What is RTP® Surcharge? How Does It Work?
How Shifting Payment Processing Fees to the Payer
RTP® Surcharge – Payer-Paid Processing Fees for Instant Real-Time Payments
Transforming Instant Payments with RTP® Surcharge
Businesses accepting digital payments often struggle with high processing fees, long settlement times, and costly chargebacks. Traditional payment methods such as credit cards and ACH transfers can be expensive for merchants, cutting into profit margins.
With the RTP® Surcharge model, businesses can:
✅ Pass merchant processing fees
to the payer for cost-effective transactions
✅
Process instant A2A Credit & Debit transactions using RTP®
✅ Use RTP® for POS, MOTO (Mail Order/Telephone
Order), Auto-Bill Pay, and invoicing
✅
Leverage ISO 20022 messaging for structured, secure, and automated
payments
✅ Reduce chargeback risks with
final, irrevocable RTP® payments
With TodayPayments, businesses can seamlessly implement RTP® surcharges, ensuring a cost-effective, fast, and transparent payment processing model.
RTP® Surcharge vs. Traditional Payment Processing
RTP® Surcharge is a payment model where the payer (customer) covers the merchant’s processing fees, reducing the financial burden on businesses. This model is becoming increasingly popular as businesses seek more cost-effective ways to process digital payments.
✔ The Payee
(merchant/business) applies an RTP® surcharge – typically a
small percentage of the transaction.
✔ The
Payer (customer/client) covers the processing fee at checkout.
✔ Funds settle instantly, ensuring immediate
transaction completion.
✔ Applies across
multiple payment channels: POS, MOTO, Auto-Bill Pay, and
invoicing.
Why Businesses Are Adopting the RTP®
Surcharge Model:
✔ Eliminates
costly merchant processing fees
✔ Encourages
instant, secure RTP® transactions over credit card payments
✔ Provides transparent cost distribution for
businesses and customers
Why This Model is More Cost-Efficient for Merchants
|
Feature |
RTP® Surcharge Model |
Traditional Merchant-Paid Fees |
|
Processing Speed |
Instant (24/7/365) RTP® payments |
ACH: 1-3 days, Credit Cards: 1-5 days |
|
Merchant Processing Fees |
Paid by Payer (Customer/Client) |
Absorbed by Business |
|
Bank Reconciliation |
Automated via ISO 20022 Messaging |
Manual reconciliation required |
|
Chargeback & Fraud Risk |
Low (RTP® payments are final and irrevocable) |
Higher risk due to credit card chargebacks |
|
Customer Payment Experience |
Transparent pricing with a disclosed surcharge |
Hidden processing fees passed to merchants |
Why Businesses Are Switching to RTP®
Surcharging:
✔ Minimizes
operational costs by shifting fees to the payer
✔
Provides instant transaction settlement, improving cash flow
✔ Reduces chargeback risks compared to credit card
payments
How RTP® Surcharge Works for POS, MOTO, Auto-Bill Pay & Invoicing
Seamless Integration for Multiple Payment Channels
With TodayPayments' RTP® integration, businesses can apply surcharges across various payment environments:
í ½í´¹ Point of Sale (POS):
Implement RTP® surcharges at checkout for in-person transactions.
í ½í´¹ Mail Order / Telephone Order (MOTO): Apply
surcharges for phone-based transactions.
í ½í´¹
Auto-Bill Pay: Automate recurring payments with RTP® while
passing fees to the payer.
í ½í´¹ Invoicing &
Online Payments: Include an .html payment link with a
disclosed surcharge for customers.
How It Works:
✔
Step 1: The business sets a RTP® surcharge on
transactions
✔ Step 2: The customer
selects RTP® as the payment method and sees the surcharge
✔ Step 3: The total transaction amount
(including surcharge) is processed instantly
✔
Step 4: Funds are settled immediately, and businesses
receive full payment without deductions
This model eliminates hidden processing costs for businesses while giving customers a fast, secure payment option.
