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The New Way to Get Paid: Request for Payments (RfP) Explained

Sri Iyer, Senior Product Director, Payments | Sai Kailash, Product Manager, Payments

April 9, 2025

min read

Introduction

Request for Payment (RfP)¹ creates a seamless connection between asking for funds and receiving them in real-time. This article unpacks RfP and highlights how it operates within modern payment networks. We’ll walk through a real-world transaction flow, key participants, business cases, benefits, implementation considerations and more.

What is Request for Payment (RfP)?

Request for Payment (RfP) is a service available within The Clearing House’s (TCH) Real-Time Payments (RTP®) as well as through FedNow® that enables customers from participating financial institutions to request funds in real-time, while leaving the payer in control. Unlike traditional payment methods, RfP operates on a "push payment model” rather than a "pull" mechanism, creating a more secure transaction environment.

For context, a "push payment model" means that the payer initiates the transaction, which involves explicitly authorizing it, actively sending money to the payee, essentially "pushing" the funds to the recipient's account, allowing for immediate access to the money, unlike a "pull payment model” where the payee requests a debit from the payer's account.

The RfP transaction flow explained – the sports betting scenario

Online sports betting presents an ideal use case for the Request for Payment (RfP) feature, where players need to fund their accounts quickly to place bets on upcoming events. Let's walk through how this transaction flow works in a real-world scenario.

Meet Alex², an enthusiastic sports fan who uses SportsBetX², a popular online betting platform. A basketball final is starting in 30 minutes, and Alex wants to place a $200 bet on his favorite team. However, he needs to add funds to his SportsBetX wallet first.

Before we get to the transaction flow, let’s breakdown the five key participants:

Alex – The sports better who authorizes the payment (RfP receiver)
SportsBetX – The betting platform requesting funds (RfP sender)
Main Street Bank² (SportsBetX’s Bank) – The financial institution initiating the RfP message (sending bank)
First Nations Bank² (Alex’s bank) – Alex's bank that processes his authorization and transfer funds (receiving bank)
Network – Either RTP® or FedNow®, which routes messages and funds between banks

Step-by-step RfP transaction flow

1. Request initiation: Alex logs into his SportsBetX app and selects "Add Funds." He enters $200 and selects his bank (First Nations Bank that supports RfP receive) as the funding source. SportsBetX initiates an RfP through its banking partner, Main Street Bank, that supports RfP Send. SportsBetX then notifies Alex to check his banking interface to approve the pending payment request.

2. RfP transmission: SportsBetX's banking partner, Main Street Bank, creates and sends a formal RfP message (ISO 20022 pain.013) through the RTP® or FedNow® network. This message contains:

Alex's account information at First Nations Bank
The requested amount ($200)
A description which includes:
- Who originated the RfP (SportsBetX - creditor)
- Amount requested
- Requested execution date - when Alex needs to pay by, and
- Alex's account information (debtor)
- A reference number for tracking

3. RfP delivery: The network routes this RfP to First Nations Bank (Alex’s bank). First Nations Bank receives the request and validates that:

Alex is their customer
The account is in good standing
The request appears legitimate, and the requested amount ($200) is under the limit set by the bank for RfP transactions

4. User notification and authorization: First Nations Bank sends Alex an email and push notification through their mobile banking app: "SportsBetX is requesting $200 from your account. Authorize or Decline?"

Alex reviews the request details, confirms it matches his intention, and taps "Authorize".

5. Response and payment processing: Once Alex authorizes the request, two things can happen:

‍Fund transfer: First Nations Bank simultaneously initiates a $200 credit transfer through the network to SportsBetX's account at Main Street Bank, including the reference data from the original RfP to ensure proper routing.‍
RfP response: First Nations Bank sends an acceptance message (ISO 20022 pain.014) back through the network to SportsBetX's banking partner, Main Street Bank, confirming Alex's authorization. This is however optional, and Main Street Bank might directly send a credit transfer, thereby skipping this step.

