This article provides an overview of Instant (RTP®, FedNow®) payments and guides you through the process of sending them. You will also find a comparison between Instant payments and traditional ACH transfers to help you choose the best delivery method for your business needs.
What are Instant (RTP®, FedNow®) payments?
Instant payments allow you to move money from your bank account to your vendor’s bank account in seconds, 24/7/365. While traditional bank transfers (ACH) are processed in batches and can take several days to settle, Instant payments settle immediately—even on weekends and holidays.
Routable uses two major networks to facilitate these transfers:
- RTP® (Real-Time Payments): A private network owned by The Clearing House
- FedNow®: A public network operated by the Federal Reserve
When you select the Instant delivery option, Routable automatically routes the payment through the best available network based on your vendor’s bank compatibility. You can view the full list of participating financial institutions for RTP® and FedNow® to see if your vendor's bank is supported.
Comparing Instant and ACH payments
| Feature | Instant (RTP®, FedNow®) | Expedited ACH |
|---|---|---|
| Delivery speed | Within seconds | 2-3 business days, subject to cutoff times |
| Availability | 24/7/365 (including holidays) | Business days only |
| Finality | Irreversible once sent | Can be reversed or returned |
| Bank coverage | Most major US banks (~85-90%) | All US banks (100%) |
| Remittance data | 140 characters | 80 characters |
How to send an Instant payment
To send an Instant payment, first follow the steps to create a payable →. Once you have entered your vendor and bill details, use the following steps to select the delivery method:
- In the Payment details section of the payable, select Bank transfer as the payment method
- Under the Delivery option dropdown, select Instant (RTP®, FedNow®).
- Note: If the vendor's bank does not support Instant payments, you will see a warning message or the bank account will be disabled
FAQ
How do I reverse an Instant payment?
Instant payments are final and irrevocable. Unlike ACH transfers, which have a window for reversals, the funds in an Instant payment are settled immediately. If you send a payment in error, you will need to contact your vendor directly to request a refund outside of the Routable platform.
What happens if my vendor's bank doesn't support RTP or FedNow?
If a vendor's bank is not part of either network, selecting the Instant delivery option will display a warning message. In these cases, we recommend using same-day ACH.