Bank of America Observes Shift in Corporate Payment Behavior

Following an increase in the US Real-Time Payments (RTP) transaction limit from USD 1 million to USD 10 million, Bank of America has noted a change in how its corporate clients handle payments. This rise in transaction limits is driving more extensive use among these clients for various high-value transactions.

The higher RTP limit has significantly impacted payment patterns, particularly within the realms of business acquisitions and real estate settlements. During the initial six weeks post-limit increase, the majority of payment values processed by Bank of America through the RTP network came from transactions surpassing USD 1 million.

Company officials highlighted that this updated limit is encouraging clients to adopt new strategies beyond standard vendor or payroll disbursements, thereby facilitating more strategic financial transfers.

Increased Use of High-Value Transactions on RTP Network

Bank of America played a role in the development of the RTP network along with other financial institutions and technology providers. According to representatives from the bank, immediate settlement through RTP is helping manage liquidity and work capital effectively. They indicated that clients are increasingly valuing speed, transparency, and reliability in their payment infrastructure.

The introduction of the new limit saw a 32% increase in transaction volumes on the RTP network by Bank of America’s commercial clients. By week six, transactions over the previous USD 1 million cap comprised a larger share of total payments, indicating growing acceptance of the increased limits.

The RTP network operates continuously and supports real-time settlement regardless of time or day. It also provides visibility to payment originators regarding transaction status. Payments via this system use ISO 20022 messaging standards for detailed remittance information.

Bank of America’s corporate services offer card payments, wire transfers, Automated Clearing House (ACH) transactions, and foreign exchange transaction services. Additionally, the institution has created proprietary tools for payment distribution and recipient management.