Surcharging and Cash Discounts with
RTP®:
The payment processing method application of
surcharging or cash discounts to RTP® transactions is not
explicitly addressed in current Federal or state laws, which
primarily focus on credit card transactions.
However,
the principles may be analogous:
• Surcharging:
Applying a surcharge to RTP® payments could be subject to similar
regulations as credit card surcharges, depending on state laws.
Merchants should exercise caution and consult legal counsel before
implementing such fees.
• Cash Discounts: Offering
discounts for using RTP® payments is generally permissible
nationwide, aligning with the legal status of cash discount
programs.
Ask us how:
"How to implement RTP® Surcharge payment
processing for businesses"
"Best surcharge model for
real-time A2A transactions with RTP®"
"POS, MOTO,
Auto-Bill Pay, and invoicing with RTP® Surcharge"
"ISO
20022 messaging for secure and real-time payment reconciliation"
"How businesses can pass payment processing fees to customers
using RTP®"
Security & Compliance with ISO 20022 Messaging
Ensuring Transparent, Fraud-Proof Transactions
Unlike traditional payment processing models, RTP® Surcharge transactions provide a fully secure and automated solution.
✔ ISO 20022 Messaging –
Ensures structured, real-time transaction tracking.
✔
Automated Payment Reconciliation – Eliminates manual
processing errors.
✔ End-to-End Encryption
– Protects against fraud, hacking, and unauthorized access.
✔ Final & Non-Reversible Transactions –
Eliminates chargeback risks.
✔ Regulatory
Compliance – Meets all federal standards for secure real-time
payments.
With TodayPayments, businesses can transition to real-time, automated payment collection with cost-efficient surcharging options.
Upgrade to RTP® Surcharge Payments with TodayPayments
For businesses looking to eliminate payment processing fees, improve cash flow, and accelerate transactions, the RTP® Surcharge model is the perfect solution.
With
TodayPayments, businesses can:
✔
Enable payer-covered processing fees for instant payments
✔ Accept payments across POS, MOTO, Auto-Bill Pay,
and invoicing
✔ Provide a real-time, low-cost
alternative to credit card transactions
✔ Automate
reconciliation and eliminate chargeback risks
✔
Offer secure, final payments with RTP® and ISO 20022 messaging
í ½íº€ Upgrade your payment processing—implement the RTP® Surcharge model today! í ½íº€
Creation Request for Payment Bank File
Enhance Your FedNow Surcharge using Real-Time Payments 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 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.
Call us today and receive the .csv or .xml FedNow® or Request for Payment (RfP) file you need—all during your very first phone call! We guarantee that our comprehensive reports integrate flawlessly with your bank or credit union. As pioneers in recognizing the benefits of RequestForPayment.com, we have stayed years ahead of our competitors. Although we are not a bank, our role as an "Accounting System" within the Open Banking ecosystem enables us to work with billers to create effective RfP files that seamlessly upload to the biller's online banking platform. U.S. companies rely on our expertise to learn how to deliver the RfP message directly to their bank with precision.
Our advanced solution, Today Payments' ISO 20022 Payment Initiation (PAIN.013), demonstrates how to create a Real-Time Payments Request for Payment file that sends a clear message from the creditor (payee) to its bank. Most financial institutions support the import of messaging and batch files for both FedNow® and Real-Time Payments (RtP), ensuring smooth processing. Once the file is correctly uploaded, the creditor’s bank processes the payment through a secure "Payment Hub"—with The Clearing House serving as the RtP Hub—and relays the message to the debtor's (payer's) bank. This streamlined approach not only accelerates transaction processing but also enhances transparency and reliability for all parties involved.
... easily create Real-Time Payments RfP files. No risk. Test with your bank and delete "test" files before APPROVAL on your Bank's Online Payments Platform.
Today Payments is a leader in the evolution of immediate payments. We were years ahead of competitors recognizing the benefits of Same-Day ACH
and Real-Time Payments funding. Our business clients receive faster
availability of funds on deposited items and instant notification of
items presented for deposit all based on real-time activity.
Dedicated to providing superior customer service and
industry-leading technology.
Contact Us for Request For Payment payment processing
