Choose the right payment rail
Decide which payment rail best suits your business needs.
Each payment rail comes with its distinct specifications, prerequisites, and constraints. Selecting the right payment method will depend on your specific use case and desired payment process.
Considerations
- Cost The per transaction fees associated with using each payment rail, which can vary by financial institution and specific use.
- Reversibility: Indicates if a payment can be reversed after initiation.
- Settlement Time: How long it takes for funds to be transferred between parties.
- Transaction Limits: The general indication of how much money can be moved per transaction.
The table below outlines a few key features that differentiate each payment rail.
| Payment Rail | Direction | Settlement Time | Reversible? | Transaction Limits | Typical Use |
|---|---|---|---|---|---|
| ACH | Credit & Debit | 1-2 Business Days | Yes | $1,000,000 | Payroll / Bill Collection |
| Check | Credit | 3-7 Days | Yes (stop check) | No Limit | Business / Payroll |
| FedNow | Credit & Debit | Instant | No | $500,000 | Instant Payments |
| RFP | Debit | Instant | No | $100,000 | Instant Payments |
| RTP | Credit | Instant | No | $1,000,000 | Instant Payments |
| Wire | Credit | Within 10 minutes to a few hours | No | No Limit | Urgent, Large Transactions |
Updated 6 months ago