This new limit is driving greater usage among corporate clients, especially for transactions like business acquisitions and real estate settlements.
The higher transaction cap has impacted the bank’s payment patterns. In the first six weeks after the change, large transactions exceeding USD 1 million dominated the value processed through Bank of America’s commercial client RTP network. According to the bank, this new limit is encouraging more strategic types of transfers beyond routine vendor or payroll disbursements.
Higher Transaction Limits Driving Greater Real-Time Payment Activities
Bank of America, a participant in The Clearing House and part of a collaborative effort that developed the RTP network, has seen its clients prioritize speed, transparency, and reliability in their payment processes. Recent data from the bank revealed a 32% increase in transaction volumes on the RTP network since the new limit was implemented.
During this period, transactions above the previous USD 1 million cap made up a larger proportion of all payments by the sixth week compared to the initial phase. This indicates growing comfort with the higher transaction limits among corporate clients.
RTP Network Benefits Highlighted
The RTP network operates continuously, including on weekends and public holidays, providing real-time settlement regardless of time constraints. It also offers payment originators visibility into whether a transaction has been accepted or rejected. The system uses the ISO 20022 messaging standard, allowing detailed remittance information to be included with payments.
In addition to its RTP services, Bank of America’s corporate offerings include card payments, wire transfers, Automated Clearing House (ACH) transactions, and foreign exchange trading. The institution has also developed proprietary tools for payment distribution and recipient management.