Real-time payment networks allow money to move instantly between bank accounts, 24/7/365. While they don’t replace credit cards, they are becoming an important complement to traditional payment methods.

Here’s what real-time payments are, how they work, and what merchants should know about using them.

What Are Real-Time Payments?

Real-time payments are bank-to-bank electronic payments that:

• Settle instantly
• Are available 24/7 (including weekends and holidays)
• Provide immediate confirmation
• Move funds directly between accounts

In the U.S., real-time payments are supported by dedicated payment rails designed for speed—not batch processing.

Unlike ACH, there is no waiting period. Unlike cards, there is no authorization hold or delayed settlement.

How Real-Time Payments Work (Step-by-Step)

A real-time payment transaction typically works like this:

1. A payer initiates a payment
2. The bank verifies funds availability
3. The payment is sent through the RTP network
4. The recipient’s bank receives the funds instantly
5. Both parties receive confirmation in seconds

The entire process happens in near real time—usually within seconds.

How Real-Time Payments Differ from ACH

ACH payments are familiar—but slow.

ACH payments:

• Process in batches
• Settle in 1–3 business days
• Often don’t provide immediate confirmation

Real-time payments:

• Process individually
• Settle instantly
• Provide immediate certainty of funds

For merchants, this means improved cash flow and fewer unknowns.

How Real-Time Payments Compare to Credit Card Processing

Real-time payments and card payments serve different purposes.

Credit Cards:

• Enable consumer spending
• Offer rewards and fraud protection
• Support chargebacks and disputes
• Settle in 1–3 business days

Real-Time Payments:

• Move funds instantly
• Are typically irreversible
• Have lower risk of chargebacks
• Do not offer consumer credit or rewards

Cards excel at point-of-sale and consumer convenience. RTP excels at speed and certainty.

Benefits of Real-Time Payments for Merchants

Real-time payments can help merchants by:

• Improving cash flow
• Reducing settlement delays
• Providing instant payment confirmation
• Supporting urgent or high-value transactions
• Reducing reliance on checks

For certain use cases, faster access to funds can be a major operational advantage.

Common Merchant Use Cases for Real-Time Payments

Real-time payments are especially useful for:

• B2B payments
• Invoice payments
• Supplier and contractor payouts
• Emergency or time-sensitive transactions
• Refunds and disbursements

They are not designed to replace everyday consumer card purchases—but to fill gaps where speed matters most.

Limitations Merchants Should Understand

Real-time payments are powerful—but not perfect.

Limitations include:

• Transaction amount limits
• Limited consumer awareness
• Irreversibility
• Bank participation requirements
• Fewer built-in dispute mechanisms

Because of this, RTP should be used thoughtfully—not universally.

What This Means for Merchant Services Agents

For agents, real-time payments represent:

• A new education opportunity
• A way to solve cash-flow challenges
• A value-add beyond pricing

Agents who understand where RTP fits can help merchants choose the right tool for the right transaction.

How Beacon Payments Views Real-Time Payments

At Beacon Payments, we see real-time payments as part of a multi-rail payment future.

We believe:

• No single payment method solves every problem
• Speed, security, and reliability must balance
• Merchants benefit from choice—not confusion

Real-time payments enhance payment strategies—but don’t replace proven card processing.

Final Thoughts: Real-Time Payments Are an Addition, Not a Replacement

Real-time payments are changing how money moves—but not eliminating existing systems.

For merchants, they offer:

• Faster access to funds
• Improved operational flexibility
• New ways to pay and get paid

For agents, they offer:

• A modern talking point
• A way to add value
• Another reason to engage merchants in meaningful conversations

The future of payments isn’t one rail—it’s many, working together.