Real-Time Payments USA : Rails, Fees, and the Lightning Network

Key Facts for USA

• Primary real-time rails: The RTP® network, FedNow® Service.
• Typical settlement times: Funds are available within seconds.
• Common limits: The RTP network has a per-transaction limit of $10 million; daily aggregate limits vary by institution.

What “real-time payments” means in USA

In the United States, real-time payments are electronic fund transfers providing near-instant money availability, operating 24/7 year-round. Unlike traditional bank transfers, these payments are final and irrevocable, offering immediate confirmation to both sender and recipient. The system is available through two primary networks: The Clearing House’s RTP® network and the Federal Reserve’s FedNow® Service. These networks serve a wide range of use cases from B2B to P2P, with the RTP network alone reaching over 70% of U.S. demand deposit accounts. No formal statutory definition exists; governance is managed through network operating rules.

The U.S. system has two main operators: The Clearing House (TCH), a private banking association, runs the RTP® network, while the Federal Reserve operates the FedNow® Service. TCH is a highly regulated entity, designated a systemically important financial market utility. The sources do not identify any subsidiary clearing houses involved in these real-time payment systems. Both networks are built on the ISO 20022 messaging standard, which allows for richer data to be attached to transactions, a key feature for modern commerce.

The U.S. was slower to adopt real-time payments compared to global peers, but its recent growth has been explosive.

Payment Rail Overview

The RTP® Network

Launched by The Clearing House in 2017, the RTP® network was the first new core payments infrastructure in the U.S. in over 40 years. It functions as a 24/7 credit-push system where payers instruct their bank to send funds, which are processed individually and settled irrevocably within seconds. This system provides immediate payment confirmation and fund availability to the recipient.

• 24/7 Availability: The network operates around the clock, every day of the year, including weekends and holidays.
• Instant Settlement: Funds are transferred and made available to the recipient almost instantaneously.
• Payment Finality: All transactions are final and irrevocable once sent, which eliminates the risk of reversals from insufficient funds.
• Rich Data Messaging: Built on the ISO 20022 standard, it allows for extensive information, like invoice details, to travel with the payment.
• High Transaction Limit: Individual payments can be as large as $10 million.

Pros:

• Instant settlement offers precise cash flow control.
• Payment finality gives receivers certainty.
• Rich data messaging simplifies business reconciliation.

Cons:

• Payments are irreversible, making it difficult to correct errors.
• Only supports credit-push payments, not debit-pulls.
• Bank participation, while growing, is not yet universal.

FedNow® Service

Introduced by the Federal Reserve in 2023, the FedNow® Service is the public-sector counterpart to the RTP network. It provides a nationwide infrastructure for instant payments, operating continuously to process transactions in real time. Like RTP, it ensures funds are available immediately and payments are final, offering a resilient second option for the nation's financial institutions.

• Instant Settlement: Payments clear and settle in seconds, making funds immediately accessible to the recipient.
• Continuous Operation: The service runs 24/7/365, processing payments outside of traditional banking hours.
• Payment Finality: Transactions are irrevocable, providing certainty to both the sender and receiver that the payment is complete.
• Immediate Confirmation: Both parties receive instant notification once the transfer is successful.
• Public Infrastructure: Operated by the Federal Reserve, it offers a government-backed alternative for real-time payments.

Pros:

• Promotes competition and resilience in the instant payments market.
• Offers immediate fund availability and payment certainty.
• Strengthens business operations through improved receivables.

Cons:

• As a newer network, its adoption and reach are still expanding.
• Fewer public statistics are available on its performance compared to the RTP network.

Limits, Fees, and SLAs

• Limits: The RTP network’s per-transaction limit is $10 million. Daily caps are set by individual financial institutions, with no distinct corporate tiers specified.
• Fee Structures: The network charges a single price to all participating institutions. Banks are free to mark up this fee for customers; no specific PSP pricing is provided.
• R2P Fees: The network fee is 4.5 cents per transaction. End-user costs vary by bank, but typically range from $0.25 to $1 per payment.
• Operating Hours: Real-time payment networks operate 24/7/365, including all weekends and holidays, with no processing cut-off times.
• Failures & Returns: Payments are final and irrevocable. While transactions cannot be reversed, a messaging system exists to request a return of funds from the recipient.

Compliance and Risk

KYC/KYB & AML

Financial institutions in real-time payment networks must follow strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. Enforced by agencies like FinCEN, these rules are a foundational part of the U.S. financial regulatory structure to prevent illicit activities.

Fraud Controls

As real-time payments are irrevocable, regulatory focus is shifting to preventing push payment scams. This involves increased government scrutiny and the adoption of advanced transaction monitoring and screening tools to identify and block fraudulent activity before funds are lost.

Recordkeeping & Audits

Network operators face regular audits, and participating firms must keep meticulous transaction records. For digital assets, IRS rules are specific, treating them as property and requiring detailed documentation of every transaction for accurate tax reporting and compliance purposes.

