The Clearing House, a bank-owned association that operates the largest private ACH network in the U.S., announced that it and its member banks will, over the next several years, develop a real-time payments system to meet customers’ expectations. The newer platform is intended to replace the fast but not real-time technologies on which today’s clearing system is based.
Features of this system will include direct person-to-person payments, immediate notification of funds availability and transfer, lower costs than other payment options and greater control over cash flow for cash-constrained customers, the Clearing House said. To enhance security and privacy, payments will be routed with one-time “tokens” so that account information is not compromised.
“The digital economy moves in real time and our customers expect us to keep pace,” said Clearing House Chairman Richard Davis, who is chairman, president and CEO of U.S. Bancorp, Minneapolis. “We will work with the industry to build a real-time payment infrastructure, which will enable consumers to pay and get paid securely and conveniently.”