RTP Network Raises Individual Transaction Limit to $10 million

The Clearing House plans to raise its instant payment network’s individual transaction limit.

Starting next year, the RTP® Network will allow individual transactions of up to $10 million, The Clearing House (TCH) announced Wednesday (Dec. 4). The company said the new limit supports growth in areas like real estate, supply chain payments and business-to-business transactions requiring higher transaction amounts.

“We have heard from many of our corporate customers that they have a need to send higher-value instant payments to meet today’s growing business demands,” Matt Richardson, executive vice president of Citizens Bank, said in a news release, noting that this will help corporate customers to send larger payments outside of traditional business hours.

According to the release, the new limit will go into effect on Feb. 9. The limit had been $1 million since April of 2022, when it was increased from $100,000.

“The $10 million transaction limit allows financial institutions and their customers to make larger payments in real time, continually enabling the RTP network to evolve to meet industry needs,” said Margaret Weichert, chief product officer, The Clearing House. “Customers already benefit from the system’s around-the-clock availability, with 42% of transactions taking place overnight, on weekends, or holidays. This aligns with how businesses operate in today’s 24/7 economy.”

Recent research by PYMNTS shows that 68% of companies intend to adopt instant payments via RTP or FedNow® Service within the next two years. This enthusiasm extends across a range of industries, including 81% in consumer and retail, 75% in hospitality and leisure, and 70% in healthcare. These figures underline the fact that companies realize instant payments’ potential to enhance liquidity management and boost customer and vendor engagement.

“Despite this momentum, traditional payment methods remain prevalent,” PYMNTS wrote in September. “According to the report, checks still account for 15% of B2B payments for retailers and manufacturers and 21% for real estate transactions. This persistence indicates that while the benefits of instant payments are acknowledged, full transition is still underway.”

Meanwhile, The Clearing House recently reported a series of transaction-related milestones. For example, the company said earlier this week it had handled a record number of Black Friday transactions, thanks in part to the fact that a number of overseas transactions couldn’t be cleared the day before, as banks were closed for Thanksgiving.

And last month, TCH said its network had set single-day records of 1.46 million transactions valued at $1.24 billion on Nov. 1.