Ripple Payments Direct supports three funding methods, each of which determines how and when your account is funded when you make payments. Your funding method is established by Ripple during onboarding and applies to all payments made from your account.
| Funding method | Description | Account balance displayed |
|---|---|---|
| Pre-funding | You deposit fiat or crypto assets into a Ripple-managed account before initiating payments. Your available balance decreases as payments are processed. | Yes |
| Credit funding | Ripple extends credit and sends an invoice after each payment is executed. Invoices are issued on the next business day. | No |
| JIT funding | You wire the exact funds required for each payment after initiating it. The payment waits in an AWAITING_FUNDING state until the wire is received. | No |
Also referred to as funded payments, pre-funding requires you to deposit fiat or crypto assets into a Ripple-managed account before initiating payments. As you make payments, the amount is drawn from your available balance. You can monitor your balance from the Account balance widget on the Home page.
Ripple provides deposit instructions specific to your account and currency. The instructions vary depending on whether you are depositing fiat or crypto:
- Fiat currencies: Use the provided bank account details to initiate a domestic transfer or international wire transfer. Fiat deposits are processed during standard banking hours, and your balance updates once the funds have been received and processed.
- Crypto currencies: Transfer assets to the Ripple wallet address assigned to your account. Crypto deposits can be sent at any time, and your balance updates once the deposit is confirmed on the blockchain network, which typically takes several minutes.
Fiat deposit amounts must be specified to no more than two decimal places.
For instructions on how to deposit funds, see Deposit funds.
If you have prefunded assets that you no longer need, you can request to withdraw them back to your registered bank account or crypto wallet. For more information about how withdrawals work, see Withdrawals. For step-by-step instructions, see Withdraw funds.
Also referred to as T+1 invoicing, credit funding allows you to make payments without prefunding. Ripple extends credit and invoices you after your payments are executed. An invoice is generated on the next business day following payment execution and is payable via bank transfer or stablecoin.
You can view and download your invoices from the Reports page in the Ripple Payments UI. For more information, see Reports.
Also referred to as just-in-time funding, JIT funding requires you to send the exact funds needed for a specific payment after you initiate it. After the payment is created, it enters an AWAITING_FUNDING state while Ripple waits to receive the funds. Once the funds arrive, the payment proceeds automatically.
Payments in the AWAITING_FUNDING state expire if funding is not received within the required timeframe. Contact your Ripple representative for details about the funding window for your account.