ISO 20022 Request for Payment (RfP™) Terms & Definition

Accept Request for Payment Service – FedNow®, RTP®, and Same-Day ACH Transactions

The Future of Instant & Automated Payment Requests

Request for Payment (RfP™) is a service available on both the RTP® and FedNow® networks that allows customers of participating financial institutions to request funds from another customer in real time. An RfP™ Send occurs when a customer or bank initiates and transmits a request for payment to another bank. An RfP™ Receive occurs when a customer or bank receives a request for payment from another bank.

The Sender is the customer whose bank originates the payment or request, while the Sending Bank is the financial institution transmitting that payment or request. The Receiver is the customer who receives the payment or request, and the Receiving Bank is the financial institution that receives it. In the RfP™ model, the terminology can be counterintuitive: the RfP™ Sending Bank is the bank that sends the RfP™ but ultimately receives the payment, whereas the RfP™ Receiving Bank is the bank that receives the RfP™ but ultimately sends the payment when it is authorized.

FedNow® is a domestic instant payment network operated by the Federal Reserve, while RTP® is a domestic instant payment network operated by The Clearing House. When an RfP™ is received, the payer may choose to Accept (also referred to as Authorize) the request, indicating that they will complete the payment. Alternatively, the payer may Reject (or Decline) the request, indicating that they will not complete the payment.

A Network is the ecosystem through which payment instructions are sent and received between participants. ISO 20022 is a multi-part international messaging standard developed by ISO Technical Committee TC68 for financial services. Within ISO 20022, pacs.008 is the credit transfer message used in RTP® to transmit funds between banks, pain.013 is the message used to initiate a request for payment, and pain.014 is the message used to respond to a request for payment. camt.056 is the message used to request the return of funds that were previously sent.

Good funds refers to the requirement that a customer’s account balance must be equal to or greater than the amount of the payment being sent. An API (Application Programming Interface) is the mechanism that enables different software systems to communicate using defined protocols. An Instant Payment is a payment that is sent and received in real time. A Net Sender is a bank that sends more payments than it receives, while an Intermediate Bank is a bank that transmits funds between the sender’s bank and the receiver’s bank.

Settlement refers to the actual movement of funds from one bank account to another. A Wire Transfer is a traditional electronic transfer of funds conducted through bank-operated networks, such as Fedwire, which is operated by the Federal Reserve. The Federal Reserve is the central bank of the United States, and the Federal Reserve Bank of New York is one of the regional Federal Reserve Banks. A Central Bank is an institution responsible for managing a country’s currency and monetary policy.

Liquidity is the money a bank holds to meet payment obligations. Bill Pay is the process by which a customer pays a biller for goods or services. The RTP® Joint Account is a single account at the Federal Reserve Bank of New York owned by The Clearing House, in which RTP® participant banks maintain balances for settlement. A Transaction is a completed exchange of goods, services, or financial assets for money.

A DDA (Demand Deposit Account) is a standard bank account used to store, send, and receive funds. Reach refers to the ability to successfully send a payment to a DDA. A Use Case describes the purpose for which a payment or RfP™ is applied. A Digital Wallet is an electronic service or software application that allows users to conduct electronic transactions.

Funding is the act of adding money to an account or digital wallet. Adoption refers to a bank beginning to use a payment method. Retail banking focuses on consumer services, while wholesale banking serves businesses and institutions. Operating Rules are the rules governing participation in a payment network. Disputes occur when a customer challenges a payment and requests reversal.

An RTN (Routing Number) is a nine-digit number used to identify a bank in financial transactions. A Warranty is a financial commitment requiring repayment under defined terms; RTP® includes a warranty process for RfP™ transactions. Bilateral RfP™ Arrangements are exceptions agreed upon between two banks for use cases not yet broadly permitted by The Clearing House. These arrangements are managed during the RfP™ sender registration process and are approved on a per-use-case basis.

A Ramp-Up period is a controlled increase in transaction volume during a new product or feature launch. FBC (Fintech Banking Committee) and ERC (Enterprise Risk Committee) are governance bodies involved in oversight. An International Transaction involves a bank not domiciled in the United States.

Certification means a bank has successfully completed required testing and is authorized to operate in a production environment on RTP® or FedNow®. Banks must certify separately on each network. User Experience (UX) refers to the overall interaction a user has with a system or interface. A Party is an individual or business involved in sending or receiving a payment. An Intermediary is an institution that acts as a middleman to facilitate a financial transaction.

This glossary provides definitions for core terms used in real-time payment messaging across RTP® and FedNow®, including ISO 20022 message types, alias invoicing, Hosted Payments Page routing, and network orchestration.

