Routing Numbers and Real-Time Payments: FedNow and RTP
The US now has two real-time payment networks — FedNow and RTP. Both still use routing numbers to identify participating banks. Here's how it works.
The United States now has two real-time payment networks running alongside the traditional ACH system: the Federal Reserve's FedNow (launched 2023) and The Clearing House's RTP (Real-Time Payments, launched 2017). Both networks still use ABA routing numbers to identify participating banks — but they work very differently from ACH.
What Makes Real-Time Payments Different
Traditional ACH batches transactions and settles them in windows throughout the business day — typically 1–3 business days for standard ACH. Real-time payment networks settle each transaction individually, instantaneously, and irrevocably, 24 hours a day, seven days a week, including holidays. Once a real-time payment is sent, it cannot be reversed — it behaves more like a wire transfer than an ACH credit.
FedNow
FedNow is the Federal Reserve's instant payment service, launched in July 2023. Banks and credit unions that enroll in FedNow can send and receive instant payments up to $500,000 (with the option to set lower limits). Participating institutions are identified by their ABA routing numbers — the same nine-digit codes used for ACH and Fedwire.
For consumers, FedNow payments appear in their account within seconds of being sent. The service is available 24/7/365, unlike ACH which has processing windows and settlement delays. Not all banks participate yet — enrollment is growing but not universal as of 2024.
RTP (Real-Time Payments)
The Clearing House's RTP network launched in 2017 and was the first real-time payment network in the US. Like FedNow, RTP uses ABA routing numbers to identify participants. RTP has a higher per-transaction limit ($1 million) and has had several years longer to build bank adoption.
RTP and FedNow are separate networks — a bank must enroll in each independently. There's no direct interoperability between them yet, though industry discussions about connecting the two networks are ongoing.
How Routing Numbers Work in Real-Time Payments
Both FedNow and RTP use ABA routing numbers to route transactions to the correct receiving institution — the same way Fedwire uses routing numbers for wire transfers. However, not every routing number is enrolled in FedNow or RTP. A bank may have a valid ACH routing number but not yet participate in real-time payments.
Our routing number lookup tool shows the basic transaction types supported by each routing number based on Fed directory data. To confirm whether a specific routing number is enrolled in FedNow or RTP, check with the institution directly.
Will Real-Time Payments Replace ACH?
Not anytime soon. ACH processes approximately 30 billion transactions per year — payroll, bill pay, government benefits — representing a deeply embedded infrastructure. Real-time payments are a complement to ACH, not a replacement. ACH remains cheaper for batch processing and lower-value transactions, while real-time networks excel for time-sensitive transfers.
For the foreseeable future, ABA routing numbers will continue to serve all three systems simultaneously: ACH for batch payments, Fedwire/RTP/FedNow for real-time and large-value payments. Browse our guides section and bank directory to learn more.