Real-Time Gross Settlement (RTGS)

What RTGS is

Real-time gross settlement (RTGS) is a way to settle payments between financial institutions. “Real-time” means the payment is processed as it is received. “Gross” means each payment settles individually, without first offsetting it against other payments. In the US, the Fedwire Funds Service is an RTGS system used for high-value, time-sensitive transfers.

When a Fedwire payment is accepted, the sending participant’s Federal Reserve account is debited and the receiving participant’s account is credited. The recipient’s credit in central bank money is final and irrevocable. Your bank then updates your customer account to reflect the transfer.

RTGS makes bank-to-bank settlement final quickly, but it does not reduce your card-processing rates.

How it works in the US

You encounter RTGS when your bank sends or receives a domestic wire through Fedwire. Banks and other eligible participants submit payment orders individually over an encrypted network. As of 2026, Fedwire operates 22 hours each business day, from 9 p.m. Eastern Time on the preceding calendar day until 7 p.m. Eastern Time, with hours subject to extension.

RTGS describes how banks settle with each other, not a promise that money will appear in your account instantly. Your bank’s posting process and the time you submit the wire affect when you see the funds. Fedwire settlement is final once accepted, so a mistaken or fraudulent payment is difficult to recover.

What it means for your costs

RTGS does not set your card interchange, network assessments, or processor markup. Card payments generally settle on a net basis, while domestic wires use gross settlement. Choosing a wire instead of accepting a card payment changes the payment method, not the rates on your card-processing statement.

Fedwire pricing is based on each participant’s monthly message volume, with lower per-transaction fees at higher volumes. That is the service’s pricing to participating customers, not a published merchant fee schedule. Your bank can charge your business a separate wire fee; the research provides no standard amount. Compare the outgoing or incoming wire charge shown in your bank’s transfer confirmation or account fee schedule before choosing the payment method.

When it matters to your business

RTGS is useful when a payment needs fast, final bank-to-bank settlement, such as a time-sensitive commercial payment or cash transfer. The trade-off is finality: unlike a card dispute process, a completed wire does not have a routine reversal path. Confirm the recipient’s account details and the amount before authorizing it.

A card-processing statement is not where you assess RTGS costs. Look for wire-transfer charges on your bank account statement or in the bank’s fee schedule. If a vendor describes a card-processing charge as an RTGS fee, ask which bank-to-bank wire service and transaction the charge refers to.

What you can actually change

1. 01
   Match the payment rail. Use a wire when the transfer needs fast, final bank-to-bank settlement. Compare it with ACH for payments that do not require that finality.
2. 02
   Verify before sending. Confirm the recipient name, account details, and amount before you authorize a wire. Fedwire settlement is final once accepted.
3. 03
   Separate the fees. Review wire charges in your bank’s fee schedule or transfer confirmation. Review your merchant statement separately for card-processing costs.

Frequently asked questions