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 sending the RfP™ (receiving the actual funds in this model).
RfP™ Receiving Bank	The bank receiving the RfP™ (sending the actual funds in this model).
FedNow®	Domestic instant payment network offered by the Federal Reserve.
RTP®	Domestic instant payment network offered by The Clearing House.
RfP™ “Accept”	Customer indicates they will complete the request (authorize payment).
RfP™ “Reject”	Customer declines to complete the RfP™ (declines payment request).
Network	An ecosystem for which payment instructions are sent and received.
ISO 20022	A multi-part international standard prepared by ISO TC68 for financial services.
Pacs.008	ISO 20022 credit transfer message for funds movement in RTP®.
Pain.013	ISO 20022 message for initiating a Request for Payment (RfP™).
Pain.014	ISO 20022 message response to a Request for Payment (RfP™).
Camt.056	Request for return of funds message in ISO 20022 used in RTP®.
Good Funds	Customers must have sufficient balance to complete a real-time payment.
API	Application Programming Interface that enables integration between systems.
Instant	Payment is executed and confirmed immediately.
Net Sender	A bank that sends more payments than it receives.
Intermediate	A bank that transmits funds between sender and receiver institutions.
Settlement	The actual movement of funds between bank accounts.
Wire Transfer	Traditional funds transfer using interbank networks.
FedWire	U.S. 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 regional Reserve Banks under the Federal Reserve.
Central Bank	An institution managing a country’s currency and monetary policy.
Liquidity	Cash held by a bank to meet customer payment obligations.
Billpay	Process of customers paying businesses for goods or services.
RTP® Joint Account	A shared account at FRB New York for RTP® participants to settle payments.
Transaction	A completed exchange between two parties involving payment.
DDA	Demand Deposit Account – standard checking/savings account.
Reach	The ability to deliver payments to a DDA at a financial institution.
Use Case	Specific business function for which a payment is applied.
Digital Wallet	Software or device enabling digital currency payments.
Funding	Adding money to an account or wallet for transaction use.
Adoption	When a bank begins using RTP® or FedNow® functionality.
Retail	Banking services delivered to individual consumers.
Operating Rules	The rules that govern how a payment network functions.
Disputes	Challenges by customers to reverse or reject payments.
RTN (Routing Number)	A 9-digit number used to identify a financial institution.
Warranty	A process to ensure repayment obligations are met in RTP®.
Bi-lateral RfP™ Arrangements	Special agreements between two banks for non-standard RfP™ use cases.
Ramp-Up	Controlled increase in payment volume to test new systems.
FBC	Fintech Banking Committee – regulatory or advisory body.
ERC	Enterprise Risk Committee – evaluates systemic financial risks.
International Transaction	A cross-border payment sent to or from a non-U.S. bank.
Certify / Certification / Certified	Required testing and approval process to go live with RTP® or FedNow®.
User Experience (UX)	Overall user interaction quality with a payment interface.
Party	An entity (individual or business) involved in sending or receiving a payment.
Intermediary	A third-party bank facilitating the transaction between sender and receiver.

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Creation Request for Payment Bank File

Enhance Your Payment Requests with FedNow’s ISO 20022 Messaging

Streamline Payments with Advanced Request for Payment Options:

Harness the power of FedNow's Request for Payment system to transform how you manage invoices and remittances. Our platform supports diverse data integration options, allowing payees to incorporate detailed invoice data directly within the RfP™ message or link to a comprehensive Merchant Page.

Flexible Invoice Details with ISO 20022 Messaging:

Leverage the flexibility of ISO 20022 messaging standards in our RfP™ system. You can choose to display crucial payment details directly in the message with a concise 140-character description, or through a dynamic "Hyper-Link" leading to a detailed Merchant Page. This Merchant Page can be hosted either on your website "Your Website" - Hosted Payments Page or TodayPayments.com/HostedPaymentPage.html through our seamless integration solution.

Customizable Merchant Pages for Enhanced Customer Experience:

Create a Merchant Page that not only details all the MIDs you own but also presents these options attractively to your customers through the RfP™. This customization ensures that whether your payer opts for Real-Time Payment, Same-Day ACH, or Card transactions, they can easily navigate and complete their payments through a simple click on the hyperlink provided on your Merchant Page.

Detailed Payment Information and Streamlined Processes:

By adopting ISO 20022 specifications, our system enables you to enrich the RfP™ messages with customized, detailed information that facilitates more than just transaction efficiency—it optimizes your entire payment and accounting processes. This added detail helps in streamlining operations, reducing errors, and enhancing the payment experience for both payers and payees.

Optimize Your Transaction Process with FedNow and ISO 20022:

Embrace the future of financial transactions by integrating these advanced capabilities into your payment systems. Our solutions not only provide the technical sophistication needed to handle detailed transaction information but also offer the flexibility and user-friendliness necessary to meet the diverse needs of modern businesses and consumers.

Call us, the .csv and or .xml FedNow or Request for Payment (RfP™) file you need while on your 1st phone call! We guarantee our reports work to your Bank and Credit Union. We were years ahead of competitors recognizing the benefits of RequestForPayment.com. We are not a Bank. Our function as a role as an "Accounting System" in Open Banking with Real-Time Payments to work with Billers to create the Request for Payment to upload the Biller's Bank online platform. U.S. Companies need help to learn the RfP™ message delivering their bank. Today Payments' ISO 20022 Payment Initiation (PAIN .013) shows how to implement Create Real-Time Payments Request for Payment File up front delivering a message from the Creditor (Payee) to it's bank. Most banks (FIs) will deliver the message Import and Batch files for their company depositors for both FedNow and Real-Time Payments (RtP). Once uploaded correctly, the Creditor's (Payee's) bank continues through a "Payment Hub", will be the RtP Hub will be The Clearing House, with messaging to the Debtor's. (Payer's) bank.