The Clearing House Raises Real-Time Payments Limit
The decision comes as transaction volumes and user volumes continue to rapidly climb.
RTP network operator The Clearing House is upping its transaction limit to $100,000 on Feb. 1, 2020.
The decision to raise the cap on real-time payments from the current $25,000 came amid rising transaction volumes and user volumes, according to The Clearing House. Depository institutions on the RTP network will be required to accept payments up to $100,000, but individual participants can set lower value limits for payments they originate, it said.
“Increasing the transaction value limit to $100,000 is the next logical step for the growing RTP network,” The Clearing House SVP of Product Strategy and Development Steve Ledford said. “Businesses and consumers often want to send higher value payments and the $100,000 limit helps to address their needs.”
The Clearing House is owned by several commercial banks. However, last September, the Columbus, Ohio-based Corporate One Federal Credit Union became the first credit union-specific financial institution to become a funding agent, which allows it to manage positions in the RTP Network’s joint Federal Reserve bank account on behalf of Corporate One’s member credit unions. Corporate One has $3.8 billion in assets and about 800 members.
In December, the Irondale, Ala.-based Corporate America Credit Union also became a funding agent for the RTP network. Corporate America has $2.9 billion in assets and about 500 members.
“Access to the RTP network is key for our member credit unions wanting to serve their members with the most up-to-date technology. By becoming a funding agent, CACU is now a partner that can make that process easier,” Corporate America Chief Innovation Officer Lisa Coffey said.
Last May, Corporate One joined The Clearing House’s RTP Business Committee, which is a group that provides input and guidance about the RTP network’s rules and strategy. Three other credit unions also joined the committee, including the Rochester, N.Y.-based ESL Federal Credit Union, Vienna, Va.-based Navy Federal Credit Union and Houston-based Energy Capital Credit Union.
ESL has $6.8 billion in assets and about 380,000 members. Navy Federal has $110 billion in assets and about 8.9 million members; Energy Capital has $224 million in assets and about 17,000 members.
The news follows similar moves from ACH Network operator NACHA, which plans to increase its per-transaction dollar limit for same-day ACH transactions to $100,000 from $25,000 in March 2020. NACHA estimated that the change will make 97% of all ACH business-to-business payments eligible for same-day ACH, up from 91% that are currently eligible.