What You Should Know About Real Time Payments (RTP)

Jun 10, 2024 | Payments

Real Time Payments, or RTP, is a new technology that allows data and payment information to flow faster than ever. Fundamentally, the difference from a standard transaction is that Real Time Payments transfer money and messaging simultaneously rather than separating the data. This increases efficiency by allowing automation to handle information transfers. To keep information secure, you can use a 3D secure payment gateway.

Real Time Payments involve exchanging financial and identity verification data between two significant entities, the Biller and the Consumer. Additionally, there are a few steps that take place after this exchange. The Biller makes a request for payment (RFP), and the Consumer submits their payment information. Next, once it’s confirmed and received on the Biller’s end, the transaction is finalized by confirming it on the Consumer’s end. These steps happen rapidly in an RTP transaction.


Real Time Payments (RTP) Demand
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Real Time Payments (RTP) Demand


Digital e-commerce and mobile technology continue increasing demand for real time payment processing. Also called instant payments, it offers new opportunities for many US financial institutions.

RTP is similar to the Same Day ACH. Moreover, this concept is as straightforward as its name sounds. Same-day ACH can process payments the same day the transaction begins.


The ACH and the Payments System

Companies that now accept ACH payments stand to benefit the most. The critical factor in helping these businesses is rapid information exchange.

  • Credit transfers exchange remittance information.
  • RFPs support electronic invoices and electronic billing
  • The sender receives a payment receipt and status message




American bank-owned The Clearing House (TCH) launched its real time payments system (RTP) in 2017. A number of the largest banks in the world own TCH. ACH, on the other hand, is a banking association and payment firm that dates back to 1853.

ACH Payments and Batch Processing

ACH Payments and Batch Processing


The Automated Clearing House (ACH) Network is one of the world’s most prominent payment processing methods. ACH is liable for transferring information and cash between banking institutions through batch processing. The trades aren’t immediate with batch processing because they accumulate throughout the day and process simultaneously in one batch.

To make the change, TCH has partnered with MasterCard and Vocalink. Vocalink has worked on RTP systems in a few other countries, including Thailand, Singapore, and the UK, aiming to cut payment time from days to minutes.

According to Federal Reserve, most companies and consumers favor instant or one-hour transaction clearance. In May 2015, the voting membership of the National Automated Clearing House Association (NACHA), which administers the ACH Network, consented to an amendment to their Operating Rules to accelerate payment processing.


Instant Payment Opportunities

Instant Payment Opportunities


Because of the significant improvements in payment processing, retailers, financial institutions, and other businesses should alter and enhance their infrastructure. Correspondingly, the same-day option provides a chance to improve business models, services, and products.

With this in mind, it is essential to work with a reliable payment processor, like Signature Payments, who can offer you the best possible solutions for high risk merchant accounts and get you approved for secure payment processing. Some payment processors can and will hurt your business by providing poor service and slapping you with unnecessary fees.