Real-Time Payments (RTP)
A payment network enabling instant, irrevocable bank-to-bank transfers 24/7/365.
What is Real-Time Payments (RTP)?
Real-Time Payments (RTP) is a payment network operated by The Clearing House that enables instant, final bank transfers 24/7/365—including weekends and holidays. Unlike ACH which batches and settles over days, RTP transactions complete in seconds and are immediately available. RTP supports rich data with each transaction and provides instant confirmation. The FedNow Service is a similar real-time payment system from the Federal Reserve.
Why It Matters
RTP transforms cash flow by eliminating delays. Payments sent Friday night arrive instantly, not Tuesday morning. For payroll, gig economy payouts, urgent vendor payments, and real-time account funding, RTP provides capabilities impossible with traditional rails. As adoption grows, RTP is becoming essential infrastructure for modern treasury operations.
Related Terms
ACH Payment
An electronic bank-to-bank transfer through the Automated Clearing House network.
Same-Day ACH
ACH payments that settle within the same business day instead of 2-3 days.
Wire Transfer
A direct, immediate bank-to-bank transfer typically used for large or urgent payments.
Instant Payouts
Immediately disbursing funds to recipients rather than waiting for standard settlement.
Frequently Asked Questions
RTP is instant (seconds) and irrevocable. ACH takes 1-3 days and can be returned. RTP operates 24/7/365; ACH processes on business days. RTP typically costs more per transaction.
For some use cases. RTP is ideal for urgent, immediate payments. ACH remains more economical for high-volume, batch payables where instant settlement isn't required.
Currently $1 million per transaction, though individual banks may set lower limits. Limits have increased over time and may continue rising.
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