What Does RTP From Paypal Mean

Last Updated:

We may earn commissions for purchases made through links on our site. Learn more on our about us page.

Paypal logo - What Does RTP From Paypal Mean

PayPal is a money transferring platform used by millions of people worldwide. It’s convenient, easy to use, and fast. Speaking of fast, it just got even faster, now with real-time-payments.

RTPs are payments transferred in a matter of seconds from one account to another and can be done year-round. So what exactly is an RTP, and what does it have to do with PayPal? Read on to find out.


What does RTP Stand for in Payments?

RTPs or real-time payments are a processing network functioning to send payments from one bank to another instantly.

This network works year round meaning you can save money quickly every day of the year, including weekends and holidays, which other networks usually won’t provide.

RTPs also don’t have business hours, so you can send money any time you need. Over 25 banks in the United States offer RTP payments, so you can check with your bank before you plan to make an instant real-time payment.

Third-party payment processing applications like PayPal and Venmo also offer this service once you have connected a card or a bank account to your account.


Is it a Direct Deposit?

RTPs are similar to direct deposits, although they wouldn’t be classified as the same thing. Real-time payments are instant payments made by transferring money from one bank account to another.

The RTPs are done through a separate network launched by the Clearing House. All RTPs go through their network before arriving at a bank.

This network is live 24/7, so you are able to send money quickly on whatever day you wish. It’s now used by people every day to send money, payroll, debts, and more.

This is because it is a highly convenient way of sending money, especially in an emergency, since it arrives mere seconds after the sending confirmation.


How Fast Can You Send Money with it?

Real-time payments aren’t called real-time for no reason. The money sent from one account arrives at the other account in seconds.

Along with the arrival, the money is available for users immediately upon arrival, which makes it a great transfer method for emergencies. So, all it takes is a few seconds for the payment to arrive.

This is also great since the network doesn’t require opening any extra accounts. You just have to find out whether your bank supports the network or not, and then you can just start sending payments.

Third-party applications like PayPal also support the RTP network, so you can send money instantly directly from the app.


Who Uses RTP from PayPal?

PayPal is a great online payment method that allows for the transfer of money from the app, cards, and bank accounts to other people.

As of today, they also offer real-time payments meaning you have the option to send your payments quickly instead of the traditional route where they would arrive in 3-5 days.

The traditional method of sending money on PayPal is free. However, the RTP method does cost a small fee. To transfer money instantly will cost you 1% of the transferred amount, up to $10. If you transfer more, you won’t pay more, and it will top out at $10.


What Are the Flaws of it?

Of course, the fee is the biggest flaw of sending money through the RTP network using PayPal. Where the traditional “slow” transfer is always free, the instant transfer costs a fee, no matter the amount transferred.

This is 1% of the transferred amount up to a maximum of $10. If you are constantly sending money through the fast method on PayPal, these fees will add up to a large number.

This also means you will need to have the extra money in your account to cover the transfer fees. So, if you have just the amount you need to transfer, the transfer won’t go through and will come back with an error since the fees won’t be covered.


Final Thoughts on the Meaning of RTP from PayPal

Technology has come really far nowadays when you can transfer a large sum of money, and it will end up on the other account within seconds.

Moreover, with PayPal and the RTP network, you can now transfer money year round no matter the hour, making your life that much easier!

Leave a Reply