RTP is a fast payment network that moves money between bank accounts in seconds, not days
RTP stands for Real-Time Payments. It is a system that lets banks send money from one account to another almost instantly — usually within seconds — rather than the one to three business days that older payment methods take. RTP is run by The Clearing House, a private banking organization, and works alongside the traditional banking networks that have handled payments for decades.
When you send money through RTP, the receiving bank gets notified right away and can post the funds to the recipient's account immediately. This is different from ACH transfers (Automated Clearing House), which batch payments together and process them on a schedule, or wire transfers, which are fast but expensive and often require manual review.
RTP is still newer than ACH or wires. Not every bank offers it yet, and not every account type can use it. But the number of banks joining the network has grown steadily, and the system is designed to eventually become as common as ACH transfers are today.
Key Takeaways
- RTP moves money between bank accounts in seconds, while ACH transfers take one to three business days and wire transfers require manual processing.
- Your bank must be connected to the RTP network for you to send or receive money this way — check with your bank to see if they offer it.
- RTP works for person-to-person payments, bill payments, payroll, and business transfers, though availability depends on your bank and the recipient's bank.
- RTP transfers are typically cheaper than wire transfers and faster than ACH, making them useful for urgent payments or time-sensitive situations.
How RTP differs from ACH and wire transfers
ACH transfers are the most common way Americans move money between banks. They are cheap or free, but they batch payments together and process them on a fixed schedule — usually overnight or the next business day. If you send an ACH transfer on a Friday afternoon, the money may not arrive until Monday or Tuesday.
Wire transfers move money the same day, often within hours. But they cost $15 to $50 per transfer, require a bank employee to review the transaction, and cannot be reversed once sent. Wire transfers are also used for large sums and international payments, which makes them slower and more expensive than they need to be for routine domestic transfers.
RTP sits between these two. It is nearly as fast as a wire — money arrives in seconds — but it costs little or nothing, like ACH. It is also reversible if something goes wrong, and it does not require a person to manually approve each transaction. The trade-off is that fewer banks offer it yet, and you may not be able to use it with every recipient.
Which banks and payment types support RTP
The Clearing House publishes a list of banks connected to the RTP network on their website. Large banks like Bank of America, Wells Fargo, JPMorgan Chase, and Citibank are members, as are many regional and community banks. Credit unions are joining more slowly, so if you bank with a credit union, RTP may not be available to you yet.
Even if your bank is on the network, not all account types or payment types may support RTP. Some banks limit RTP to checking accounts, or only offer it for bill payments and not person-to-person transfers. The best way to know what you can do is to log into your bank's app or website and look for a "send money" or "pay bills" option — if RTP is available, it will usually be listed as an option alongside ACH and wire transfer.
RTP is also used for payroll deposits and business-to-business payments, though this depends on whether both the employer's bank and the employee's bank support it. Some employers have started offering same-day payroll through RTP, which means workers can access their pay on the day they earn it rather than waiting for the next pay period.
When RTP is useful and when it is not
RTP makes sense when you need money to move fast and the recipient's bank is on the network. Common situations include paying an urgent bill, sending money to cover an overdraft, reimbursing a friend for an expense, or moving money between your own accounts at different banks. Because RTP is free or very cheap, it is also better than a wire transfer for any of these situations.
RTP is not useful if the recipient's bank does not support it — in that case, you will fall back to ACH or wire transfer. It is also not the right choice for international payments, which still require wire transfers or specialized services. And if you are sending a very large sum and want the protection of a bank employee reviewing the transaction, a wire transfer may still be the safer choice despite the cost.
For routine bill payments where you have a few days' notice, ACH is still fine and costs nothing. RTP is an option when ACH is too slow, but not all situations require it.
How to send money using RTP
The process depends on your bank's app or website. Most banks that offer RTP put it in the same place where you would send an ACH transfer or pay a bill. You enter the recipient's name and account number, the amount, and a description. The system then checks whether the recipient's bank is on the RTP network. If it is, the transfer will go through RTP and arrive in seconds. If it is not, the bank will usually offer to send it as an ACH transfer instead.
Some banks let you choose which method to use. Others automatically pick the fastest available option. Either way, you should see confirmation that the money has been sent, and the recipient should see it arrive almost immediately if RTP was used.
If something goes wrong — for example, you send money to the wrong account — RTP transfers can be reversed, unlike wire transfers. Contact your bank right away and they can usually recall the payment or reverse it before the recipient withdraws the money.
The future of RTP in banking
RTP is still growing. The Clearing House continues to add banks to the network, and the Federal Reserve is also building its own real-time payment system called FedNow, which launched in 2023. FedNow works similarly to RTP and will eventually give more banks and credit unions access to instant payments.
Over time, real-time payments are likely to become the default for most domestic transfers, the way ACH is today. This means faster access to money for workers, faster bill payments, and less need for expensive wire transfers. But this shift will take years, and ACH will remain common for a long time.
For now, RTP is a useful option if your bank offers it and you need money to move fast. As more banks join, it will become available to more people and for more types of payments.
Frequently Asked Questions
Does RTP cost money to send or receive?
Most banks do not charge for RTP transfers, or charge very little — typically less than $1 if they charge at all. This is much cheaper than wire transfers, which usually cost $15 to $50. Check with your bank to see if they charge a fee for RTP.
Can I use RTP to send money internationally?
No. RTP only works for transfers between U.S. bank accounts. International payments still require wire transfers or specialized money transfer services. Some banks are exploring international real-time payment networks, but they are not yet widely available.
What happens if I send money to the wrong account by mistake?
Unlike wire transfers, RTP payments can be reversed. Contact your bank immediately and explain the mistake. They can usually recall the payment or reverse it before the recipient withdraws the money, though this depends on how quickly you act.
Is RTP safer than ACH or wire transfer?
RTP is as safe as ACH — both use encryption and verification to prevent fraud. Wire transfers are not inherently safer, though they do involve manual review by a bank employee. The main difference is that RTP and ACH can be reversed if something goes wrong, while wire transfers cannot.
Why does my bank not offer RTP yet?
Smaller banks and credit unions are still joining the RTP network. It takes time and investment for a bank to connect to the system. If your bank does not offer RTP, you can still use ACH transfers, which are free and take one to three business days.