#United States #New York #Bank of America #RTP Network #Real-Time Payments

Bank of America Clients Adapt to New $10 Million Real-Time Payment Limit

In a significant shift for U.S. financial transactions, The Clearing House has raised the limit on real-time payments from $1 million to an impressive $10 million. This new cap has ignited a flurry of activity among Corporate clients of Bank of America, who are now exploring diverse use cases within their business-to-business (B2B) transactions.

As one of the pioneering banks to embrace this change, Bank of America has been instrumental in shaping the RTP® (Real-Time Payments) network. The bank collaborated closely with fellow financial institutions, technology partners, and the U.S. Federal Reserve to facilitate the development of this innovative payment system. Behind this transformation lies the bank's commitment to providing enhanced transaction capabilities to its corporate customers.

Enhanced Transaction Capabilities

For many businesses, the ability to conduct transactions of up to $10 million represents a game changer. AJ McCray, the head of Global Payments Products at Bank of America, highlighted that their clients have traditionally utilized the RTP system for payments like vendor reimbursements, employee salaries, and customer returns. With the newly raised limit, however, businesses can now consider large-scale transactions such as property purchases and significant corporate deals.

In fact, just six weeks into this expanded capability, Bank of America's corporate clientele was already taking full advantage of the increased transaction limit. Transactions surpassing $1 million began to make up more than half of the total value processed through the RTP network by the bank, signaling a robust acceptance of these new options.

Jay Davenport, co-head of GPS Global Corporate Sales at Bank of America, emphasizes the advantages of the instant nature of real-time payments, noting that they optimize cash flow and working capital management for businesses. `RTP payments encapsulate the features our customers most desire, including convenience, transparency, and reliability,` he explains.

Key Features of the RTP Network

The RTP network is designed for seamless operations around the clock, ensuring payment processing is available 24/7, even during weekends and holidays. Below are some notable attributes of the RTP system:

• - Immediate Settlement: Transactions are settled instantly, no matter the time of day.
• - Transparency: The originators of payments benefit from visibility regarding the transaction status, allowing them to know whether a payment has been accepted or declined.
• - Speed: Recipients of payments experience swift processing, getting their funds within seconds.
• - Standardization: Utilizing the ISO 20022 messaging standard, the platform allows for rich remittance information to accompany transactions, enriching the context of financial exchanges.

As the adoption of real-time payments continues to grow, businesses are keen to explore new use cases that can arise from this capability. The potential now exists to facilitate `just-in-time` supplier payments, finalize real-estate deals with speed and efficiency, and execute seamless account-to-account transfers.

A Trusted Partner for Corporate America

Bank of America is proud to serve an overwhelming majority of corporate clients, including 94% of the Fortune 500 and 73% of the Global Fortune 500 companies. With its cutting-edge payment capabilities, Bank of America is not only enriching the RTP experience but also providing additional offerings such as commercial cards, ACH, wire services, and foreign exchange solutions. Furthermore, their innovations like Recipient Select and Digital Disbursements cater to a variety of business needs, elevating the standard of service.

Operating across the U.S. and in over 35 countries, Bank of America is a dominant player in the financial landscape. The bank's commitment to small and middle-market businesses is equally strong, with robust support through a diverse range of products and services. For more information on Bank of America and its innovative financial solutions, visit their newsroom or register for email alerts for the latest updates.

In a rapidly changing financial ecosystem, Bank of America's proactive measures in adapting to current trends underscore its position as a leader in the banking and financial services industry. This new payment limit not only enhances business transactions but also positions clients strategically for future growth and efficiency in an increasingly digital world.