The new higher limit affects general transactions on the real-time payments (RTP) network, which is operated by TCH. The new value limit was introduced to address the growing transaction volume and users on the network.
There are a number of financial institutions and corporate users that will benefit from the new value limit.
“Increasing the transaction value limit to $100,000 is the next logical step for the growing RTP network,” said Steve Ledford, senior vice president of product strategy and development for TCH.
“Businesses and consumers often want to send higher value payments and the $100,000 limit helps to address their needs,” he added.
The RTP Business Committee — comprised of representatives from community banks, credit unions and TCH member banks — green-lighted the new transaction limit. The committee meets every month to do things like create network rules and weigh in on strategies.
All deposit institutions on the RTP network are required to accept payments up to $100,000. However, individual participants may set a lower value limit for payments they originate.
TCH was founded in 1853 and supports hundreds of banks and credit unions. It is owned by 24 financial institutions — Bank of America, Bank of the West, Barclays, The Bank of New York Mellon, BB&T, Capital One, Citi, Citizens, Comerica, Deutsche Bank, Fifth Third Bank, HSBC, JPMorgan Chase, KeyBank, M&T Bank, MUFG Union Bank, PNC, Santander, State Street, SunTrust, TD Bank, UBS, U.S. Bank and Wells Fargo.
In late October, TCH announced that 15 Jack Henry & Associates financial institutions will use JHA PayCenter to connect to the RTP network. Jack Henry’s JHA PayCenter is a payments hub for banks and credit unions.
More than half of U.S. transaction accounts have adopted the RTP network, which is expected to “lead to the development of modern payment services that will ultimately allow users to exchange non-payment messages and benefit from other value-added features,” according to a TCH press release.