Real-Time Payments
by Maura Snabes, SVP, Corporate Counsel.
September 9, 2022
As the title industry and CSS continue to look for ways to make the customer experience quicker, more convenient and more secure, a CSS EVP attended an informational presentation on “Real-Time Payments.” Real-Time Payments (RTPs) is a new digital payment rail that provides a secure way to send good funds to a settlement within seconds and is driven by the largest financial institutions.
What makes RTPs different than ACHs or Wire Transfers?
RTPs are available in seconds, rather than within 24 hours for wires and 1-3 days for ACHs; ACHs have a reversal procedure, whereas wire transfers and RTPs are essentially irrevocable.
RTPs are certain, secure, convenient, and instantaneous.
RTPs have 24/7/365 functionality (as payments go through The Clearing House, not the Federal Reserve).
RTPs should reduce costs for a customer.
RTPs can be used for escrow or earnest money deposits, cash to close, disbursements (including commissions), and payoffs. With one network being used, you do not need to worry about third-party delivery channels like email. Everything a customer needs to initiate and pay is in one place for a completely closed-loop transaction.
CSS will keep you updated on the use of RTPs becoming available, as well as other new technologies that allow more expedient, convenient, and secure commercial closing solutions.
