What You Should Know About Real Time Payments (RTP)

March 15, 2023

Real Time 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 at the same time rather than separating the data. This increases efficiency by allowing automations to handle information transfers. In order to keep information secure, you can use a 3D secure payment gateway.

Real Time Payments involve the exchange of financial data and identity verification data between two major 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), 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 Consumers end. These steps happen rapidly in an RTP transaction.

Real Time Payments (RTP) Demand

Digital ecommerce and mobile technology continue to increase the 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 it’s name sounds. Same day ACH can process payments the same day the transaction begins.

The ACH and the Payments System

Companies who now accept ACH payments stand to benefit the most. The key factor in helping these businesses is a 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

Instant PaymentsThe Automated Clearing House (ACH) Network is one of the world’s biggest payment processing methods. ACH is liable for transferring information and cash between banking institutions through batch processing. With batch processing, the trades aren’t immediate because they accumulate through 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, with the aim being to cut the time to process payments from days to minutes.

According to Federal Reserve, instant or one hour transaction clearance is favored by the majority of companies and consumers. In May 2015, the voting membership of the National Automated Clearing House Association (NACHA), which administers the ACH Network, gave consent to an amendment for their Operating Rules to accelerate payment processing.

Instant Payment Opportunities

Because of the large 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 PayKings, 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 and charges.

The right payment processing merchant service company, like PayKings, can help your company grow with new instant payment options.

March 15, 2023 | High Risk Merchant Account | Guest Post