In case you have whiplash from keeping track of recent instant payments develops, here’s a shakedown on the latest developments:
- The Clearing House increased the per-transaction limit for its instant payments network (RTP®) from $1 million to $10 million.
- The Federal Reserve plans to increase the limit June 24, 2025 for its own instant payments system (FedNow®) from $500,000 to $1 million.
Both instant payment systems are brand new and are seeing growing adoption rates. Whether financial institutions are enrolling directly in the networks (now totaling 891 RTP® participants and 1,369 for FedNow® as of June 16, 2025) or accessing instant payments through Third-Party Service Providers, adoption continues to accelerate industry-wide.
With all these changes on the instant payments front, how might the payments industry respond?
To put things in perspective, here’s how the average transaction values stack up across other major payment systems:
RTP® can now match the average per-transaction values seen with Fedwire® and CHIPS® thanks to its new $10 million limit, while FedNow® is closing the gap with its upcoming increase to $1 million. Keep in mind, wire transfers are still limited to business days and non-holidays, giving RTP® and FedNow® an edge with their 24/7/365 availability. (We’re still awaiting the outcome of the Federal Reserve’s Request for Comment on expanding Fedwire® to weekends and holidays.)
Same Day ACH currently has a $1 million per-transaction limit, but it relies on three transmission windows with corresponding funds availability, all limited to standard banking days and excluding holidays. FedNow®'s upcoming limit increase will bring it in line with Same Day ACH at $1 million per transaction, while RTP® now surpasses both with a new $10 million limit.
Unlike Same Day ACH, FedNow® and RTP® offer true 24/7/365 availability. Meanwhile, Same Day ACH is still waiting for the outcomes of two Requests for Comment — one on expanding the National Settlement Service to weekends and holidays, and another on adding a fourth processing window.
By July 14, 2025, pending industry approval on June 27, the Federal Reserve’s Fedwire® system is set to transition from its current Fedwire® Application Interface Manual (FAIM) format to ISO 20022. Why is this format change necessary? Both RTP® and FedNow® already use ISO 20022 as their payment format, which is also adopted by over 70 countries. In addition, both SWIFT (the global network for international wire transfers) and The Clearing House’s CHIPS® wire network have recently made the switch to ISO 20022.
Once converted, wires sent from Fedwire® will align more seamlessly with SWIFT and other countries using ISO 20022, eliminating the formatting issues that previously existed with the older FAIM format.
Nacha recently proposed new rules regarding International ACH Transactions (IAT), and years ago, they also approved ISO 20022 guides for mapping remittance and addenda information.
Finally, along with the higher transaction limits, pricing plays a role. Both RTP® and FedNow® cost $0.045 per transaction, while Same Day ACH is more affordable at $0.0035 per transaction, with lower rates for higher volumes. Wire transfers, however, are priced higher at $0.195 to $0.97 per transaction, with potential discounts.
However, wire transfers continue to offer certain advantages over the newer instant payment systems:
- Higher Transaction Limit: Wire transfers still boast a per-transaction limit just one penny shy of $10 billion, making them the preferred choice for large-value commercial payments.
- Ubiquity: Nearly every financial institution has the capability to send and receive wire transfers, a service they’ve offered for decades.
- International Payments: Unlike RTP® and FedNow®, which are currently limited to domestic payments, wire transfers can facilitate international transactions.
Recent changes in payments are pushing for global alignment, better data processing and increased efficiency with new formats and improved interoperability. Updates like higher transaction limits and the shift to ISO 20022 are making instant payments and wire transfers more secure and seamless.
As these changes unfold, financial institutions will need to adapt to meet their consumers’ needs and stay ahead of potential fraud risks. Whether for immediate or large payments, these evolving systems will offer more flexibility. Regardless, EPCOR will do its best to keep you informed on the latest changes to each system to help you in your payments journey.
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