The Clearing House (TCH), which operates the RTP network, announced Wednesday (April 6) it is increasing the value limit for payments on the network to $1 million.
In an announcement posted on the company website, TCH said the increase comes as the transaction volume and number of users on the network continue to grow.
“Increasingly, corporate users are looking for ways to transfer higher value payments for various use cases, including real estate closings, commercial loan funding, merchant settlement, supplier payments, and more,” the company said.
This increase, from the current limit of $100,000, comes weeks after a similar increase to the same-day ACH transaction limit. Speaking to PYMNTS last month, TCH Vice President Jason Carone said that the increase means that same-day ACH volumes across U.S. ACH networks will continue to rise this year. He added that regular ACH limits are typically much higher.
Read more: The Clearing House: ACH Paves Way for Real-Time Payments On-Ramp
The RTP network limit increase gives financial institutions and their customers another similar choice for moving up to $1 million through faster payments.
“The RTP network individual transaction limit increase to $1 million dramatically expands the University’s use cases for real-time payments,” Jeff Rayis, director of Treasury and Financial Management at Michigan State University, said in the TCH announcement.
“Being able to send larger value payments will be useful for many business-to-business payment applications, such as supplier payments, loan payments, joint-venture and partnership arrangements, and research obligations.”
“Financial institutions and their customers have asked for the ability to send larger value RTP payments for a variety of payments needs, and we are responding,” said Jim Colassano, senior vice president of Product Development for The Clearing House. “Financial institutions on the RTP network will be able to send RTP payments, up to $1 million, for business-to-business purchases, insurance payouts, real estate closing, and more.”
Under the new system, depository institutions using the RTP network must accept payments up to $1 million. However, individual participants can impose a lower value limit for payments they originate, TCH said.
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