Real-Time Request Payment

Integrating Real-Time Request for Payment (RfP) from a bank's dashboard or a payee/biller payment page for both one-time and recurring payments can significantly enhance the payment experience for businesses and consumers. Here’s how you can implement this using RTP and FedNow with QuickBooks Online (QBO):

Real-Time Request for Payment (RfP) Integration Steps

1. Set Up Payment Processing in QuickBooks Online (QBO):
   • Ensure QuickBooks Online (QBO) is configured to support payment processing through real-time payment networks like RTP (The Clearing House) and FedNow (Federal Reserve).
   • Register with payment processors or platforms that facilitate RTP and FedNow transactions, such as TodayPayments.com or SecureQBPlugin.com.
2. Configure ISO 20022 Messaging:
   • Ensure that the payment processor supports ISO 20022 messaging standard for rich data exchange.
   • Configure QBO to handle ISO 20022 formatted messages for RfP transactions.
3. Create Digital Invoices:
   • Use QBO to create digital invoices with all necessary details (amount, due date, itemized charges).
   • Configure invoices to include options for one-time or recurring payments as per the requirements.
4. Generate RfP for One-Time Payments:
   • In QBO, generate an RfP for a one-time payment when an invoice is created.
   • The RfP is formatted in ISO 20022 and sent to the payer via their bank’s dashboard or through an email link directing them to the payee’s payment page.
5. Set Up Recurring Payments:
   • For recurring payments, set up the recurring invoices in QBO.
   • Configure the RfP to be sent at regular intervals (e.g., monthly, quarterly) to the payer’s bank or payment app.
6. Sending RfP to Payers:
   • The RfP is sent to the payer’s bank dashboard or the payee’s payment page.
   • Payers receive the RfP notification and can review the details in their bank’s interface or the payment page.
7. Payer Approval and Instant Payment:
   • Payers review the RfP, approve it, and the payment is processed instantly through RTP or FedNow.
   • The payment is settled immediately, ensuring real-time transfer of funds.
8. Payment Confirmation and Reconciliation:
   • Both payer and payee receive payment confirmation.
   • QBO updates the invoice status to 'Paid' and reconciles the payment in real-time.
   • For recurring payments, the process is automated, and invoices are updated as payments are received.
9. Record Keeping and Reporting:
   • All transaction details, including the rich remittance information provided by ISO 20022, are stored in QBO.
   • This allows for detailed reporting, easy reconciliation, and efficient financial management.

Example Workflow for One-Time and Recurring Payments

One-Time Payment

1. Invoice Generation:
   • A business generates a one-time invoice in QBO.
2. RfP Creation and Sending:
   • QBO formats the invoice as an RfP using ISO 20022 and sends it to the payer’s bank dashboard or payment page.
3. Payer Approval:
   • The payer receives the RfP, reviews, and approves it.
4. Instant Payment:
   • Payment is processed instantly, and QBO updates the invoice status to 'Paid'.
5. Reconciliation:
   • The payment is reconciled in QBO with rich data from ISO 20022.

Recurring Payment

1. Recurring Invoice Setup:
   • The business sets up a recurring invoice schedule in QBO.
2. Automatic RfP Generation:
   • QBO automatically generates an RfP at each billing cycle.
3. RfP Sending:
   • The RfP is sent to the payer’s bank dashboard or payment page at regular intervals.
4. Payer Approval:
   • The payer receives the RfP, reviews, and approves it for each cycle.
5. Instant Payment:
   • Payment is processed instantly each time, and QBO updates the recurring invoice status.
6. Reconciliation:
   • Each payment is reconciled in QBO with detailed remittance information.

Benefits of Real-Time RfP Integration

1. Efficiency:
   • Reduces delays in receiving payments by enabling instant processing.
2. Improved Cash Flow:
   • Enhances cash flow management with quicker payment receipts.
3. Security:
   • Reduces fraud risk with secure, encrypted ISO 20022 messaging.
4. Convenience:
   • Provides a seamless payment experience for payers with easy approval through their bank’s interface or payment page.
5. Automated Processes:
   • Automates the invoicing and payment process for recurring transactions, reducing manual intervention.

Conclusion

By integrating Real-Time Request for Payment (RfP) using ISO 20022 in QuickBooks Online (QBO) for both one-time and recurring payments, businesses can streamline their invoicing and payment processes, enhance cash flow, and improve overall efficiency. This integration ensures that payments are processed in real-time, providing a better experience for both payers and payees.