What You Should Know About Real Time Payments (RTP)

Mar 16, 2018

The US noncash payments system continues to rapidly evolve. The shift from paper-based noncash payments has two major benefits: these new payments are much faster and can more economically transfer the data electronically. Are you interested in Real Time Payments? This article will help you get a better idea of RTP.

The ACH and the Payments System

We live in a culture where people don’t like to wait. Companies in the payments field are working on developing instant payments so that payment processing won’t create headaches for people.

American bank-owned ACH The Clearing House (TCH) launched its real-time payments system (RTP) in 2017. TCH is owned by some of the largest banks in the world. ACH can be characterized as a banking association and payments company. It dates back to 1853.

The Clearing House Payments Company L.L.C. owns and is responsible for operating the core payments system infrastructure in the US. It’s currently focused on modernizing that infrastructure with a new, ubiquitous, real-time payment system.

The Automated Clearing House (ACH) Network is one of the world’s biggest payment systems. ACH is responsible for transferring money and data between banking institutions through batch processing. This means that the transactions received aren’t processed just right off the bat. They’re accumulated during the day and then processed simultaneously in one batch.

To make the change, TCH has partnered with MasterCard Vocalink payment infrastructure company. Vocalink has already worked on RTP systems in some other countries. These include the UK, Singapore, and Thailand. The aim is to cut the time taken to process payments from days to seconds.

According to Federal Reserve, the vast majority of consumers and businesses prefer instant or one-hour transaction clearance. In May 2015, the voting membership of the National Automated Clearing House Association (NACHA), which administrates the ACH Network, gave approval to an amendment to their Operating Rules to accelerate payment processing.

Real Time Payments (RTP)

Mobile technology and digital commerce have brought about the need for a safer and faster payments system in the US. Real Time Payments (RTP) represent a new real time system for all US financial institutions.

Real Time Payments (RTP) is described as similar to the Same Day ACH. There’re already real-time payment systems operating or being built in worldwide. The Same Day ACH rule is an important effort put in the modernization of the US payments system. It aims to make payments happen real time.

Because of same-day payment processing, financial institutions, merchants, and others should change and improve their infrastructure. Thanks to the ubiquitous same-day option, consumers, businesses, and governments get an opportunity to improve products, services, and business models.

With all this in mind, it’s critical to work only with reputable real time payment processing companies like eMerchantBroker.com to get approved for payment processing. If you’re interested in Real Time Payment Processing, just turn to EMB. EMB is voted the #1 high risk processor in the US and is also a respectable alternative online lender. EMB carries an A+ rating with the BBB and an A rating with Card Payment Options.

RTP operates in the background. It supports a financial institution’s customer-facing systems for bill payment, cash management, P2P, and emergency disbursements. Companies can use messages like Request for Payment, Payment Confirmation, Request for Additional Information, and Remittance Detail in different ways. As a result, they’ll be able to develop innovative and frictionless customer-facing methods.

According to one of the payment specialists in the field, instant doesn’t mean same day. Instant means 24 hours, seven days a week. So, one minute after you pay something to somebody, this person gets his/her funds. ACH is still a batch-based system and is accelerating its funds.

Ian Stewart, CEO of BNY Mellon Treasury Services, notes that RTP represents one of the most important payment transformation efforts in the US industry. Stewart thinks bringing online a truly real-time, two-way, 24/7 payment and messaging system will result in new scenarios and new markets in ways people haven’t even expected.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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