6. Completion and Confirmation

SportsBetX's banking partner, Main Street Bank, receives the funds and credits SportsBetX's account
SportsBetX immediately adds $200 to Alex's betting wallet
Alex receives dual confirmations: one from his bank showing the debit and another from SportsBetX showing the successful deposit
Alex can now place his bet before the game starts

Other business use cases for RfP

RfP offers compelling use cases for various financial services:

Utility bill payments: RfP enables utility companies to send standardized payment requests directly to customers with all bill details included. Customers can instantly authorize payments through their banking app or online portal, eliminating manual account entry and providing immediate settlement via RTP® or FedNow®.
Down payments: RfP can streamline the car down payment process by allowing the dealership to send you a standardized, secure payment request that includes all necessary details, which you can then authorize through your banking app or online portal rather than handling paper checks or making in-person payments.
Digital wallet funding: A digital wallet user can instantly add funds for gaming, shopping, or other online activities by receiving an RfP from the platform, which they can approve through their banking app for immediate settlement via RTP® or FedNow®, eliminating waiting periods and traditional transfer delays.
B2B payment collection: Payment service providers can leverage RfP to help their business clients request payments for invoices, enabling faster collections with clear payment references, eliminating manual payment tracking.

How businesses are benefiting from RfP

Reduced payment failures: With RfP, payment requests include all necessary information and require explicit authorization, resulting in fewer failed transactions and reducing the operational costs associated with payment exceptions
Users remain in control: By utilizing the "push payment model” rather than automatic debits, RfP creates a protective authorization barrier for transactions. Your user maintains full control over payment approval, ensuring only legitimate transactions proceed.
Improved cash flow management: The real-time nature of RfP enables businesses to receive funds instantly upon approval, dramatically improving cash flow predictability and management compared to traditional methods. With 24/7 and weekend capabilities, businesses are no longer constrained by banking hours or processing delays, ensuring continuous cash flow even outside regular business days.
Better customer experience: RfP offers a more transparent payment experience where customers receive detailed information about what they're paying for before authorizing the transaction. For businesses sending RfPs, it provides peace of mind as authorized payments are final and irreversible, eliminating concerns about chargebacks or payment returns that plague other payment methods.

Implementation considerations

When implementing RfP capabilities, financial institutions should consider:

Technical infrastructure: Ensuring systems can handle the ISO 20022 message formats required for RfP is foundational. This includes developing the capability to process pain.013 (request) and pain.014 (response) messages, while maintaining compatibility with existing payment rails.
User experience Risk management: Developing appropriate monitoring systems to detect potential fraud or misuse requires a multi-layered approach. This includes implementing real-time transaction monitoring that can flag unusual RfP patterns, establishing velocity limits for various transaction types, and creating robust customer authentication protocols.
Customer education: Helping clients understand how to effectively use RfP for their business needs goes beyond simple tutorials. Institutions should develop comprehensive education programs that include use case examples tailored to specific industry segments, clear explanations of security benefits compared to traditional payment methods, and step-by-step implementation guides.

Future-forward finance

Request for Payment (RfP) facilitates how businesses receive money by enabling immediate settlement and improving cash flow. For consumers, RfP removes the need to juggle payment portals or forgotten passwords, and instead provides a quick authorization through a trusted banking app. Both sides benefit from clear, detailed payment information that eliminates confusion. As digital payments evolve, RfP stands at the intersection of convenience and efficiency, promising to transform transaction experiences across industries from retail and healthcare to property management and professional services.

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^{1 Cross River does not yet offer Request for Payment (RfP)}

^{2 Alex', 'SportsBetX', 'Main Street Bank', and 'First Nations Bank' are fictional names used only to cite as examples for this article.}

