🤔Problem
RTP Network Participants are unsure of what to disclose to account holders regarding no foreign RTP payments.
📖Rule - Operating Rule E. Prohibited Transactions. 2. Foreign Payments.
“Foreign Payments - The RTP System shall be used by Participants only to effectuate RTP Payments between a Sender and Receiver whose Accounts are located in the United States of America. To the extent a Sender sends or a Receiver receives a Payment on behalf of another Person, whether such Sender or Receiver is a Payment Service Provider or not, the Person on whose behalf the Sender sends or the Receiver receives must be a resident of or otherwise domiciled in the United States. Participants must inform Senders and Receivers of their obligation to comply with this restriction regarding Payments sent or received on behalf of other Persons and with OFAC regulations in the legal terms that govern their Customers’ use of RTP.”
Source: RTP Operating Rules
🗣️Breakdown
This applies to all RTP Participants. (Receive, Send, & PSP)
- RTP Payments can only be transmitted between a Sender and Receiver whose Accounts are located in the United States of America.
- You have to inform Receivers that they may only receive RTP Payments on behalf of residents of or otherwise domiciled in the United States.
- You have to inform Senders that they may only send RTP Payments on behalf of residents of or otherwise domiciled in the United States.
By engaging with NPG for your RTP Audit you will gain valuable insights, with tailored recommendations on how to mitigate risk and drive growth.
For more information on how we can help you improve your instant payment processes, email us at info@neachgroup.com, or select "Request a proposal" at the top of the page.