Instant Pay Explained: RTP and FedNow Benefits for Employees

Below are answers to common questions about how Eddy uses instant payments and same-day ACH to ensure everyone gets paid on time. These FAQs explain what happens if a bank can’t accept instant payments, how retries work, and what payment options are available so you know exactly what to expect on payday.

1. What Are Real-Time Payments?

Real-time payments (RTP) refer to electronic payment systems that transfer money between bank accounts instantly. Unlike traditional payment methods that can take hours or days to process, real-time payments settle within seconds, giving employees immediate access to their funds.

In the United States, there are currently two primary instant payment networks:

The RTP® Network (The Clearing House)—Launched in 2017 by The Clearing House, the RTP Network was the first instant payment system in the U.S. It currently reaches approximately 70% of all U.S. demand deposit accounts and supports transactions up to $10 million. The network is available to all federally insured U.S. depository institutions and processes payments in real-time with immediate settlement and confirmation.
FedNow® Service (Federal Reserve)—Launched in July 2023, FedNow is the Federal Reserve's instant payment service. It reaches approximately 30% of U.S. demand deposit accounts with a current transaction limit of $1 million.

Together, these networks reach over 73% of all U.S. demand deposit accounts, making instant payments accessible to the vast majority of American workers.

2. Why Are Eddy's Banking Partners Moving to Real-Time Payments?

Our banking partners are adopting RTP and FedNow to provide significant benefits for both employers and employees:

Immediate Access to Funds—Unlike traditional ACH payments that can take 1-3 business days to settle, instant payments are available within seconds. This means employees can access their pay immediately when processed, rather than waiting for standard banking processing times.
Enhanced Security and Reliability—Instant payments are irrevocable once sent, meaning they cannot be returned or reversed like ACH payments can be. This provides greater payment certainty and reduces processing risks.

3. Will all employees receive instant payments?

Not necessarily. Whether an employee receives instant payments depends on their bank's participation in the RTP or FedNow networks. If an employee's bank doesn't support instant payments, their pay will be processed through traditional ACH, which typically takes 1-2 business days. As more banks adopt these networks, instant payment availability will continue to expand.

If an instant payment can’t be delivered, Eddy will automatically retry the payment over same-day ACH. Same-day ACH transactions settle by 1:00 PM ET on payday, so there is no net delay in receiving funds. If you see a same-day ACH retry, it simply means your bank doesn’t yet support instant credits—contact your bank to learn how to enable RTP or FedNow.

Eddy will attempt an instant payment up to two times. If both attempts fail, we switch permanently to ACH for that bank account. Once ACH is in use, the employee will be paid with ACH.

4. Can Eddy tell in advance which employees won’t get instant payments?

Unfortunately, no. Instant-payment availability depends on both the sending and receiving banks communicating in real time. We only learn about a bank’s capabilities when payment is submitted.

5. Does this change when we debit funds from the employer’s account?

No. Employer debits still occur after payroll approval—usually within 60 minutes of approval—and post to your bank account between 12:00 PM and 11:30 PM ET on the approval date, regardless of whether employee payments go out via RTP, FedNow, or ACH.

6. Can we void or reverse an instant payment?

Instant payments can be canceled only until 7:00 PM ET the day before payday. After that, they cannot be reversed. By comparison, ACH payments can be canceled until 12:00 PM ET the day before payday, and a request to reverse can be made up to five business days after settlement.

7. Can I opt out of instant payments if I prefer traditional ACH?

There is no method to opt out of instant payments.

For additional technical information about instant payment networks, you can visit: