Choose between Fedwire Funds Service, FedNow, and RTP for a US domestic payment and implement the routing decision

Verified steps

1. Determine time sensitivity: FedNow and RTP settle in seconds around the clock every day of the year; Fedwire operates on business days during defined hours (check current Federal Reserve hours as they change); standard ACH settles in one to two business days
2. Check receiver reachability: FedNow and RTP participation are growing but not universal — query your bank's participant directory or the TCH RTP directory before routing; fall back to Fedwire or ACH if the receiver is not reachable on the real-time rail
3. Assess amount limits: Fedwire has no transaction dollar limit for standard wires; RTP and FedNow have per-transaction limits set by TCH and the Federal Reserve respectively — check current published limits as they have been increased over time and may change again
4. Factor in cost: Fedwire carries a per-transaction fee charged by the Federal Reserve; RTP and FedNow fees are generally lower; ACH is cheapest for non-time-critical bulk payments — model the cost per rail against your use case volume
5. Implement the routing decision as a waterfall: (1) if real-time required and receiver on RTP/FedNow, use that rail; (2) if large amount or real-time required but receiver not on RTP/FedNow, use Fedwire; (3) otherwise use Same-Day or standard ACH
6. Log the rail selected, the reason, and the final settlement confirmation for each payment to support audit and dispute resolution