The Clearing House is a membership organization that owns and operates the payment system infrastructure of large commercial banks in the United States. In November 2017, it launched the RTP network as the first new core payments infrastructure in the U.S. in over 40 years and provides instant settlement of payments across financial institutions.
The Clearing House introduced the RTP network in November 2017; this was the first new core payments infrastructure to be introduced in the U.S. in over forty years to provide the ability to make real time payments settlements.
The RTP network expanded its coverage to reach seventy-one percent of U.S. demand deposits and technically reached ninety percent of U.S. demand deposits through participating financial institutions of all types and sizes.
The Federal Reserve launched the FedNow service in July 2023 as an alternative to RTP for making real time payments although RTP has a wider scope of acceptance.
Centralized network operated by The Clearing House with connections to federally insured depository institutions; processes individual transactions continuously rather than in batches
Not applicable - RTP is a payment infrastructure network without AI/ML components
Based on official Clearing House documentation and industry sources
| Service | Cost | Details | Source |
|---|---|---|---|
| Credit Transfer | $0.045 per transaction | Fee charged to sending financial institution for each credit push payment | The Clearing House RTP network fees |
| Request for Payment (RfP) | $0.01 - $0.11 per request | Fee for sending payment requests; varies slightly by source reporting | TCH participant fees |
| Pre-funded Balance Account Drawdowns | $2.00 per drawdown | Fee for liquidity management drawdowns | TCH network fees |
| Network Connectivity | Monthly recurring fee | Charged to participants with direct network connection; amount not specified publicly | Finzly RTP pricing analysis |
| End-User Transaction | $0.25 - $2.00 per payment | Actual customer cost set by participating banks who markup network fees; no volume discounts | Third-party analyses (Plaid, Lightspark) |
| Feature | RTP (TCH) | FedNow (Fed) | ACH |
|---|---|---|---|
| 24/7 Availability | Yes | Yes | No (batch only) |
| Settlement Speed | Seconds | Seconds | 1-3 days |
| Transaction Limit | $10M | Varies by FI | $1M |
| Messaging Standard | ISO 20022 | ISO 20022 | NACHA format |
| Request for Payment | Yes ($0.01-$0.11) | Yes ($0.01) | No |
| Network Fee per Credit | $0.045 | — | $0.26-$0.50 avg |
| Uptime SLA | 100% | 99.99% | High but scheduled downtime |
| Participants | 1,130+ FIs | Growing | All FIs |
| Launch Year | 2017 | 2023 | 1970s |
| Operator Type | Private (bank-owned) | Federal Reserve | NACHA |
The RTP system has a greater number of participants in its network (over 1,130 participants compared to over 500 participants for the FedNow system) and has been operational since 2017 while FedNow will be first operational by year end. The RTP system has also demonstrated 100 percent uptime since it was launched. FedNow does offer lower priced RfP rates ($0.01) versus RTP ($0.01 to $0.11) however FedNow does not have the same level of maturity in terms of its ecosystem as the RTP system.
The RTP system is the best choice for banks looking for immediate production usage that can scale and provide reliability; however, the FedNow system may be more appealing to those banks who prefer to use federal infrastructure.
The RTP system allows for instant settlements whereas ACH takes anywhere from 1 to 3 days to settle; however, RTP costs significantly more than ACH. Additionally, RTP currently reaches approximately 65 percent of U.S. Demand Deposit Accounts (DDA) and offers rich ISO 20022 data; however, ACH has universal coverage, although no ability to settle in real time.
The RTP system should be used for any urgent payments where speed and data-richness are required. On the other hand, the ACH system should be used for large-volume, low-cost batch processing.
The RTP system has allowed institutions to use it to provide both B2B and B2C/P2P services to consumers with $10 million limits per service whereas Zelle is focused primarily on consumer-to-consumer (P2P) services. Furthermore, RTP offers a Request for Payment (RfP) and Document Exchange for merchants while Zelle does not have any business payment request capabilities.
The RTP system is the best option for providing institutional payment infrastructure for banks; however, the Zelle system is ideal for simple consumer transfers.
As of today, the RTP system processes over $4 billion in transactions every single day with uniform pricing for all financial institutions regardless of size. In contrast, many other countries charge tiered prices for different types of financial institutions and/or charge minimums or maximums depending upon the institution type; however, the RTP system has a model based solely on the volume of transactions processed.
The RTP system provides a flat pricing structure for real-time payments that are available to all financial institutions regardless of their size.
RTP is a new (launched in 2017) real-time payment network enabling immediate transfers of funds between two U.S. bank accounts 24/7/365. These transfers are processed in seconds, and once initiated cannot be revoked, as opposed to ACH transfers which take days.
RTP settles immediately versus ACH's 2-3 days, and at $0.25-$1 versus wire transfer at $25-$50, operates 24/7, versus both ACH and wire, and only supports "push" credit payments with rich remittance information contained within the ISO 20022 data payload.
RTP provides support for credit-only "push" payments for various use cases such as payroll, utility bills, insurance premiums, business-to-business (B2B) payments, and marketplace payouts. In addition, RTP also includes the ability to include rich remittance data with each payment.
Any federally insured U.S. depository institution can join the RTP network either directly or through Third-Party Service Providers (TPSP). The RTP network currently reaches 71% of all U.S. demand deposit accounts.
Yes, all RTP payments will be irreversible once completed with immediate confirmation from the sender using the ISO 20022 standard and eliminating the possibility of insufficiencies because RTP only provides credit.
