Instant payments
Bank-to-bank payments that settle in seconds, at any hour of any day, with funds available to the recipient right away.
What instant payments are
Instant payments are account-to-account transfers that clear and settle in real time, around the clock. In the US, two networks carry them: RTP, run by The Clearing House since 2017, and the Federal Reserve's FedNow Service, launched in 2023. The recipient can use the funds within seconds.
How it works
The sender's bank submits a payment, and the network checks it with the receiving bank before settling it in seconds. Both networks also carry request for payment messages, so a business can ask a customer to pay instantly.
- 01 · SUBMIT The sender's bank sends the payment to RTP or FedNow, at any hour.
- 02 · CONFIRM The receiving bank checks the account and accepts or rejects it within seconds.
- 03 · SETTLE The network settles it, and the funds are available to the recipient at once.
| Feature | RTP network | FedNow Service |
|---|---|---|
| Operator | The Clearing House | Federal Reserve Banks |
| Launched | 2017 | 2023 |
| Maximum per payment | $10 million | $10 million |
| Hours | 24/7/365 | 24/7/365 |
Banks can set lower limits than the network maximum for their own customers.
When businesses use it
- Payouts to gig workers, sellers and insurance claimants
- Payroll and earned wage access outside banking hours
- Account funding and bill payments that post right away
- Treasury transfers and larger payments, up to $10 million each
- Pay-ins through request for payment, so customers approve and pay in one step
Cross River connects partners to both RTP and FedNow through a single API, with settlement 24/7/365 and payments of up to $10 million. It also supports request for payment for instant pay-ins. See instant payments at Cross River.