Appendix: Relevant terms involved with RfP

Term	Definition
Request for Payment (RfP)	RfP is a service available in both the RTP® and FedNow® networks that allows customers of participating banks to request funds in real-time
RfP Send	Sending an RfP to another bank
RfP receive	Receiving an RfP from another bank
Sender	The customer of the bank sending the payment
Sending Bank	The bank sending the payment
Receiver	The customer of the bank receiving the payment
Receiving Bank	The bank receiving the payment
RfP sending bank	The bank who is sending the RfP. This bank will actually be the receiving bank, since they will be ultimately receiving the payment in the RfP model
RfP receiving bank	The bank who is receiving the RfP. This bank will actually be the sending bank, since they will ultimately be sending the payment in the RfP model
FedNow®	Domestic instant payment network offered by the Federal Reserve
RTP®	Domestic instant payment network offered by The Clearing House
RfP “Accept”	The customer receiving the payment instruction indicates that they will complete the request. In the RfP scenario, “Accept” and “Authorize” are used interchangeably – it means that the customer will pay the customer who sent them the RfP
RfP “Reject”	The customer receiving the payment instruction indicates that they will complete the request. In the RfP scenario, “Reject” and “Decline” are used interchangeably – it means that the customer will pay the customer who sent them the RfP.
Network	An ecosystem for which payment instructions are sent to and received from each other
ISO 20022	A multi-part International Standard prepared by ISO Technical Committee TC68 Financial Services
Pacs.008	Credit transfer message – the ISO 20022 message in RTP® that transmits the physical funds from the sending bank to the receiving bank
Pain.013	Request for payment ISO 20022 message
Pain.014	Response to request for payment ISO 20022 message
Camt.056	Request for return of funds – the ISO 20022 message in RTP® that the sending bank sends to the receiving bank asking them to return the funds that were sent to them
Good funds	Customers must have a balance in their account greater than or equal to the amount of the payment they want to send, or else, the payment will not send
API	Application Programming Interface – the mechanisms that enable two software components to communicate with each other using a set of definitions and protocols
Instant	Payment is sent or received instantly
Net sender	A bank that processes more payments outbound instead of inbound.
Intermediate	Bank that transmits funds from the sender’s bank to the receiver’s bank in a transaction
Settlement	The physical movement of the money in a payment transaction from one bank account to another bank account
Wire transfer	A traditional electronic transfer of funds via a network that is administered by banks and transfer service agencies around the world.
FedWire	A domestic wire transfer network operated by the Federal Reserve
Federal Reserve	The central bank of the United States
Federal Reserve Bank of New York	One of the several banks that are operated by the Federal Reserve
Central Bank	An institution that manages the currency and monetary policy of a country.
Liquidity	The money that a bank keeps in custody for its customers to send payments
Billpay	The process of one party (customer) paying for the goods or services offered by another party (biller)
RTP® joint account	Single account at the Federal Reserve Bank of New York that TCH owns, of which every bank in the RTP® network maintains a separate balance in. This is where the settlement of RTP® transactions happen
Transaction	A completed agreement between two parties to exchange goods, services, or financial assets in return for money
DDA	Demand Deposit Account – a “bank account” that a customer of a bank uses to keep, send, and receive money
Reach	The ability to be able to successfully send a payment to a DDA
Use case	A use to which a payment or request for payment can be applied
Digital wallet	An electronic device, online service, or software program that allows one party to make electronic transactions with another party bartering digital currency units for goods and services
Funding	Adding money into an account or digital wallet
Adoption	The action of a bank beginning to use a payment method
Retail	Retail is the offering of banking and payment services to consumers, in contrast to wholesaling, which is to business or institutional customers
Operating rules	Rules that govern the use of a payment network
Disputes	When a customer disputes (challenges) a payment and asks the bank to reverse it
RTN (routing number)	A nine-digit number identifies your bank in a financial transaction. It is used to route a payment you sent to the proper bank or vice versa for inbound.
Warranty	Financial commitments that require the debtor to make a repayment based on the terms outlined in the original debt agreement. RTP® has a warranty process established for RfP.
Bi-lateral RfP arrangements	”Exceptions” established between 2 individual banks where the RfP use case is not yet deemed permissible by TCH, but TCH is allowing these 2 banks to use RfP for that specific use case. These arrangements will be required for any use cases outside of the 4 that were deemed permissible during phase 1 The arrangements will be facilitated by TCH during the RfP sender registration process for that specific use case. To be clear, the bank may already be registered as an RfP sender, however registration is currently (and will be for the foreseeable future) on a per use case basis, so the bank would in that case need to register that new use case.
Ramp-up	A period where payment volume is intentionally increased - typically occurs during the new release of a product or feature
FBC	Fintech Banking Committee
ERC	Enterprise Risk Committee
International transaction	A transaction that either originated from or is being sent to a bank that is not domiciled in the US.
Certify/Certification/Certified	Certified means that a bank is live in production on the respective network to use certain functions. RTP® and FedNow® require any bank to pass a test before they can use the service in production, and that test requires the bank demonstrate the ability to perform whatever types of payments that they plan to use in production. That test is also referred to as the certification process. So, to be granted access to the production environment on RTP® or FedNow®, a bank must separately certify to both networks.
User experience (UX)	The experience(s) or journey(s) that a user has when interacting with a UI
Party	Individual or business that either sends or receives a payment
Intermediary	An institution that acts as a middleman between two parties in order to facilitate a financial transaction