Activity

Bank of America (BofA) clients are actively utilizing the new $10 million transaction limit for U.S. real-time payments. This increase, implemented by The Clearing House (TCH) from the previous $1 million limit, is enabling new use cases, particularly in business-to-business (B2B) payments.
BofA is one of the first financial institutions to offer this enhanced capability to its corporate customers. In the first six weeks since the limit was raised, transactions over $1 million have accounted for more than half the value of all U.S. real-time payments processed by BofA.
This expanded limit is opening up real-time payment (RTP) for transactions such as:
* Real estate and deal closings: These traditionally high-value transactions can now benefit from the instant settlement and 24/7 availability of RTP.
* Just-in-time supplier payments: Businesses can optimize working capital and cash flow by making payments precisely when needed.
* Other corporate activity: The increased cap provides more flexibility for various B2B payment needs that previously relied on wire transfers or checks.
According to BofA, the RTP network offers key features that are attractive to clients:
* 24/7 operation: Payments are settled immediately, even on weekends and holidays.
* Transparency: Originators have real-time visibility into the transaction status.
* Speed: Recipients receive funds within seconds.
* Detailed remittance information: RTP uses the ISO 20022 standard, allowing for robust data exchange with payments.
This move by The Clearing House and its adoption by major banks like BofA marks a significant step in the evolution of real-time payments in the U.S., offering businesses a more efficient and flexible alternative for high-value transactions.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brokers