The RTP network is operated by The Clearing House and launched in 2017. FedNow is operated by the Federal Reserve and launched in 2023. Both are credit push only, which means funds cannot be pulled from an account by the receiver.
Instant settlement compresses the fraud response window from hours to effectively zero. Controls that relied on a batch window to catch an anomaly before release do not exist on these rails, so verification has to move upstream into the moment the account details are established.
Common questions
What is the difference between RTP and FedNow?
They are separate networks with the same shape: RTP is operated by The Clearing House, FedNow by the Federal Reserve. Both settle instantly and both are credit push only.
Are instant payments reversible?
No. Both networks settle with finality, so a returned payment requires the receiver to send funds back voluntarily.
Primary sources
Citing this entry? Cite as Coffr, LLC and link to https://getcoffr.com/glossary/rtp-and-fednow.