Product Corner: Facilitate Real-Time Payments RTP™ with VoPay

Posted on May 30, 2024

What are Real-Time Payments (RTP™)?

RTP from The Clearing House is an instant payment network that can be used to send money to US bank accounts. Transactions settle immediately, have high network limits, and utilize the ISO 20022 messaging protocol. RTPs instant payment capabilities, low transaction costs, and robust fraud measures have made many businesses sit up and take notice. 

RTP volume through the network has been steadily ramping up, hitting a new high of 74 million transactions in Q4 of 2023. The transactions are pouring in, and US businesses are thrilled to finally be able to tap into the value of instant transactions.

RTP™ Network Overview: Push-Only Transactions

The RTP Network is designed to facilitate push-only transactions that are sent from one bank account to another. The credit-only nature of the network offers the advantage of reduced payment risk since there are no reversals or returns to worry about. Payments are final and cannot be reversed, eliminating the possibility of failures due to NSF (non-sufficient funds).

RTP payments have been brought into the VoPay network of payment rails not only to expand our real-time payment offerings but to also complement our proactive risk and fraud reduction toolbox.

RTP™ Network Limits

The network currently has a hard transaction limit of $1 million. This limit is available through the VoPay platform, depending on your VoPay Account level and risk profile. Payments can be sent 365 days per year at any time of the day with no cut-off times or batch processing rules to adhere to.

Request For Payment On The RTP™ Network

Request For Payment (RFP) is a network messaging system that can be used to send electronic payment requests to customers, who can then use the underlying payment method to initiate a transaction.

Currently, the ACH Network and the RTP Network both offer Request For Payments. They allow for the exchange of data-rich messages between two parties, for example, invoice numbers, references, status codes, and other remittance information.

Now RFPs can be leveraged on the RTP payment method within VoPay’s B2B payment network. This opens up a whole new era of payments for businesses, giving them access to instant invoice settlement possibilities and a much higher degree of communication and transparency between them.

ISO 20022 

ISO 20022 is a messaging standard, meaning more detailed information can be sent with transactions. This is great for reconciliation purposes since payments can be easily matched to an order or object using transaction-specific identifiers in the transfer.

It also allows for 2-way messages between the sender and receiver, allowing detailed confirmation notes. Businesses can add a unique order ID number, an invoice code, or a personalized message to the payor thanking them for payment.

Real-Time Payments Use Cases

While the specific use cases for applying RTP payments are virtually unlimited, we’ve put together a few that we think are especially valuable:

  • Gig Workers - Give temporary workers instant access to earned wages
  • Loan Management - Instant loan payouts are great for customer satisfaction
  • Supply Chains - Send supplier funds in real-time to improve commerce
  • Payroll - Bulk payroll payments that arrive instantly for your employees
  • Marketplaces - Pay your platform members instantly

VoPay RTP™ Implementation

With VoPay, we currently offer 2 methods of accessing the RTP Network on our platform:

  1. Through our Payment Portal - Send RTP payments, view your transaction history, and manage everything from one centralized dashboard.
  2. Via our Payment API - Build out your own fully white-labelled solution and move funds through the RTP Network any way you see fit.

With either method of deployment, businesses get access to instant transactions facilitated through VoPay’s expansive payment network, alongside other US payment rails such as same-day ACH, Push to Card, and more.

Get Started with VoPay

To learn more about RTP payment integration, book a demo with our Fintech team to see how it can work for your business.

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