Real-time payments are here, and banks, consumers and commercial customers all can benefit from transactions settling instantly. The Clearing House Real Time Payment network (RTP) started processing in 2017, and the Federal Reserve’s FedNow Service is expected to go live in 2023. RTP uses a shared pre-funded joint account to settle transactions, while FedNow will be linked to a bank’s master account at the Federal Reserve.
Zelle began as a P2P service that gave immediate credit to customers but settles transactions later using the Automated Clearing House, and in some cases, settlement occurs via RTP when both banks are capable. Zelle appears to be an instant payment from the user perspective — and it actually is — when it uses RTP to settle transactions in real time.
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Related Training & Events
- Lessons Learned: Banks’ Journeys to FedNow Service Readiness
Recorded Webinar |September 13, 2023
Join the fifth and final installment of this five-part webinar series to learn from two FedNow Service banks and a Federal Reserve leader as they discuss their journeys and experiences navigating instant payments readiness and adoption.
- See a Live FedNow Service Demonstration and What’s Next with Onboarding
Recorded Webinar |May 10, 2023
In part four of this five-part FedNow webinar series, join Dan Baum, Senior Vice President of FedNow Product Development, for a demo of the service.
- Exploring Benefits and Use Cases with the FedNow Service
Recorded Webinar |April 12, 2023
- Preparing for Always-On Operations with the FedNow Service
Recorded Webinar |March 16, 2023
This session will cover important operational topics that are top of mind for banks, including reconcilement, accounting changes, reporting, and liquidity management.
ABA Resources
Industry Resources
- Information about Zelle for banks
- Faster Payments Council
- The Clearing House’s Real-Time Payments Network
- FedNow Service
- RTP FAQs
- FedNow Service Readiness Guide
- Faster Payments Resources | Faster Payments Council
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Policy Analysis & Advocacy Efforts
Testimony
"Digital Assets and the Future of Finance: Examining the Benefits and Risks of a U.S. Central Bank Digital Currency."May 26, 2022
Comment Letter
ABA Comments on Federal Reserve Discussion Paper Money and Payments: The US Dollar in the Age of Digital TransformationMay 20, 2022
Comment Letter
ABA Letter to Federal Reserve re: Proposed Amendments to Regulation JSeptember 1, 2021
Comment Letter
ABA Letter to Board re: Payment System RiskAugust 2, 2021
