EFT vs RTC vs PayShap vs RTGS: What Is the Difference?

South Africa has several interbank payment rails, and each one makes a different trade-off between speed, cost and transaction size. Choosing the right rail matters: paying a supplier by ordinary EFT on a Friday afternoon can mean the money only reflects on Tuesday, while the same payment over PayShap or RTC arrives in seconds at a higher fee.

This page compares the four rails you will encounter most often: batch EFT, Real-Time Clearing (RTC), PayShap and RTGS. All four ultimately settle between banks through the national payment system — see the South African national payment system for the bigger picture.

How do the four rails compare?

Exact fees and limits differ by bank and change over time, so always confirm with your own bank rather than relying on published figures.

When should you use ordinary EFT?

Use EFT credit payments when cost matters more than speed: bulk payouts, salary runs, supplier payments on agreed terms and any payment where a one to two day clearing window is acceptable. Batch EFT is by far the cheapest way to move money between banks, but you must plan around cut-off times and value dates.

When should you use RTC?

Use Real-Time Clearing when a specific payment must reflect at another bank within about 60 seconds — releasing a vehicle, settling a property-related payment, or paying a supplier who will not release stock without cleared funds. Banks charge a premium for RTC and apply their own per-transaction limits.

When should you use PayShap?

Use PayShap for low-value payments that need to be instant, especially where you only have the recipient's cellphone number rather than their account details. PayShap runs around the clock, clears in seconds and supports Request to Pay, which lets a business request an instant payment from a customer.

When should you use RTGS?

RTGS payments settle individually and immediately across accounts at the South African Reserve Bank through SAMOS. In practice, RTGS is used for high-value corporate transactions and for the interbank settlement that sits behind the retail rails. Most businesses never initiate an RTGS payment directly; their bank does so on their behalf when the value justifies it.

Which rail should a business default to?

A practical rule of thumb:

• Bulk and scheduled payments: batch EFT.
• Urgent one-off payments: RTC or PayShap, depending on value and whether the amount fits within PayShap's bank-dependent limits.
• Collections from customers: consider debit orders instead, since transfers depend on the customer remembering to pay.
• Very high values: ask your bank about RTGS.

Remember that instant payments cannot be recalled — see final and irrevocable payments before choosing a real-time rail for large amounts.

Back to the Bank Transfers, Payouts and PayShap hub.