One of the most powerful innovations in the payments space is Request for Payment (RfP) within the Real-Time Payments (RTP) network, soon coming to FedNow.
RfP is transforming the way businesses request and receive payments, offering a seamless, immediate, and secure alternative to traditional invoicing and payment collection methods.
What Is RTP Request for Payment (RfP)?
Request for Payment (RfP) is a real-time invoicing mechanism that allows businesses, billers, and service providers to send a payment request to a payer through the Real-Time Payments (RTP) network, which is operated by The Clearing House. Unlike traditional invoices, which rely on email, paper, or ACH billing processes, RTP RfP enables a seamless digital experience that allows immediate payments, reducing delays and improving cash flow.
Instead of waiting for a customer to initiate a payment manually, businesses can send an electronic RfP, which the payer can approve and pay instantly through their banking app.
How Does RTP RfP Work?
The RTP Request for Payment process consists of the following steps:
A Business or Biller Initiates the RfP
- A company or biller generates a Request for Payment through the RTP network, specifying the amount due.
The Payer Receives a Notification
- The request is sent directly to the payer’s financial institution, and they receive a Request for Payment notification through email and mobile app.
The Payer Reviews and Approves the Payment
- The payer has the option to either pay immediately or decline the request.
Funds Settle Instantly
- Once the payer authorizes the payment, the funds are transferred in real time via the RTP network, providing instant settlement and confirmation.
Key Features of RTP Request for Payment
- Payments are processed instantly, eliminating the delays associated with traditional invoicing and ACH transfers.
- Once an RfP is fulfilled, the completed payment is irrevocable. No chargebacks or disputes! Eliminating the most significant problem with standard ACH Debits.
- Built-in authentication and fraud prevention features make RfP a secure alternative to email-based invoices and manual payment collection like mailing checks.
- Businesses receive funds instantly, reducing payment delays and improving liquidity.
- Customers can review and approve payments conveniently while maintaining complete control of their payments.
- Since transactions occur in real time, businesses can streamline reconciliation processes and reduce accounting complexities.
- Eliminating paper invoices, follow-ups, and manual reconciliation can significantly cut costs for businesses.
Use Cases for RTP RfP
RTP RfP is highly versatile and can be applied across multiple industries and payment scenarios:
- Bill Payments - Utilities, telecom providers, and subscription services can request customer payments without requiring manual invoicing.
- E-commerce and Retail - Merchants can send payment requests for pending balances or installment payments.
- Healthcare Payments - Patients can receive instant billing requests for medical services with an easy, real-time payment option.
- B2B Transactions - Suppliers can send invoices via RfP, allowing corporate buyers to review and approve payments efficiently.
- Gig Economy and Payroll - Freelancers and contract workers can receive real-time payment requests for completed work.
How RTP RfP Differs from Traditional Payment Requests
The Future of RTP RfP and Instant Payments
As real-time payments continue to gain traction, Request for Payment (RfP) is becoming a game-changer for businesses and consumers. The demand for instant, secure, and streamlined payment solutions is increasing, and financial institutions are investing in RTP infrastructure to support more seamless transactions.
ACHNow: Enabling Instant Payments Beyond RTP
While RTP’s Request for Payment (RfP) drives real-time payment adoption, Sila’s ACHNow offers RTP credits and RfP combined with FedNow’s credits.
ACHNow is Sila’s proprietary instant ACH settlement solution, designed to intelligently route transactions through the fastest and most cost-effective payment rails available - including RTP, FedNow, ACH, Same-Day ACH, and soon Wires and Push to Card.
Here’s how ACHNow enhances instant payments:
Smart Payment Routing
- ACHNow dynamically determines the best available rail (RTP, FedNow, or ACH) for instant processing, ensuring faster settlements even for banks that don’t yet support RTP.
Instant ACH Settlement
- Unlike standard ACH transfers that take 2–3 business days, ACHNow settles transactions in real time, depending on availability, reducing cash flow delays for businesses and consumers.
Lower Costs vs. Card Payments
- With ACHNow, businesses can offer faster, more affordable transactions compared to traditional card processing, making it an attractive alternative for high-volume payments.
Reliable Payment Failover
- If RTP or FedNow isn’t available for a transaction, ACHNow automatically falls back to Same-Day ACH, regular ACH, and soon Push to Card, ensuring funds move as quickly as possible.
ACHNow creates a seamless instant payment ecosystem, allowing businesses to initiate real-time requests and settle payments with maximum flexibility. Whether leveraging RTP for real-time clearing or ACHNow for broader bank coverage, businesses can ensure faster payments, improved cash flow, and a better customer experience.
RTP’s Request for Payment transforms how businesses send, receive, and process payments.
By offering real-time, secure, and automated invoicing, RfP is eliminating inefficiencies in traditional billing processes.
Companies embracing RTP and FedNow today are leading the future of instant payments, improving cash flow and customer satisfaction while reducing operational costs.