Real Time Payments Network

Bank Note Money Usd Funds Bills Us-dollar DollarThe clearing house has released business principles that outline the operation of the real time payments (RTP) Network. A full set of guidelines is here.

These are important inasmuch as they set out key points, among them most importantly:

TCH runs the RTP network as a utility for the benefit of the industry and RTP fees shall continue to be flat for all participants regardless of size, and shall not include volume discounts or minimum volume requirements.

It does though, contains a super-clause, which is typical of the monopolistic “free market” here in America. In an effort to restrain competition, and limit the ability of smaller financial institutions, the clause reads:

These principles apply so long as the RTP network is the only provider of faster real-time clearing and interbank settlement.

So here we are again, with another great example of limited competition. Who would provide an alternative, well, as listed in a prior post, the big tech companies are not likely to sign-up and get locked into RTP charging. Also, the Federal Reserve is considering a Faster Payments Network.

Sigh, here we go again, more glacial progress and lack of choice. Don’t stop ordering checkbooks anytime soon.

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Author: Mark Cathcart

Formerly an Executive Director of Systems Engineering and a Senior Distinguished Engineer at Dell. Prior to that, an IBM Distinguished Engineer working for the Systems Group in NY and Austin. I'm currently "retired until further notice".

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