New York, August 5, 2019 – In response to today’s announcement by the Federal Reserve that it is proceeding with the development of its own real-time payments system, The Clearing House (TCH), which launched the country’s newest real-time payments network in late 2017, made the following statement:
Nearly two years ago TCH, the country’s private sector payments operator, put into market real-time payments capabilities for the U.S. through the RTP® network. Today, the RTP network reaches over 51% of the demand deposit accounts in the country and is demonstrating steadily-growing transaction volume. The network was built for and is available to every U.S. depository institution, regardless of size, on equitable terms (no discounts for volume or minimum volume requirements). Providing the functionality to clear and settle payments immediately, along with robust messaging capabilities to support product innovation and faster, safer, and smarter digital commerce, the RTP network was built to serve all Americans by enabling every U.S. depository institution with these important capabilities. Importantly, innovations in real-time payments will benefit those who live paycheck to paycheck by reducing the need for pay day loans or the fees from check cashing charges or overdrafts.
We are already seeing how these real-time capabilities are providing for tremendous advances in speed, convenience, and security in how Americans receive and send funds. We are excited about the many ways that this revolution in payments will continue to deliver new benefits to depository institutions and their customers. While we will stay abreast of the Fed’s efforts to develop its own real-time payments system which may become available in 2023 or 2024, our focus will remain on ensuring that the RTP network has reach to all depository institutions.
Since the network’s launch in late 2017, TCH has been working with banks, credit unions and their technology providers to enable connections to the RTP network. Increasingly, consumers and commercial customers are demanding real-time payment capabilities now and depository institutions on the RTP network are already offering these innovative capabilities to their clients.
TCH remains dedicated to the RTP network’s equitable flat pricing model that is the same for all participants where there are no volume discounts, volume commitments, or monthly minimums. Unlike existing payments networks, such as ACH, the RTP network does not have operator fees for receiving payments and it provides incentives for retail banks whose customers respond to requests for payment.
About The Clearing House
Since its founding in 1853, The Clearing House has delivered safe and reliable payments systems, facilitated bank-led payments innovation, and provided thought leadership on strategic payments issues. The Clearing House is the operator of RTP® network, a real-time payment system that modernizes core payments capabilities for all U.S. financial institutions, and is the only private-sector ACH and wire operator in the United States, clearing and settling nearly $2 trillion in U.S. dollar payments each day, representing half of all commercial ACH and wire volume. The Clearing House is owned by 24 financial institutions and supports hundreds of banks and credit unions through its core systems and related services. Learn more at www.theclearinghouse.org.
The Clearing House