Search
 
Analysis

Real-Time Payments Have Arrived

Real-time payments—and receivables—are a reality, already benefiting some treasurers’ supply chain and reconciliation processes.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Prepare for payments transformation. In November 2017, The Clearing House (TCH) and 25 partnering banks launched the first new core payments structure in the United States in more than 40 years. The new system permits real-time payment clearing, marking a major change for treasury operations that have been using the one- to two-day Automated Clearing House (ACH).

Qualifying payments are domestic, interbank electronic transactions. Their payment messages are transferred, and funds are available to the payee, in real time —literally within seconds—on a 24×7 basis. The new system, dubbed RTP for “real time payments,” was designed and built through the collaborative efforts of TCH and its partnering financial institutions. RTP meets the objectives of the Federal Reserve Faster Payments Task Force, which has been tasked by the Fed to identify and assess alternative approaches for implementing safe, ubiquitous, and faster payment capabilities in the United States.

The new system follows late on the heels of the Faster Payments Scheme Limited (FPSL) launched by the United Kingdom in 2008. FPSL moves mobile, Internet, telephone, and standing-order payments quickly and securely, in nearly real time, 24 hours a day. Seventeen banks and building societies are participants in FPSL, with more than 400 financial institutions now offering the service to over 52 million account holders.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

How to Upgrade Your Accounts Receivable Strategy

How to Upgrade Your Accounts Receivable Strategy

Kimberly Isaacs |

Shifting to electronic payments, optimizing the client experience, and re-evaluating customers’ credit can help shape your organization’s A/R future.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.