Real-Time Payments

RTPACTIVE

Operator: The Clearing House (TCH)

Overseer: Board of Governors of the Federal Reserve System (as a designated FMU)

Legal basis: Designated as a systemically important Financial Market Utility (FMU) under Dodd-Frank Title VIII

Launched: Nov 13, 2017

~800 participants (including send and receive)

Participants

Jan 1, 2025 · The Clearing House

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Executive Summary

The RTP network is the first modern instant payment system in the United States, launched by The Clearing House in November 2017. Operated by the same private-sector consortium that runs CHIPS, RTP provides 24/7/365 real-time payment capabilities with immediate finality. It settles in commercial bank money through a joint account at the Federal Reserve pre-funded by participants. RTP reached its first trillion dollars in cumulative value in 2023.

How It Works

Settlement Model

Prefunded settlement in commercial bank money (joint account at Federal Reserve)

Message Standard

ISO 20022 (native from launch)

Max Transaction

$10,000,000

Clearing Mechanism

Direct settlement via prefunded positions — no netting. Each transaction is settled individually.

Settlement Cycle

Continuous 24/7/365. Settlement is immediate using prefunded balances. Participants must maintain sufficient prefunding in the joint account.

Message Flow

The sending participant submits a credit transfer to the RTP network. TCH validates the message and checks the sender's prefunded position. The sender's prefunded balance is debited and the receiver's balance is credited immediately. The receiving participant is notified in real time. The end-to-end process completes in seconds. Request for Payment (RFP) enables payee-initiated flows.

Typical Use Cases

Business payments, insurance payouts, gig economy payments, bill payments, account funding, request-for-payment initiated flows

Key Data

Participants

~800 participants (including send and receive)

As of Jan 1, 2025 · The Clearing House

Participants & Access

Membership Requirements

Open to federally insured depository institutions. Participants must meet TCH eligibility criteria, execute participation agreements, and maintain prefunded positions. Third-party service provider access available.

Governance & Risk

Governance Model

Owned and operated by The Clearing House, which is owned by 22 major US banks. Governed by RTP Operating Rules and Participation Rules. Subject to Federal Reserve oversight as a designated FMU.

Concentration Risk

Moderate. Settlement risk mitigated by prefunding requirement. Operational concentration on TCH infrastructure. Designated as systemically important FMU.

Resilience & Business Continuity

TCH maintains redundant processing infrastructure. Prefunding model eliminates settlement failure risk. 24/7 operational monitoring.

Dispute Resolution

RTP Operating Rules govern inter-participant disputes. No chargeback mechanism — payment is final. Request for Return of Funds available but not guaranteed. Disputes handled bilaterally.

Pricing

RTP pricing includes per-transaction fees charged to the sending participant. Pricing is transparent and published.

Transaction fee: $0.045 per credit transfer (send fee)

Source: The Clearing House

Connectivity

same operator

CHIPS

Both operated by The Clearing House — complementary large-value (CHIPS) and instant (RTP) services

Peer Comparison

RTP competes directly with FedNow in the US. RTP launched first (2017 vs 2023) and has more established volumes, but FedNow's Federal Reserve backing and lower barriers to entry are driving rapid adoption. RTP settles in commercial bank money (prefunded), while FedNow settles in central bank money — a meaningful difference for risk management. Compared to SEPA Inst, RTP operates in a single country rather than across 36.

FedNow

FPS · United States · Federal Reserve

SEPA Inst

FPS · Eurozone · EPC / RT1 / TIPS

Compare in detail →

Regulatory Framework

541dMar 31, 2028

RTP: all participants must receive inbound One-Leg-Out (OLO) payments

The RTP Operating Rules edition effective 4 October 2026 adds a framework for One-Leg-Out (OLO) payments, the U.S. leg of payments to or from a payer or payee outside the United States. From 4 October 2026 to 30 March 2028 only participants that opt into the early-adopter period must comply with the OLO Framework; from 31 March 2028 all participants must receive inbound OLO payments and comply with it.

Timeline

Stored date Sep 30, 2026; precision not reviewed

Reference document updated: RTP System Operating Rules

Effective 09-30-2026. Recorded by ClearingPost on 2026-08-13.