chairman of The Clearing House's supervisory board.
According to the company, the real-time payments system can transfer funds, as well as allow users to request payments and provide information about a payment in order to help with back office reconciliation.
The system uses technology from Vocalink, which is owned by Mastercard.
“RTP will support more seamless and efficient e-invoicing, bill pay, insurance claim payments, cash on delivery payments and more,” The Clearing House said. “RTP also provides transparency and certainty with immediate confirmation notices that payments have been sent and received and instantaneously settled. Confirmations provide businesses the ability to free up working capital by more precisely managing cash flow and make life less stressful for consumers on tight budgets.”
The company said currently it settles nearly $2 trillion in payments per day, representing half of all commercial ACH and wire volume.
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