FedNow vs RTP

United States

Same job: Send an instant, irrevocable credit-push payment between US banks.

The decision: Both settle in seconds; the split is the settlement model. FedNow settles directly across each bank's Federal Reserve master account, while RTP settles by moving positions inside a prefunded joint account at the FRBNY (so RTP participants carry the liquidity burden of keeping that position funded).

The diff

Pulled from each rail’s audited flow. Highlighted rows are where the two differ.

Attribute	FedNow real-time B2B payment	RTP real-time B2B payment (The Clearing House)
Jurisdiction	US	US
Primary railsdiffers	FedNow	RTP
Rails on the legsdiffers	Bank channel · FedNow · Deposit account	Bank channel · RTP · Deposit account
Currency	USD	USD
Number of parties	6	6
Settlement venuediffers	Fed master accounts	RTP prefunded joint account (at FRBNY)
Settlement timing	Real-time · Seconds	Real-time · Seconds
Message standard	ISO 20022 · ISO 20022 (pacs.002)	ISO 20022 · ISO 20022 (pacs.002)

Both flows, side by side

FedNow real-time B2B payment

FedNow · USD · US

The sending business instructs its bank to send a FedNow payment. The FedNow Service validates the message and forwards it to the receiving bank, which accepts; FedNow then settles instantly across the banks' Federal Reserve master accounts and the receiving bank makes funds available within seconds.

How it moves, step by step

1
messageSending business Sender bank
Payment instruction
Bank channel
2
moneySender bank FedNow Service
Credit push
FedNow · Real-time
3
messageFedNow Service Receiver bank
Forward payment for acceptance
FedNow · Seconds
4
messageReceiver bank FedNow Service
Accept / reject response
FedNow · Seconds
5
moneyFedNow Service Fed master accounts
Settle central bank money
FedNow · Real-time
6
moneyFed master accounts Receiver bank
Receiver master account credited
FedNow · Real-time
7
moneyReceiver bank Receiving business
Make funds available
Deposit account · Seconds

Grounded in operator & regulator sources

RTP real-time B2B payment (The Clearing House)

RTP · USD · US

The sending business instructs its bank to send an RTP payment. The RTP network validates the message and forwards it to the receiving bank, which must accept within seconds; RTP then settles instantly by transferring positions within the participants' prefunded joint account at the Federal Reserve Bank of New York, and the receiving bank makes funds available to the receiving business.

How it moves, step by step

1
messageSending business Sender bank
Payment instruction
Bank channel
2
moneySender bank RTP network (The Clearing House)
Credit push
RTP · Real-time
3
messageRTP network (The Clearing House) Receiver bank
Forward payment for acceptance
RTP · Seconds
4
messageReceiver bank RTP network (The Clearing House)
Accept / reject response
RTP · Seconds
5
moneyRTP network (The Clearing House) RTP prefunded joint account (at FRBNY)
Position transfer in joint account
RTP · Real-time
6
moneyRTP prefunded joint account (at FRBNY) Receiver bank
Receiver bank position credited
RTP · Real-time
7
moneyReceiver bank Receiving business
Make funds available
Deposit account · Seconds

Grounded in operator & regulator sources

See each in the studio

FedNow real-time B2B paymentAudited template · loads instantly RTP real-time B2B payment (The Clearing House)Audited template · loads instantly

All rail comparisons

Educational, plain-English explainers. Not legal, compliance, tax, or financial advice. These cover fundamentals, not current fees, limits, or rates (which change). Rails and parties vary by program and country, so verify specifics against primary sources. Last reviewed June 2026.