FedNow / instant payments.

In plain English

FedNow is a payment rail the Federal Reserve launched to let banks move money between accounts in real time, around the clock, with the funds available to the recipient within seconds. It sits alongside a private-sector instant rail called RTP, run by The Clearing House; both do the same job of settling payments instantly rather than in the hours or days that older systems like ACH take. For consumers, instant payments mean a transfer or paycheck can land immediately, though whether you get access depends on your bank choosing to offer it.

01Why it matters

Instant payments are replacing the multi-day wait of older transfers, so understanding them explains why some money now moves in seconds and helps you spot when it should.

02The math, step by step

Using an instant-payment service built on FedNow or RTP, you send a friend 200 dollars on a Sunday night and it lands in their account in seconds, rather than waiting until the next business day like an ACH transfer.

03What this is NOT

04Receipts

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