> Source: [/docs/resources/guides/payment-rails](https://tempo.xyz/developers/docs/resources/guides/payment-rails.md) > Section: [Get Started](https://tempo.xyz/developers/get-started.md). Choose a starting point, send a test payment, get testnet funds, connect a coding agent, find the SDKs and CLI, and use the resource guides to plan payment workflows, liquidity, provider selection, and partner integrations. > [Documentation index](https://tempo.xyz/developers/llms.txt) · [Docs skill](https://tempo.xyz/developers/SKILL.md) > Tempo MCP: Use `search`, `find_pages`, `read_page`, and `code` at `https://mcp.tempo.xyz` for Tempo and related documentation. > If an indexed page is missing or reflects an older site, read this site’s [documentation index](https://tempo.xyz/developers/llms.txt) and Markdown pages directly. [Guides](https://tempo.xyz/developers/docs/resources/guides) / [Payment infrastructure](https://tempo.xyz/developers/docs/resources/guides#payment-infrastructure) / Compare payment rails # Compare payment rails A payment rail is the infrastructure used to move or settle value between accounts. ACH, wires, instant bank payments, and blockchains supply different parts of that process; SWIFT supplies financial messaging. Compare the complete funding, settlement, and recipient-delivery flow for the outcome you need. ## Separate the legs of a payment A business can use several rails for one payment. An ACH credit can fund an account, a stablecoin transfer can move value between providers, and a local bank payment can deliver the recipient's currency. The performance of one leg does not describe the whole payment. Record the source account and currency, the asset used between providers, and the recipient account and currency. Specify which organization confirms each stage. A message, network settlement, provider balance credit, and recipient bank deposit are different events. ## Compare the main rail types | Option | Role | Integration checks | | --- | --- | --- | | ACH | U.S. bank-account credits and debits, including scheduled and recurring payments. | Account validation, debit authorization where applicable, deadlines, settlement windows, returns, and charges. | | Domestic wire | A bank payment using a service such as Fedwire. | Participating banks, customer cutoffs, beneficiary details, fees, and evidence of recipient credit. | | Domestic instant payment | Around-the-clock payments through participating institutions, such as FedNow. | Availability for both accounts, product limits, fraud controls, pricing, and recipient access. | | SWIFT-enabled international payment | Financial messages coordinate a payment between institutions. | Currency route, banks and providers moving funds, deductions, FX, tracking, and beneficiary delivery. | | Stablecoin payment | A specified token moves between supported accounts on a blockchain. | Network and token support, custody, signing, fee funding, delivery evidence, conversion, and recipient access. | [Nacha documents Same Day ACH and scheduled processing](https://www.nacha.org/content/ach-payments-fact-sheet). [Fedwire provides real-time gross settlement](https://www.frbservices.org/financial-services/fedwire-funds-service/). [FedNow operates around the clock through participating institutions](https://www.frbservices.org/financial-services/fednow-service/about-fednow-service/). [SWIFT describes its financial messaging role](https://www.swift.com/about-us/who-we-are/what-swift). These are system capabilities. Your bank or provider sets the access conditions, product limits, pricing, and operating procedures for your account. ## Read settlement timing and netting terms ### Real-time gross settlement and net settlement Real-time gross settlement (RTGS) processes payments individually as they arrive, rather than settling only the difference between amounts owed. For example, the [Federal Reserve describes Fedwire](https://www.frbservices.org/wp-content/uploads/funds.pdf) as processing each payment order individually and, when accepted, settling to the receiving participant's Federal Reserve account in central bank money. In [deferred net settlement](https://www.bis.org/publications/innovations-payments), obligations are combined and the net positions settle at scheduled times. A batch can contain many payment instructions while the settlement system moves a smaller set of net amounts. Check the actual service's funding requirements and completion rules; an application's batch of blockchain calls is a different concept. ### T+0, T+1, and T+2 settlement `T` identifies the transaction or trade date. `T+1` means one business day later; `T+2` means two. A Friday `T+2` settlement normally falls on Tuesday if Monday is a business day. Check the relevant calendar and cutoff before promising a recipient date. The [SEC's explanation of the U.S. securities transition to T+1](https://www.sec.gov/newsroom/press-releases/2024-62) illustrates this convention. Securities settlement cycles are not bank-payout