Welcome to the December 2024 Innovating Payments Executive Summary. In this month’s issue, the federal bank regulatory agencies announced their third notice requesting comments to reduce the regulatory burden. The agencies divided the regulations into 12 categories and are now soliciting comments for three.
In other news, the CHIPS® network celebrated a new record for transaction volume on Black Friday by clearing and settling 1,083,550 payments valued at $2.63 trillion. Meanwhile, PYMNTS reported that Black Friday shoppers shopped earlier and spent more, with turnout reaching its highest point since 2020.
The Clearing House announced that effective Feb. 9, 2025, it will raise the individual RTP® transaction limit to $10 million, enabling financial institutions and their customers to make larger payments in real time. This announcement follows the RTP network's record-setting day on November 1, when 1.46 million transactions valued at $1.24 billion flowed through the network.
Nacha requests comment on two proposed amendments to the Nacha Operating Rules regarding Same Day ACH and information and perspectives on “Faster ACH” topics. The deadline for both is Friday, Dec. 13.
Read on to learn more.
Federal Bank Regulatory Agencies Seek Comment
In a joint news release, the federal bank regulatory agencies (the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency) announced their third notice requesting comments to reduce the regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations at least once every 10 years to identify outdated or otherwise unnecessary regulatory requirements for their supervised institutions.
The agencies divided the regulations into 12 categories and are now soliciting comments for three categories: Rules of Procedure, Safety and Soundness, and Securities. The public has 90 days from publication in the Federal Register to comment on the relevant regulations.
In 2025, the agencies will request comment on regulations in the remaining categories, asking the public to identify those they believe are outdated, unnecessary, or unduly burdensome.
Additionally, the agencies will hold a series of outreach meetings where interested parties may comment on applicable regulatory requirements directly to the agencies. They will publish details about the outreach meetings when available.
To learn more, click below:
Federal Register Notice: Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (PDF)
Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) website
Black Friday
CHIPS Celebrates Black Friday by Smashing Payments Record
In other news, the CHIPS® network, a private-sector high-value clearing and settlement system operated by The Clearing House, set a new record for transaction volume on Black Friday by clearing and settling 1,083,550 payments valued at $2.63 trillion.
"Financial institutions around the world rely on the CHIPS network to reliably clear and settle U.S. dollar payments," said Richard Dzina, Senior Vice President, Core Product Management, The Clearing House, in a news release. "Black Friday's record shows that the CHIPS network plays an integral part in facilitating efficient global trade and helps to maintain the U.S. dollar as the world's leading reserve and settlement currency."
Several factors contributed to Black Friday's record volume. The CHIPS network, a USD clearing and settlement system for international payments, saw many transactions from foreign banks that did not observe the U.S. Thanksgiving holiday. These transactions, which could not be sent on Thanksgiving, contributed to the increased volume on Friday. Additionally, the CHIPS network typically experiences higher volumes on the last business day of the month.
Another factor is the increased volume since adopting the ISO 20022 message format in April. This transition aligned CHIPS messages with global high-value payment systems, enhancing cross-border payment efficiency and information content for CHIPS participants.
Sales, Not Sentiment, Drive Black Friday Turnout
Meanwhile, Black Friday shoppers shopped earlier and spent more, with turnout reaching its highest point since 2020, according to PYMNTS. “Good deals” on nice-to-have items fueled shoppers’ experiences.
The PYMNTS Intelligence special report revealed:
> 62% of U.S. consumers made at least one purchase on Nov. 29, representing a jump from 53% in 2023
> 39% of Black Friday shopping happened before Nov. 29, as consumers sought to secure deals and avoid crowded stores
> 72% of shoppers made online purchases, with in-store purchases supplementing customers’ online shopping
> 75% of Generation Z and Millennial consumers participated in Black Friday shopping
> Shoppers interested in luxury brands spent the most on Black Friday, averaging $471.99, with 15% using BNPL. Those focused less on luxury brands and more on the look and feel of luxury spent an above-average $379.06. Shoppers uninterested in luxury items spent less, averaging $230.92, with just 2% using BNPL.
For additional survey findings, visit PYMNTS.com.
Nacha
Nacha requests comment on two proposed amendments to the Nacha Operating Rules regarding Same Day ACH and information and perspectives on “Faster ACH” topics. The deadline for both is Friday, Dec. 13.NEACH will be filing comments on behalf of its membership, so look for more information on those responses. Details of the two requests for comment (RFCs) follow.
Same Day ACH
Nacha is proposing two amendments to the Nacha Operating Rules, as highlighted on its website:
> Introducing a fourth daily Same-Day ACH processing window to align with the close of the business day in the Pacific Time Zone
> Accelerating funds availability for certain non-Same Day ACH credits
These amendments aim to enhance the efficiency and accessibility of the ACH network.
Nacha asks that you please review the survey questions before beginning your response so that you can gather information and comments from all impacted areas of your organization before responding to the questions. If your institution wants to respond individually, you can download the materials on the left side of this page on the Nacha website and respond online.
To learn more about these proposed amendments, click here.
Faster ACH Topics
Additionally, Nacha requests industry perspectives on “Faster ACH,” but not specific to Same Day ACH topics. These topics are not proposals to amend the Nacha Operating Rules; industry input could lead to Rules proposals later.
Topics include:
> 2-day ACH credits
> Encouraging same-day returns
Again, Nacha asks that you review the survey questions before beginning your response to allow time to gather information and comments from all impacted areas of your organization. If your institution wants to respond individually, you can download the materials on the left side of this page on the Nacha website and respond online.
To learn more, visit the Nacha website.
The Clearing House (TCH)
Higher $10 Million RTP Network Transaction Limit
The Clearing House, the operator of the RTP network, the largest instant payments system in the United States, will raise the individual transaction limit to $10 million, a Dec. 4 news release reports. This increase supports the network's growth in areas such as 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, Executive Vice President, Citizens said in the 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 February 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.
New RTP Records
In other RTP news, according to a company news release, the RTP network, operated by The Clearing House, is now averaging over 1 million payments per day. On Nov. 1, the RTP network set single-day records with 1.46 million transactions valued at $1.24 billion.
In October, the RTP network processed a record 31.7 million transactions valued at $25.4 billion, an increase of 6.2% and 9%, respectively, from September. Additionally, since July 2024, payment value on the RTP network has risen by 11.4%, while transaction volume has climbed by 12%.
“It is exciting to see that the RTP network is supporting real-world payment needs of consumers and businesses with almost half of payments happening after banking hours, Margaret Weichert, Chief Product Officer at The Clearing House, said in the release. "With the holiday season upon us, consumers can send money instantly to pay for gifts, holiday meals and other festivities, while small businesses can get paid in real time."
NEACH
If you’ve not yet downloaded NEACH’s new whitepaper, Payments Operations: The Next Generation through the Lens of Staffing and Talent, check it out. It may help you set the tone for 2025!
Drawing on generational workforce research, insights from industry leaders, and real-world case studies, this white paper explores generational differences in the workplace, how to foster cross-generational collaboration, traits to look for in new hires, and more. The paper concludes with several considerations and recommendations for financial institutions that want to maximize the opportunities and minimize the obstacles inherent in a multi-generational workforce.
You can download the white paper here.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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