Both provide 24/7 instant payments but RTP was launched in 2017 as the first instant payment system in the United States and FedNow has been available since 2023. RTP is accessible to 71% of the country's demand deposit account holders via its private network; FedNow is accessible through Federal Reserve master accounts.
Consumers can gain access to RTP through their financial institution's mobile app or service (for example, through a Zelle integration).
Transaction costs associated with RTP vary by bank and the number of transactions per month; they range from $0.25 to $1 and are significantly lower than wire transfer costs ($25-$50) and similar to ACH transaction costs; however, RTP provides an instantaneous settlement of funds.
The Clearing House RTP network is the existing United States real-time payments infrastructure, which has operated since 2017 with a proven record of availability around-the-clock, 365 days a year, and reaches 71% of the country's demand deposit account holders. It addresses several significant limitations of both ACH and wire transfers that include the ability to make an instantaneous, irreversible, low-cost credit payment.
RTP is the mature option for U.S. banks wishing to implement real-time payments infrastructure with proven scalability and national reach.
The RTP network has been in operation since 2017 and currently covers approximately 71% of U.S. demand deposit accounts with a technical reach of 90%. It enables 24x7x365 instant irrevocable credit payments in the form of ISO 20022 messages for as low as $0.25 to $1.00 per transaction. In addition to supporting payroll, bill payments, insurance and B2B transactions, it also supports rich structured data that can be used by all FIs either directly or through third-party sponsor processors (TPSPs).
Good - comprehensive technical information from The Clearing House site, industry analyses, and bank resources. Pricing varies by institution. Consumer-facing details depend on individual bank implementations.
Currently, the RTP network reaches 71% of U.S. Demand Deposit Accounts with technical access to 90% of them through direct participant and TPSP relationships. Ninety percent of participants are community banks indicating the accessibility to RTP for smaller FI’s.
The RTP network utilizes international standards for messaging in the form of ISO 20022, which allows for rich structured data (Invoice Numbers, Reservation Details), reducing manual reconciliation required for flat ACH formats.
Used by +20 largest U.S. commercial banks such as JPMorgan Chase to provide a stable and innovative commitment that is unmatched by new networks.
Examples of proven use of the application include payroll (employee payments made in real time), utilities (bill payments processed in real time), insurance premiums, and marketplace payouts over 7+ years of operation.
Third-party services (banks) and banks allow small financial institutions to access RTP without paying for the cost of direct integration. A key to achieving 90 percent community bank participation.
| Specification | RTP Network |
|---|---|
| Message Standard | ISO 20022 |
| Transaction Limit (Current) | $1,000,000 |
| Settlement Mechanism | Pooled master account (Fed NY) |
| Processing Speed | Within seconds |
| Availability | 24x7x365 |
| Confirmation Model | Accept/Reject with immediate confirmation |
Funds will be settled immediately and irrevocably at the point of payment acceptance.
The payment processing system is available 24 hours a day, 7 days a week, 365 days a year (including weekends and holidays).
This allows for safe, debit-equivalent requests for payment to occur between parties.
The sender will receive immediate notification of whether the payment was successful or failed.
The ISO 20022 message format supports the exchange of extended remittance information (for example, invoice numbers).
Since this is a push based model for making payments, there are no pulls or debits, which can reduce the risk of fraud.
Once payment authorization occurs, it will be irrevocable.
| Use Case Category | Specific Applications | Primary Users | Business Impact | Network |
|---|---|---|---|---|
| B2B Payments | Supplier payments, invoice collection, joint-venture transfers | Businesses, corporates, suppliers | Improved cash flow and working capital management | RTP |
| Payroll & Earned Wage Access | Instant wage payments, contractor compensation | Employers, gig platforms, contractors | Immediate liquidity for workers; improved retention | RTP |
| P2P & Consumer Payments | Person-to-person transfers, bill payments | Consumers, individuals | Instant availability; improved customer experience | RTP |
| Insurance & Payouts | Claim payouts, policy payments | Insurance companies, policyholders | Faster settlement; reduced processing costs | RTP |
| Fiat Off-Ramps | Crypto-to-fiat conversions, digital wallet cash-outs | Crypto platforms, digital wallets | Instant liquidity conversion | RTP |
| Step | Process Stage | Actor(s) | Action | Duration | System Response |
|---|---|---|---|---|---|
| 1 | Initiation | Sender FI/Customer | Customer authorizes payment through FI channel; FI validates sufficient funds | Variable | Payment ready for RTP network submission |
| 2 | Message Submission | Sender FI, RTP Network | Sender FI submits ISO 20022 pacs.008 message to RTP network operator | <1 second | Message receipt acknowledgment |
| 3 | Validation & Screening | RTP Network | Validates format, applies controls, performs sanctions screening | 1-2 seconds | Validation complete (accept/reject) |
| 4 | Routing to Receiver | RTP Network, Receiver FI | Payment message routed to receiver FI for acceptance | Seconds | Receiver FI notified |
| 5 | Receiver Acceptance | Receiver FI | Receiver FI accepts or rejects payment (pacs.002 response) | <1 second | Acceptance confirmation received |
| 6 | Settlement Execution | RTP Network, Fed NY | Immediate debit sender master account, credit receiver master account | Instant | Settlement complete and irrevocable |
| 7 | Status Notifications | RTP Network, FIs | Positive/negative confirmations sent to both FIs | <1 second | Sender and receiver notified |
| 8 | Customer Posting | FIs, Customers | FIs post to customer accounts; receiver makes funds available immediately | Variable | Payment complete |
