Real-Time Payments Funding Agents 101

For real-time payments to work, every transaction is made possible by a pre-funded balance account that allows the transaction to clear and settle at the same time that the actual transaction is being made. For example, on The Clearing House’s (TCH) RTP® network, every credit union and bank on the network has a position on the RTP funding account, which is held at The Federal Reserve Bank of New York. A funding agent can manage a financial institution’s position on their behalf and provide financial institutions with the liquidity needed on weekends and holidays, which ensures that their account retains a sufficient balance.

In a Callahan-hosted webinar, Toby Thomas, VP, Product Marketing Strategist at Corporate One FCU, and Mark Majeske, SVP Faster Payments at Alacriti, discussed what credit unions should know about using funding agents to connect to real-time payment rails.