guarantees. `T+0` means same-day settlement, which can still involve a processing window; it does not establish immediate recipient access. ## Match the rail to the payment workflow ACH can fit predictable domestic credits or authorized recurring debits. Sending a credit and collecting a debit require different application and authorization flows. Same Day ACH uses banking-day settlement windows; it is different from an instant payment service. A wire can fit a time-sensitive bank payment when the banks, deadlines, and beneficiary requirements fit. Interbank settlement still needs to be distinguished from credit to the intended customer's account. For an out-of-hours domestic payment, evaluate available instant bank services alongside stablecoins. Confirm whether both accounts can use the service for the payment. Avoid assuming every bank payment stops on weekends. A stablecoin route can fit a recipient that accepts the exact token, or a provider that converts and delivers it. Receiving a dollar-denominated token and receiving local currency in a bank account are different outcomes. ## Compare the same amount and recipient outcome Hold the funding method, source currency, recipient currency, and delivery method constant. Decide whether you are fixing the sender's total budget or the recipient's net amount. | Comparison field | Record for each route | | --- | --- | | Sender funding | Total debit, including charges outside the payment amount. | | Recipient outcome | Net amount, currency, account type, and delivery method. | | FX terms | Executable rate, conversion charges, and quote expiry. | | Delivery | Expected completion and evidence for each payment stage. | | Exceptions | Failed-payment, return, investigation, support, and recovery costs. | | Liquidity | Required balances, replenishment time, and withdrawal access. | For example, if a supplier expects a local-currency bank deposit, compare a bank deposit for every route. A network fee alone cannot establish the lower-cost way to deliver that result. Use the [cross-border payment guide](https://tempo.xyz/developers/docs/resources/guides/cross-border-payments) to document the route. ## Compare services at the same layer A payment service may bundle funding, recipient lookup, currency conversion, account records, support, and delivery. A blockchain network supplies a different part of the flow. Before replacing a service, list the features your application needs: bank or wallet delivery, signing and recovery, identity checks, invoices, recurring collections, accounting records, refunds, and error handling. Establish which component supplies each feature in the proposed route. Do not assume a settlement network provides the complete customer product. Similarly, confirm a payment provider's current account and country support rather than relying on its brand or a general coverage statement. ## Define returns and refunds separately from settlement Settlement finality describes when a system considers a transfer settled. It does not describe every provider policy, customer right, or remedy that may apply to the underlying purchase. For onchain payments, define the successful delivery event and the network's completion rule. Then specify how to handle a mistaken beneficiary, held receipt, refund, or disputed purchase. A refund can require a new payment and separate business approval. For bank payments, follow the applicable return and investigation process. A single “reversible” label can hide differences between the rail, account product, and reason for a return. ## Add a Tempo settlement leg Tempo supports near-instant onchain settlement, [stablecoin network fees](https://tempo.xyz/developers/docs/resources/guides/stablecoin-fees), [fee sponsorship](https://tempo.xyz/developers/docs/guide/payments/sponsor-user-fees), and [payment references](https://tempo.xyz/developers/docs/guide/payments/transfer-memos). These capabilities support the onchain integration; they do not establish bank payout coverage. Start with [sending payments](https://tempo.xyz/developers/docs/guide/payments/send-a-payment) and [verifying received payments](https://tempo.xyz/developers/docs/guide/payments/accept-a-payment). Confirm any funding and delivery providers before offering the route to customers. ## Payment rail questions ### Can stablecoins replace ACH? The choice depends on the payment. ACH supports bank-account credits and debits. Stablecoins provide an onchain option when the asset, recipient, funding, and payout services are supported. Compare the complete workflow for the payment you need to make. ### Is SWIFT a settlement network? SWIFT provides financial messaging between institutions. Banks and providers move and credit the funds. A SWIFT message, interbank settlement, and recipient account credit are separate events. ### Are stablecoin payments always cheaper? No. Obtain quotes for the same funding, conversion, and recipient delivery. A small network fee can be one component of a larger payment cost.