choose correctly between ACH, wire, RTP, and FedNow for a US money movement

Steps

1. Determine finality requirements: ACH (standard and same-day) is not final — returns are possible for up to 60 days for unauthorized debits; RTP and FedNow are irrevocable once completed; Fedwire is irrevocable same-day.
2. Determine speed requirements: Standard ACH settles T+1 or T+2; Same Day ACH settles same business day if submitted before NACHA cutoffs (multiple windows); RTP and FedNow settle in seconds, 24/7/365; Fedwire settles same day during Fed operating hours.
3. Check amount limits: Same Day ACH has a per-transaction cap (currently $1 million); RTP (The Clearing House) has a per-transaction cap (currently $1 million); FedNow also has a configurable cap (default lower, up to $500,000 at launch but subject to change); Fedwire has no practical limit.
4. Assess cost: ACH is the cheapest rail (fractions of a cent to a few cents); RTP and FedNow cost more per transaction than ACH but less than wire; Fedwire is the most expensive per transaction.
5. Confirm receiver readiness: Not all banks participate in RTP or FedNow; verify receiver bank participation using The Clearing House's participant directory (for RTP) or the Federal Reserve's FedNow participant list before routing.
6. Select the rail: use Standard ACH for low-cost bulk payroll/B2B; Same Day ACH for urgent but reversible payments; RTP/FedNow for real-time irrevocable consumer or business payments; Fedwire for large, time-critical, irrevocable B2B or securities settlement.