Real-time payment

Real-time payments (RTP) are instant transfers where initiation, clearance, and settlement happen within seconds. Once approved, the recipient gains immediate access to the funds, and the transaction cannot be reversed.

Real-time payment systems support only push payments. This means customers can send money from their bank account to a recipient, but the recipient cannot request or pull funds.

A customer starts a transfer from their bank account and may include extra details, such as booking information. The issuing bank checks the transaction and authorizes it if valid. The transaction is then sent to a real-time payments platform, which performs another check. If the transaction is approved, it is settled at once and the funds appear in the recipient’s account. The payer receives a confirmation message.

Real-time payments offer speed and convenience, but their final and irreversible nature creates risk. These features attract fraudsters, especially in cases of authorized push payment fraud. Criminals may use social engineering or account takeovers to impersonate legitimate payees. Because real-time transactions cannot be reversed, recovering stolen funds is often difficult. Fraudsters also exploit instant settlement to move money quickly across different channels.