Good Funds Payment Processing: FedNow® & RTP® Real-Time Payments

What are Good Funds?

Good Funds refer to immediately available, cleared funds that a recipient can access without delays, holds, or risk of reversal. Unlike pending transactions that require processing time, Good Funds ensure that once a payment is made, it is final, secure, and fully settled. This eliminates the risk of insufficient funds (NSF), chargebacks, or payment failures, making it an essential component for business-to-business (B2B) transactions, payroll, real estate settlements, and financial institutions. Traditionally, Good Funds were associated with wire transfers and cashier’s checks, but modern real-time payment systems like FedNow® and RTP® (Real-Time Payments) have revolutionized the process by enabling instant Good Funds transactions 24/7/365.

With the introduction of FedNow® (Federal Reserve) and RTP® (The Clearing House), businesses and consumers can now send and receive Good Funds payments instantly, bypassing traditional banking cutoffs and settlement delays. Unlike ACH transfers, which can take 1–3 business days, or credit card payments that involve interchange fees and chargeback risks, Good Funds transactions through real-time payment networks are irreversible, fraud-resistant, and cost-effective. This makes them ideal for high-value payments, vendor transactions, and industries requiring guaranteed fund availability. As businesses shift towards faster, more secure digital payment solutions, Good Funds processing with real-time payments is becoming the new standard for financial transactions.

Good Funds Payment Processing refers to instant, real-time payments where the recipient has immediate access to cleared funds without delays, reversals, or settlement risks. With FedNow® and RTP® (Real-Time Payments), businesses can send and receive Good Funds payments 24/7/365, eliminating waiting periods associated with ACH, wire transfers, and credit cards.

Both FedNow® (by the Federal Reserve) and RTP® (by The Clearing House) offer Good Funds processing, meaning once a transaction is completed, the funds are instantly available, secure, and final.

Benefits of Good Funds Payment Processing with FedNow® & RTP®

✅ 1. Instant Settlement & 24/7 Availability

• Funds are immediately available to the recipient, eliminating delays.
• Unlike ACH or wire transfers, payments process 24/7, including weekends & holidays.

✅ 2. Secure, Final Transactions (No Chargebacks or Reversals)

• Good Funds transactions are final, preventing fraud and chargebacks.
• No risk of insufficient funds (NSF) or delayed settlements like with ACH.

✅ 3. Lower Transaction Costs vs. Credit Cards & Wires

• FedNow® and RTP® transactions cost significantly less than wire transfers.
• Avoid high credit card fees (2.5%–3.5%) and interchange costs.

✅ 4. Improved Cash Flow & Liquidity

• Immediate access to Good Funds improves working capital.
• Businesses can instantly reinvest or pay suppliers without delay.

✅ 5. Best for High-Value & Recurring Transactions

• Ideal for B2B, payroll, supplier payments, and high-risk industries.
• No holds or processing delays—ensuring smooth business operations.

FedNow® vs. RTP® for Good Funds Payment Processing

Feature	FedNow® Real-Time Payments	RTP® (Real-Time Payments)
Operator	Federal Reserve	The Clearing House
Network Accessibility	Open to all U.S. banks & credit unions	Limited to TCH network banks
Transaction Limits	Up to $500K per transaction (bank-dependent)	Up to $1M per transaction
Settlement Finality	Immediate & irreversible	Immediate & irreversible
Best For	Small & mid-sized businesses, payroll, B2B	Larger banks, high-value B2B transactions

Which One Should You Choose?

✅ Use FedNow® if you need real-time payments accessible at any U.S. financial institution.
✅ Use RTP® if your bank is part of The Clearing House and you require higher transaction limits.
✅ Use an interoperable payment processor if you want access to both networks.

Good Funds Payment Processing vs. Legacy Payment Methods

Feature	Good Funds (FedNow® & RTP®)	ACH Transfers	Wire Transfers	Credit Card Payments
Speed	Instant (seconds)	1–3 business days	Same-day (cutoff restrictions)	1–3 business days
Availability	24/7/365	Business hours only	Business hours only	Business hours only
Transaction Fees	Lower than wires & credit cards	Low, but slower	High ($15–$50 per transfer)	2.5%–3.5% + fees
Settlement Finality	Immediate & irreversible	Can be reversed	Final	Can be disputed
Best For	B2B, payroll, supplier payments, online transactions	Recurring batch payments	Large, one-time international transactions	Consumer transactions

Who Should Use Good Funds Payment Processing?

📌 B2B & Enterprise Payments – Eliminate ACH and wire delays for faster supplier payments.
📌 Payroll & Contractor Payments – Pay employees and freelancers instantly, with no bank cut-offs.
📌 E-commerce & Online Businesses – Accept real-time payments without credit card fees.
📌 Intercompany Transfers – Move funds between business accounts instantly, with low transaction costs.
📌 Financial Institutions & Payment Processors – Expand real-time payment offerings to customers.

How to Get Started with Good Funds Payment Processing

🔹 Check with Your Bank or Payment Processor – Ensure your financial institution supports FedNow®, RTP®, or both.
🔹 Compare Pricing & Transaction Fees – Use a real-time payment calculator to see potential cost savings.
🔹 Set Up a Real-Time Payment-Enabled Business Account – Work with your bank to activate FedNow® or RTP® for instant transactions.
🔹 Integrate with ERP & Accounting Systems – Use QuickBooks®, NetSuite, SAP, or other financial tools for automation.
🔹 Train Your Team – Educate employees on how Good Funds Payment Processing improves transaction efficiency.

🚀 Upgrade your business payments with FedNow® & RTP® today! Contact us to enable real-time transactions and optimize financial operations.

Value through Innovation

Your Choice ~ Integrate your software system with us (e.g. Real Estate / eCommerce / Accounting / Billing / CRM / Invoicing or, send us your API and we'll integrate with YOU! Since inception, GFGMS has focused on providing maximum value to our customers by expanding the technological capabilities of core payment infrastructures. Through these developments, we have been able to help our clients reduce their operating costs, increase cash flow and maximize their resources. As the payment industry evolves, GFGMS is committed to providing leadership and solutions that leverage emerging technologies. Through these innovations, we fulfill our company’s primary objective: to provide our clients with the services and tools they need to succeed.

Good Funds Gateway Advantages

100% Secure Payment Processing
Form 1099 Generation
Online "Credit-Push" Payment Solutions for "Pay-0uts" (Accounts Payable)
Eliminate Paper Checks
Eliminate customer service calls
Payment Processing Method Selection
Eliminate waiting for checks to "clear"
Payment Reconciliation
Reduce Accounting Time and Expenses