The Clearing House, operator of the RTP network, will raise the individual transaction limit to $10 million.
Leaders said the increased limit supports growth on the network in areas including real estate, supply chain payments and business-to-business transactions that require larger 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, Citizens executive vice president said in a release. “Raising the RTP transaction limit to $10 million will allow our corporate customers to send larger payments for a variety of needs, including payments outside of traditional business hours.”
The new $10 million individual transaction limit will be effective Feb. 9, 2025. The RTP transaction limit has been $1 million since April 2022, when the limit 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,” Margaret Weichert, The Clearing House chief product officer, said. “Customers already benefit from the system’s around-the-clock availability, with 42 percent of transactions taking place overnight, on weekends, or holidays. This aligns with how businesses operate in today’s 24/7 economy.”
The Clearing House said a $10 million transaction limit on the RTP network provides the ability to send larger payments for many business reasons, including:
- Real estate/title insurance: Commercial and higher-value residential real estate payments can be sent instantly, 24/7, which allow for closings after business hours or on weekends.
- Merchant settlement: Larger merchants and retailers can receive daily instant payments, instead of more traditional merchant payouts that are received a day or more later.
- Supply chain: Manufacturers can pay suppliers instantly so products and supplies can be shipped sooner.
- Cash concentration: Businesses can move funds to a single account to optimize liquidity or consolidate funds at month- or quarter-end.
More than 285,000 businesses each month send instant payments over the RTP network through financial institutions on the system. In November, the network surpassed $500 billion in instant payments since it launched seven years ago, and it now averages over 1 million payments per day.
In October, the RTP network experienced a record 31.9 million transactions valued at $25.7 billion.