Lightning Network Integration as a Solution

The Lightning Network is a second-layer protocol on Bitcoin for fast, low-cost transactions through off-chain payment channels. While domestic RTP rails offer instant payments within a country, the Lightning Network complements them by providing a global infrastructure for similar real-time performance. It extends the instant payment experience across borders, connecting economies where local systems are not interoperable or available.

Both systems offer near-instant settlement. However, the Lightning Network’s transaction fees are typically fractions of a cent, substantially lower than the costs associated with domestic RTP rails. While RTP networks have deep penetration within a single country, like the RTP® network in the U.S., the Lightning Network’s reach is inherently global. It connects users worldwide, independent of traditional banking infrastructure, using only an internet connection.

1. Cross-Border Complexity: It bypasses the intermediaries, high fees, and settlement delays common in international bank transfers.
2. Prohibitive Transaction Costs: Its minimal fees make micropayments for content streaming, gaming, and tipping economically practical.
3. Network Scalability: It relieves congestion on the main Bitcoin blockchain, allowing for a transaction volume comparable to major card networks.

Exploring its architecture reveals a potential blueprint for a truly global and open financial network.

B2B Enterprise Use Cases

• Supplier Payments – Businesses pay invoices instantly, allowing suppliers to receive funds 24/7 upon approval. Business value: Improves supplier relationships and creates opportunities for dynamic discounting.
• Merchant Settlement – Retailers and e-commerce sites receive customer funds immediately, bypassing multi-day card network settlement cycles. Business value: Radically improves daily working capital and reduces reliance on credit lines.
• Treasury Optimization – Corporate treasurers execute just-in-time funding to manage liquidity across accounts with precision. Business value: Maximizes investment returns on cash holdings and minimizes borrowing costs.
• Payroll – Companies can issue instant off-cycle payments for final wages, bonuses, or gig worker compensation. Business value: Increases worker satisfaction and provides significant payroll processing flexibility.
• Insurance Claim Payouts – Insurers send approved claim funds directly to a policyholder’s account for immediate access during emergencies. Business value: Builds customer loyalty through a responsive and supportive claims experience.

Cross-Border Transactions and Remittances to USA

Cross-border payments are notoriously slow and expensive. The core problem is connecting disparate national payment systems—a process called “rail bridging”—which is often inefficient. Each transaction must also navigate complex foreign exchange (FX) paths, adding costs and delays. In the U.S., this is compounded by a fragmented regulatory landscape. Varying rules for anti-money laundering and consumer protection create significant operational friction for payment providers, making true real-time international payments a persistent challenge for global commerce.

• USA to Mexico: As the world’s largest bilateral remittance corridor, these flows are primarily personal funds sent by migrants to family. Transactions are dominated by money service businesses and, increasingly, digital platforms.
• USA to India: A major corridor for both family remittances and B2B payments, transactions often face regulatory friction between the two countries. This route sees a mix of bank transfers and newer digital payment solutions.
• USA to the Philippines: This is a vital channel for remittances, which constitute a significant part of the Philippine economy. Funds are sent through a mix of traditional cash pickup services and modern digital apps.

The Lightning Network offers a global settlement layer to bypass these issues. By bridging domestic payment rails and cutting out traditional intermediaries, it makes instant, cross-border transactions possible for a fraction of the cost of legacy financial systems.

How Lightspark Makes Integration Easy

Lightspark helps fintechs, digital banks, wallets, and exchanges connect to the Lightning Network for instant, global payments. Our platform abstracts away the operational burdens, handling everything from liquidity provisioning and intelligent routing to integrated compliance checks. With robust developer tooling and simple APIs, you can implement a solution that offers sub-second settlement globally, opening new possibilities for cross-border commerce and micropayments. Focus on building your business while we manage the payment infrastructure. Talk to our team to get started.

Sources and Further Reading

• https://www.congress.gov/crs-product/R43217: CRS report on international remittances.
• https://www.forbes.com/sites/tomgroenfeldt/2025/07/17/real-time-payments-are-soaring-in-the-us/: US real-time payments growth detailed.
• https://home.treasury.gov/news/press-releases/jy2722: Treasury report on illicit finance.
• https://www.jpmorgan.com/insights/payments/payables/instant-payments-understanding-rtp-and-fednow-service: Explains RTP and FedNow services.
• https://www.lightspark.com/contact: Contact the Lightspark sales team.
• https://www.lightspark.com/knowledge/is-crypto-legal-in-usa: Overview of US crypto legality.
• https://www.lightspark.com/news/insights/what-are-lightning-payments: Explainer on Lightning Network payments.
• https://www.moderntreasury.com/learn/what-is-rtp: Explainer on the RTP network.
• https://www.theclearinghouse.org/payment-systems/rtp: Overview of the RTP network.
• https://www.theclearinghouse.org/payment-systems/rtp/institution: RTP network for financial institutions.