The automated clearinghouse (ACH) system is a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers. The direct deposit of payroll, social security benefits, and tax refunds are typical examples of ACH credit transfers. The direct debiting of mortgages and utility bills are typical examples of ACH debit transfers. While the ACH network was originally used to process mostly recurring payments, the network is today being used extensively to process one-time debit transfers, such as converted check payments and payments made over the telephone and Internet.

The Reserve Banks and Electronic Payments Network (EPN) are the two national ACH operators. As an ACH operator, the Reserve Banks receive files of ACH payments from originating depository financial institutions, edit and sort the payments, deliver the payments to receiving depository financial institutions, and settle the payments by crediting and debiting the depository financial institutions' settlement accounts. The Reserve Banks and EPN rely on each other to process interoperator ACH payments--that is, payments in which the originating depository financial institution and the receiving depository financial institution are served by different operators. These interoperator payments are settled by the Reserve Banks.

ACH transactions: Facts and Statistics (on the web site of NACHA)

Report to the Congress on the Use of the Automated Clearinghouse System for Remittance Transfers to Foreign Countries
2015 Report (PDF) | 2013 Report (PDF) | 2011 Report (PDF)

The Board has approved enhancements to the Reserve Banks' same-day ACH service to align the service with NACHA's ACH operating rules.

The Board and Reserve Banks provided comment on NACHA's (The Electronic Payments Association) request for comment to amend its operating rules to include same-day processing for most ACH payments.

Further information on the FedACH® service

Back to Top
Last Update: May 16, 2016