Real-Time Payments – A Faster Way to Make Payments
Real-Time Payments are a new type of payment that settle instantly, within 15 seconds from being sent, and offer many advantages over other payment options like ACH or Wire. Learn more about the benefits of using Real-Time Payments and how they can give you transparency and accuracy in final settlements.
The Business Impact of Real-time Payments (RTP)
Real-Time Payments (RTP) is a new payment method launched by The Clearing House (TCH) that allows consumers and businesses to send and receive immediate payments, 24/7/365, directly from their bank accounts.
Besides the immediate funds availability benefit, RTP provides three beneficial features for both consumers and businesses:
- Transparency. The ability for the immediate confirmation of the Payment
- Cash Management. The ability to improve liquidity with immediate deposits
- Messaging. The ability for consumers, businesses and Financial Institutions to send messages to each other
Real-Time Payment Frequently Asked Questions
Is Real-Time Payments (RTP) just about faster payments?
While speed is a key benefit, real-time payment confirmation and messaging capabilities also provide the ability to include more information with the transaction, such as extended payment data. RTP also facilitates enhanced messaging between participants such as invoicing (using Request for Payment), user acknowledgement of the payment, and user inquiry about the payment (using Request for Information).
What is a scenario where RTP is effective?
Last minute payment to capture a discount:
- The customer notices an invoice which has a discount if paid immediately
- The user logs into online banking and completes the payee name, payee’s bank routing number, payee’s account number, and amount, then clicks the Make Payment button
- The payment is sent immediately and received by the payee within 15 seconds. A notification to the receivables manager is immediately sent that the payment was received
What are the differences between RTP and same-day ACH?
|Real-Time Payments||Same-Day ACH||Wire|
|Typical Funds Availability
||Immediate||During transaction day||Immediate|
||Immediate||End of day||End of day|
||24x7x365||During business hours||During business hours|
What types of transactions are eligible for RTP?
Currently, US based (domestic) credit transactions up to $1,000,000 per item are eligible.
Does RTP only process business-to-business (B2B) transactions?
No, the RTP system supports consumer, small business, and commercial transactions.
Ready to Get Started?
Contact your relationship manager, call 1-800-724-2240 or visit your local branch to learn how.