Payment types

The following table describes the different types of individual payments that Ripple can process:

Transfer type
 Description
Bank account to bank account Transfer from the originator’s account to the beneficiary’s account, where the final receiving institution is the same as the beneficiary’s institution.
Bank account to bank account transfer (third-party account) Transfer from the originator’s account to the beneficiary’s account at a third-party institution, where the receiving institution and beneficiary’s institution are different.

Third-party account transfers with the receiving institution use local clearing rails to forward the payment to the beneficiary’s institution:
  • Automated clearing house network (ACH)
  • Real-time gross settlement system (RTGS)
  • Faster payments service (FPS)
Bank account to cash Transfer from the originator’s account to the beneficiary, who collects physical cash at the receiving institution.
  • The beneficiary of the payment arrives at the branch and provides the branch agent details of the transaction, including the transaction reference.
  • The branch agent looks up the details of the transaction reference and asks the beneficiary to provide proof of identity.
  • The beneficiary provides the proof of identity to the agent. If it matches the details in the system, the agent pays out the cash.
Bank account to wallet Transfer from the originator’s account to the beneficiary, who receives money in their wallet. The money is credited to the beneficiary's wallet accounts in the form of digital representation.
Wallet to wallet Transfer funds from the originator's wallet to the beneficiary's wallet.
Cash to bank account The originator, using a branch, kiosk, or ATM, initiates a transfer in cash to the beneficiary, who receives money in their bank account. The beneficiary account can be at the receiving institution or a third-party institution.

Payout Mechanisms
  • Book transfer, if the beneficiary account is at the receiving institution.
  • Third-party account transfer with the receiving institution using local clearing rails (ACH, RTGS, or FPS) to forward the payment to the beneficiary’s institution.
Bank account to card Transfer from the originator’s account to a card (for example a remittance card) owned by the beneficiary. These cards are usually Visa or MasterCard cards and are a way of receiving money by the beneficiary, allowing the beneficiary to withdraw cash at any ATM and make payments at merchant establishments. The receiving and beneficiary institutions can be the same or different depending on who issues the card: the receiving Institution or another institution.