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?
ACH and RTP both send funds to a bank
both require a Routing and Account number
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.