Send Request FedNow vs. RTP® Real-Time Payments: Which Boosts Salesability?

Why FedNow® Has a Competitive Edge Over RTP®

Send Request for Payments FedNow® vs. RTP® (Real-Time Payments): Which is Better for Instant Transactions?

As businesses move towards instant payment solutions, FedNow® and RTP® (Real-Time Payments) are two of the most prominent real-time payment networks in the U.S. Both offer 24/7 instant transactions, but there are key differences in availability, network reach, and use cases.

If you're wondering whether to send a request via FedNow® or RTP®, this guide will break down the similarities, differences, and best use cases for each.

1. What is FedNow®?

FedNow® is a real-time payment system operated by the Federal Reserve, designed to enable instant fund transfers between banks. Unlike traditional ACH payments, wire transfers, or credit cards, FedNow® ensures transactions are processed within seconds, 24/7/365.

Key Benefits of FedNow®:

✅ Instant Bank-to-Bank Transfers – Payments settle within seconds.
✅ Available 24/7/365 – No business day restrictions.
✅ No Middlemen – Transactions occur directly between banks.
✅ Fraud Prevention & Security – Built-in compliance measures reduce fraud risks.
✅ Final Payments – No chargebacks or reversals.

* Best for: Businesses and individuals who need instant, secure, and low-cost transactions.

2. What is RTP® (Real-Time Payments)?

RTP® is a private-sector real-time payments network operated by The Clearing House (TCH). Like FedNow®, RTP® supports instant transactions, but it has been in operation since 2017, giving it an early advantage. However, only banks that are part of The Clearing House network can use RTP®.

Key Benefits of RTP®:

✔️ Real-Time Payment Processing – Funds clear in seconds.
✔️ 24/7/365 Availability – No waiting for business hours.
✔️ Immediate Confirmation – Transactions are final and cannot be reversed.
✔️ Rich Data Transfers – Businesses can send invoices and remittance details along with payments.
✔️ Supports Requests for Payment (RfP) – Businesses can request payments via RTP®.

* Best for: Businesses that work with larger banks enrolled in RTP® and need invoice-based payments with added data fields.

3. FedNow® vs. RTP®: Key Differences

4. When to Use FedNow® Over RTP®

✔️ If your bank is not part of The Clearing House network – FedNow® is open to all U.S. banks, while RTP® is limited.
✔️ If you need government-backed security – FedNow® is operated by the Federal Reserve, ensuring regulatory oversight.
✔️ If you want widespread business adoption – Since FedNow® is available to all financial institutions, it has broader accessibility.
✔️ If transaction limits are a concern – Some banks set different limits for RTP® and FedNow® payments, making FedNow® a more flexible choice.

5. When RTP® Might Be a Better Option

✔️ If your business relies on sending invoices with payments – RTP® supports rich remittance data, while FedNow® has limited capabilities.
✔️ If you need to request payments from customers – RTP® enables Request for Payment (RfP), allowing businesses to request payments directly through the network.
✔️ If your financial institution is part of the RTP® network – Some banks prioritize RTP® transactions over FedNow® for business clients.
✔️ If you need higher transaction limits – RTP® allows up to $10 million per transaction, while FedNow® limits depend on bank policies (up to $1 million).

Final Verdict: Should You Send Requests via FedNow® or RTP®?

Both FedNow® and RTP® are excellent real-time payment solutions. However, the right choice depends on your banking provider, business needs, and required payment features.

* Use FedNow® if you want a widely accessible, Federal Reserve-backed payment system that works with all banks.
* Use RTP® if your business relies on rich transaction data, invoice-based payments, and has a bank that supports RTP®.

Ready to Leverage Instant Payments?

Creation Request for Payment Bank File

Enhance Your Send Request FedNow Real-Time Payments 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 Real-Time 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.