We set our payment range at $.01 to $9,999.00. It was basically a risk decision and was not associated with any particular reg, as far as I know. We do have certain restrictions, such as you must be paying a person or business in the U.S. and you should not make court-ordered payments, such as child support, via our bill pay service.
We outsource this product support to a vendor specializing in internet bill pay.
I personally use the service and highly recommend it from a consumer point of view. It is very convenient.
There are a number of data protection issues relevant to this service. Since we are on the internet, we have to perform intrusion testing and third-party vendor due diligence. The system was impacted a few months ago (not our bank) and immediate intervention actions were taken by the processor. The system was inoperable for several days and some payments were lost when the system was shut down. We personally contacted each customer impacted and sent cashier's checks out for their bills that were lost. All bill pay customers were issued new PINs when the system was brought back up.
I thought it was interesting that our procedures for handling the situation were reviewed by our regulator a few weeks later
when they came in to perform our safety and soundness exam. They knew about it immediately after it happened.