FedNow® Real-Time Payment: The Future of Instant Transactions

What is FedNow® Real-Time Payment?

FedNow® Real-Time Payment vs. RTP®: Understanding the Key Differences
FedNow® Real-Time Payment is a real-time payment system launched by the Federal Reserve, enabling businesses, financial institutions, and individuals to send and receive instant payments 24/7/365. Unlike traditional payment methods like ACH, wire transfers, and credit cards, which can take hours or days to settle, FedNow® ensures payments process within seconds, including weekends and holidays.

Similarly, RTP® (Real-Time Payments), operated by The Clearing House, also offers instant payments for financial institutions and businesses. However, there are key differences between FedNow® and RTP® that businesses should understand when choosing the right real-time payment network.

FedNow® vs. RTP®: Key Differences

Feature	FedNow® Real-Time Payment	RTP® (Real-Time Payments)
Operator	Federal Reserve	The Clearing House
Speed	Instant (seconds)	Instant (seconds)
Availability	24/7/365	24/7/365
Network Accessibility	Open to all U.S. banks & credit unions	Limited to TCH network banks
Transaction Limits	Up to $1M per transaction (bank-dependent)	Up to $10M per transaction
Settlement Finality	Immediate & irreversible	Immediate & irreversible
Best For	Businesses of all sizes, B2B, payroll, supplier transactions	Larger banks, high-value transactions, enterprise-level payments

How Does FedNow® Real-Time Payment Work?

1️⃣ A business or individual initiates a payment request via the FedNow® network.
2️⃣ The transaction is processed instantly, with funds transferred in seconds.
3️⃣ The recipient receives immediate confirmation and access to funds.
4️⃣ The payment is final and cannot be reversed, ensuring secure and seamless transactions.

Unlike ACH (1–3 days) or wire transfers (limited hours & high fees), FedNow® Real-Time Payment delivers instant, 24/7 availability, making it a cost-effective and efficient alternative.

Benefits of FedNow® Real-Time Payment vs. RTP®

✅ 1. More Inclusive Network (FedNow® vs. RTP®)

• FedNow® is accessible to ALL U.S. financial institutions, while RTP® is limited to The Clearing House network.
• More banks and credit unions can participate in FedNow®, making it widely available for businesses.

✅ 2. Instant Settlement, 24/7/365

• Both FedNow® and RTP® provide real-time transactions 24/7, including weekends and holidays.
• No more waiting for ACH batch processing, bank cut-off times, or wire processing delays.

✅ 3. Lower Transaction Costs vs. Wire Transfers & Credit Cards

• Both FedNow® and RTP® eliminate interchange fees typically found in credit card processing.
• FedNow® offers lower costs than wire transfers while maintaining real-time settlement.

✅ 4. Secure & Final Transactions

• FedNow® and RTP® transactions are final and irreversible, reducing fraud risks and chargebacks.
• Enhanced compliance and security measures protect businesses from unauthorized payments.

✅ 5. More Flexibility with Transaction Limits

• RTP® allows up to $10M per transaction, making it ideal for larger corporate payments.
• FedNow® offers flexible limits (up to $1M per transaction, bank-dependent), suitable for businesses of all sizes.

Who Should Use FedNow® Real-Time Payment vs. RTP®?

📌 Use FedNow® if your bank is NOT part of The Clearing House network and you need instant payments.
📌 Use RTP® if your financial institution is already connected to The Clearing House and requires higher transaction limits.
📌 For businesses requiring broader coverage, an interoperable processor that supports both FedNow® and RTP® is recommended.

FedNow® Real-Time Payment Use Cases

💼 B2B Supplier & Vendor Payments – Instantly pay suppliers to strengthen business relationships and avoid late fees.
💰 Payroll & Contractor Payments – Pay employees and freelancers immediately, even on weekends.
🏢 Intercompany Transfers – Move funds between business accounts seamlessly.
⚡ E-commerce & Online Payments – Enable real-time checkout without credit card processing fees.
📈 Invoice & Subscription Payments – Reduce accounts receivable delays for better cash flow.

How to Get Started with FedNow® Real-Time Payment

🔹 Check with Your Bank or Payment Processor – Ensure your financial institution supports FedNow® transactions.
🔹 Set Up a FedNow®-Enabled Business Account – Open an account to send and receive instant payments.
🔹 Integrate with Payment Systems – Use ERP software like QuickBooks®, NetSuite, SAP, or other financial tools.
🔹 Train Your Team – Educate employees on how FedNow® Real-Time Payment can improve financial efficiency.

🚀 Upgrade to instant payments with FedNow® today! Contact us below to enable real-time transactions and optimize business payments.

Creation Request for Payment Bank File

Enhance Your FedNow Real-Time Payment Payment Requests with FedNow’s ISO 20022 Messaging

Streamline Payments with Advanced Request for Payment Options:

Harness the power of FedNow's Request for Payment system to transform how you manage invoices and remittances. Our platform supports diverse data integration options, allowing payees to incorporate detailed invoice data directly within the RfP message or link to a comprehensive Merchant Page.

Flexible Invoice Details with ISO 20022 Messaging:

Leverage the flexibility of ISO 20022 messaging standards in our RfP system. You can choose to display crucial payment details directly in the message with a concise 140-character description, or through a dynamic "Hyper-Link" leading to a detailed Merchant Page. This Merchant Page can be hosted either on your website or TodayPayments.com/HostedPaymentPage.html through our seamless integration solution.

Customizable Merchant Pages for Enhanced Customer Experience:

Create a Merchant Page that not only details all the MIDs you own but also presents these options attractively to your customers through the RfP. This customization ensures that whether your payer opts for Real-Time Payment, Same-Day ACH, or Card transactions, they can easily navigate and complete their payments through a simple click on the hyperlink provided on your Merchant Page.

Call us today and receive the .csv or .xml FedNow® or Request for Payment (RfP) file you need—all during your very first phone call! We guarantee that our comprehensive reports integrate flawlessly with your bank or credit union. As pioneers in recognizing the benefits of RequestForPayment.com, we have stayed years ahead of our competitors. Although we are not a bank, our role as an "Accounting System" within the Open Banking ecosystem enables us to work with billers to create effective RfP files that seamlessly upload to the biller's online banking platform. U.S. companies rely on our expertise to learn how to deliver the RfP message directly to their bank with precision.

Our advanced solution, Today Payments' ISO 20022 Payment Initiation (PAIN.013), demonstrates how to create a Real-Time Payments Request for Payment file that sends a clear message from the creditor (payee) to its bank. Most financial institutions support the import of messaging and batch files for both FedNow® and Real-Time Payments (RtP), ensuring smooth processing. Once the file is correctly uploaded, the creditor’s bank processes the payment through a secure "Payment Hub"—with The Clearing House serving as the RtP Hub—and relays the message to the debtor's (payer's) bank. This streamlined approach not only accelerates transaction processing but also enhances transparency and reliability for all parties involved.

... easily create Instant Payments RfP files. No risk. Test with your bank and delete "test" files before APPROVAL on your Bank's Online Payments Platform. Today Payments is a leader in the evolution of immediate payments. We were years ahead of competitors recognizing the benefits of

Same-Day ACH and Real-Time Payments funding. Our business clients receive faster availability of funds on deposited items and instant notification of items presented for deposit all based on real-time activity. Dedicated to providing superior customer service and industry-leading technology.