The RTP network from The Clearing House is a real-time payments platform that all federally insured U.S. depository institutions are eligible to use for payments innovation. The Clearing House launched the RTP network in November 2017.

Since the inception of the RTP network, real-time payments have been a hot topic throughout the payments industry. Businesses are incorporating RTP payments into their payment mix to help with:

  • Expediting vendor payments for quick delivery of goods or services or for just-in-time payments
  • Payroll applications for late payroll or compensation for hours worked in advance of customary payday
  • Customer refunds and insurance claims

Businesses are speeding up commerce, satisfying clients and employee needs with faster payments and finding innovative ways to streamline their payments with RTP.

At a minimum, RTP delivers payments in seconds. But it’s far more than that. It incorporates interaction and collaboration between payer and receiver through conversational and data-rich message types.

Enhanced Messaging

RTP is on its way to helping transform U.S. payments, due to its speed, finality of payment and enhanced messaging capabilities.

Banks and The Clearing House continue to invest in RTP infrastructure, and the momentum continues to grow. As of the end of 2023, over 400+ financial institutions have joined the network, and more businesses are taking advantage of the platform.

Enhanced messaging capabilities can help provide value-added benefits to both the sender and receiver, including immediate confirmation of payment to both parties, inclusive remittance information, and the ability to exchange information between the parties about the payment.

A Request for Payment (RFP) message all can help contribute to a more efficient payment experience. RFP allows a creditor to send a message through the system to request a payment. The receiver of the RFP can then send one or more RTP credits in response, and the payment is automatically reconciled with the request.

The Current State of RTP

Growth in RTP adoption has been nothing short of explosive.

  • Currently 65% of all Demand Deposit Accounts (DDA) are able to receive RTP transactions. 
  • 400+ banks are currently enabled on the RTP network with more banks and financial institutions joining every month.1

What about FedNow?

PNC recognizes the value of the RTP system and the addition of RTP into clients’ payment portfolio. Clients and prospects do not need to wait for the development of FedNow, as RTP can help deliver faster payments, immediate payment acknowledgement and reconcilement, among other benefits, today. PNC will continue to expand capabilities utilizing the current RTP system and will also continue to monitor the progression of FedNow and provide periodic updates to clients.

Making the Transition to Real-Time Payments with Intelligent Routing and ePayments

PNC’s Intelligent Routing service can help automatically determine the most appropriate payment type based on the potential for fastest delivery.

Intelligent routing allows users to submit a payment file and PNC can determine if the payment should be sent via RTP, wire transfer, Same Day ACH, or traditional next-day ACH.

Users do not have to determine if the payment is eligible for RTP, manually keep track of cutoffs for different payment types, or create a separate format or file for each transaction type.

In addition, PNC’s business-to-consumer ePayments solutions enables users to make real time and traditional payments to consumers with either an email address or mobile phone number. Payment notifications are delivered via email or text to the payee, and the payee can choose their preferred payment method and provide the required payee account information. This can help reduce the need to maintain that information within an accounting or ERP system.

Ready To Help

PNC’s Treasury Management clients are currently able to take advantage of real-time payments and messaging through PINACLE®, API, Direct Transmission, or our Intelligent Routing and ePayments solutions. Talk to your Treasury Management Officer or visit pnc.com/treasury to find out how we can help to implement current capabilities. 

Source

1. https://www.theclearinghouse.org/payment-systems/rtp/