Real Time Payments is an electronic payment network governed by The Clearing House that runs 24 hours a day, 7 days a week. This allows participating financial institutions to send and receive payments immediately, at any time, including weekends and holidays. Because of this immediate availability, Real Time Payments are not reversible. This network works in a similar way to other payment methods like Same Day ACH, however, besides being faster, it only allows credit push payments.
What if I send a payment in error? There is a process in place called Request for Return. This feature allows the sender of the payment to request the funds to be returned, however, this is subject to the discretion of the receiver and the receiving bank.
How is this different from peer-to-peer services such as Zelle and Venmo? Peer to Peer services rely on multiple payment rails to send funds. Depending on the sending and receiving banks and their agreements, the funds may be sent via ACH or RTP. The sender has no ability to choose the payment rail used, and the timeframes and monetary limits may vary by service and financial institution. Victor sends RTP payments through the network's rails without the need for an additional peer to peer service.
Updated 3 months ago