How to use Real Time Payments (RTP)

What RTP is, how it works, and how it’s different from ACH
Erica Melzer avatar
Written by Erica Melzer. Updated over a week ago

What is RTP?

  • a network of banks which agree to recognize one another’s transactions 24/7/365

  • an alternative to ACH that allows payments to clear and settle almost instantly

⭐️ Note: The RTP network includes 61% of US bank accounts. See a list of the participating banks here

What are the similarities and differences between RTP and ACH?

Similarities

  • ACH and RTP both send funds to a bank

  • both require a Routing and Account number

Differences

  • RTP is for sending only

    • ACH can both send and pull funds

  • RTP can use 140 characters of remittance data

    • ACH uses 80 characters of addenda data

  • RTP is irreversible

    • whereas ACH has mechanisms for reversals

  • ACH works for all bank accounts in the US

    • RTP is currently available for 61% of US bank accounts

  • ACH has processing cutoff times (anything initiated after this time will process on the next business day)

    • RTP is processed instantaneously, regardless of time or day

How do I use RTP?

  • Vendor must have a bank account in Routable, added by either the vendor or your team

  • Create a payable as you normally would, while being sure to select an RTP-enabled account

How do I reverse a Real Time Payment?

Real Time Payments are intended to be instant and irreversible. So, the RTP Network does not have a returns process in place, like ACH transactions or credit card chargebacks.

If an RTP payment is sent in error, the sender can request that the funds be returned in certain circumstances, but the receiving financial institution is not obligated to return the funds.

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