Tips, Trends and Tidbits

Who doesn’t want their money faster!? 

GTSB is excited to announce that we’re bringing faster payment functionality to our customers!

GTSB is one of only about 200 Financial Institutions in the United States to offer RTP (Real Time Payments) Credit Receive to our customers!

With RTP, funds transferred from an RTP Credit Push enabled account are deposited to our customer’s GTSB account, and available for use, within seconds of the transfer being initiated – 24/7/365!

We’re seeing transfer credits to our customers coming from sources like PayPal, Square, and Venmo (when the immediate transfer option is chosen).   We’re also seeing Account to Account transfers initiated by our customers from accounts they hold with Credit Push enabled FI’s such as Chase, Fifth Third, etc.

Financial Institutions and Companies such as these, with RTP Credit Push functionality, now use the TCH/RTP payment rail if the receiving bank is RTP Credit Receive eligible (Insert GTSB here) vs sending via ACH or Same Day ACH.  This eliminates ANY and ALL delays in payment availability!

 

Not excited yet, it helps to understand what TCH RTP is. 

TCH, The Clearing House, created a brand new “payment rail”, the Real Time Payment (RTP) Network.   Just like checks, ACH, and/or wire transfers, RTP is simply another way for our customers to receive funds.   The difference, RTP provides 24/7/365 instant settlement between the sender/receiver accounts and the sending/receiving Financial Institutions.  There is ZERO delay in payment or settlement.

 

How does it affect you, our customers?

Because we participate in the TCH RTP Payment network, we are providing our customers the “ability” to receive their funds instantly from senders who can send funds through the RTP network.  Prior to our participation, these funds would have been sent to our customer through a different payment rail (check, wire, ACH, etc.).  This is not something that our customer can control and/or choose.  It is all done behind the scenes and automatically.  If both the sending and receiving financial institution participate in RTP, the TCH RTP payment network will be used over other options.  Our customers do NOT yet have the ability to Send Credit Push transactions through RTP.

Many of our customers may have already received a payment via RTP and not even realized it.  Take for instance, our customers who select the “Instant” credit option when cashing out their Venmo and/or PayPal accounts, they are now using RTP.  These cash outs used to come in via “Same Day ACH”.  They could take hours or, if sent on a weekend, days.  These are now credited to the customer account within seconds.  The customer pays the same fee they would typically pay when selecting this option; however, now they truly get their funds instantly.  (This fee is NOT ours.  We DO NOT charge a fee for this service.)

Customers sending funds from accounts they hold at other FI’s with Credit Push capabilities, considered “A2A” payments, are using RTP.  Example:  I have an investment account at Chase Bank.  I want to take money from my account at Chase and send it to my account at GTSB.  I initiate the transfer through my Chase online banking.  Instead of Chase sending those funds via ACH and it taking 1- 3 business days or longer, I now get my funds immediately!

 

How do our customers know if a payment will be and/or has been sent via RTP?

Simple answer, without knowing the senders FI, they don’t.  That said, it will appear differently in their account activity.  If they receive the credit via RTP once, they will continue to receive it this way in the future.

Using Venmo as an example, when cashing out my Venmo account before, it appeared as follows on my statement.  This was just the “normal” cash out, not instant; however, both types of Venmo cash out payments (instant and regular) were previously sent via ACH, with instant being sent Same Day ACH.  Non-Instant Venmo cash out will continue to appear this way on customer statements.

  • $208.00                 Payment Venmo Carrie Kehrer

I wanted to see just how “instant” the RTP payment was.  With CompassXD open to my account activity, I initiated a cash out from my Venmo account, selecting “Instant” as my cash out method.  Immediately after hitting submit on my phone, I refreshed my CompassXD screen, and the funds were in my account!  Because I selected “Instant”, and GTSB participates in RTP, Venmo sent the funds via RTP vs. ACH.  (Had we not been participants, it would have come via Same Day ACH sometime the same day.)  Instant Venmo cash outs will appear as follows on statements.

  • $84.71                   SHAZAM RTP Pymt To: Carrie Kehrer  From: Venmo

As of today, only businesses and/or individuals with accounts held at the following FI’s can send RTP Credit Push transactions.

  • JP Morgan Chase
  • PNC
  • Bank of America
  • Fifth Third
  • Wells Fargo
  • CBW Bank

Thus far, we have seen the following examples of use cases.

  • Fund DDA from virtual account a.k.a “cash out” (PayPal, Venmo, Digit, Coinbase)
  • Merchant expedited settlement (Square)
  • Real-time payroll disbursement (Paychex, DailyPay, Earnin)
  • Account-to-Account transfer (transfers using a digital banking app)
  • Bill payment (Bill.com)
  • Disbursement of loan proceeds (Amrock, BMG Money)
  • Cash out of a money management application (Digit)
  • Gambling payouts (Mazooma)
  • Real estate closing disbursements (Amrock)

Our joint news release with SHAZAM, has posted to their Company News site:  Germantown Trust & Savings Bank is SHAZAM’s newest Faster Payments program participant.   Check it out!

If you have any questions, please feel free to reach out to Carrie, Jim, Krista, or Roger.