Announcing Intra-Bank Payments

Today we’re pleased to announce Intra-Bank Payments, powered by Modern Treasury. Banks commonly refer to this as “On Us” payments. Our Intra-Bank offering integrates with your bank's existing On Us payments capabilities, allowing you to process payments without using interbank settlement networks, provided both the sending and receiving accounts are at the same bank. Intra-Bank payments are available at Wells Fargo and J.P. Morgan, with support for more banks coming soon.

Addressing Three Functional Needs

Intra-Bank Payments was designed to address three primary customer needs. Specifically, businesses were looking to:

• Leverage extra cut-off times during the day to process same-day payments, thus reducing float and providing faster settlement to their customers
• Process payments on Saturdays, ensuring quicker settlement and added convenience for all parties (available at JP Morgan)
• Process ACH returns faster to help reduce the impact of chargebacks and returns

As we’ll discuss below, solving these issues serves both B2B and B2C companies looking to reduce risk and improve efficiency of their payment operations.

How Intra-Bank Payments Work

Intra-Bank Payments are an attractive alternative to processing the payment via the clearing house when internal and external accounts are both at the same bank.

Let’s take the example of BestBrand, a company that banks with AmazingBank.

1. BestBrand wants to make a payment to their vendor, SuperSupplies, a business that also uses AmazingBank.
2. Because both companies use AmazingBank, the bank provides the option to process the transaction within the bank, without processing the payment via the clearing house.
3. AmazingBank will process the payment internally—this process resembles a book transfer but between two accounts owned by different parties.

Key Benefits of Intra-Bank Payments

Intra-Bank Payments afford a number of high-value benefits. These include:

• Faster access to funds for debits by way of a debt facility
• One-day returns processing, as opposed to the standard two days
• Payment processing on Saturdays at banks like JPMorgan Chase
• Reduced payment fees — intra-bank processing costs the same as standard ACH while providing more benefits than same-day ACH
• Additional cut-off times during the morning and evenings for same-day settlement

Explore Intra-Bank Payments

Learn more about the added convenience and security of Intra-Bank Payments by reaching out to us.