Introduction
The Clearing House (TCH) is a US banking association and payments infrastructure operator. Founded in 1853 and headquartered in New York City, it is owned by major commercial banks and operates core payment networks used by financial institutions across the United States. TCH operates infrastructure including CHIPS, RTP, EPN and image exchange services, while its association arm represents large banks on payments and banking policy.
What is The Clearing House and what does it do
The Clearing House combines payment-system operations with banking policy activity. The Clearing House Payments Company L.L.C. operates payment networks and settlement systems, while The Clearing House Association L.L.C. engages on policy and regulatory matters affecting large commercial banks.
TCH is not a regulator. It is a private-sector banking association and payment infrastructure operator whose network rules, technical specifications and operational procedures apply to institutions participating in its systems.
Mission and remit
The Clearing House supports safe, efficient and interoperable payment services in the United States. Its operational remit includes real-time payments, high-value US-dollar clearing and settlement, ACH processing and image exchange services.
Its association remit includes policy engagement on banking, payments, fraud, liquidity, operational resilience, data, financial crime and regulatory issues. This dual role makes TCH important both as an infrastructure operator and as a banking-policy voice.
Core work domains
- Real-time payments infrastructure — Operation of the RTP network for instant payments between participating US financial institutions.
- Large-value USD clearing and settlement — Operation of CHIPS for domestic and international high-value US-dollar payments.
- ACH processing — Operation of EPN, the Electronic Payments Network, as a private-sector ACH network.
- Image exchange and check-related services — SVPCO and image exchange services supporting electronic check processing and settlement.
- Banking and payments policy — Advocacy and analysis on regulation, fraud, payments modernisation and banking policy.
- Network rules and technical specifications — Operational rules, participation requirements and technical standards for TCH-operated payment systems.
- Fraud prevention and risk management — Network governance, fraud controls and risk-management practices tied to payment-system participation.
Geographic scope and cross-border reach
The Clearing House primarily serves the United States and US-dollar payment markets. Its RTP and EPN services are domestic US payment networks, while CHIPS has global importance because it supports domestic and international high-value US-dollar payments.
TCH does not provide market-entry, licensing or passporting services. Its cross-border relevance comes mainly through CHIPS, correspondent banking, US-dollar settlement and the role of TCH owner banks in global finance.
Why The Clearing House matters for payments operators
TCH matters for PSPs, sponsor banks, acquirers, embedded finance providers, payment processors, fintech infrastructure firms, treasury platforms and banking-as-a-service providers operating in the United States. Operators may encounter TCH through sponsor-bank relationships, RTP connectivity, ACH processing, CHIPS settlement, fraud controls, treasury operations or network rules.
For payment operators, RTP is especially relevant for instant payment products, request-for-payment flows, account-to-account transfers, wallet funding and defunding, earned wage access, merchant disbursements and real-time treasury use cases. CHIPS is relevant for high-value US-dollar settlement, correspondent banking and liquidity-efficient wholesale payments.
The teams most likely to follow TCH include product, engineering, integrations, treasury, payment operations, settlement, risk, fraud, compliance, legal, banking partnerships, government affairs and senior leadership teams.
Who runs The Clearing House and how is it organised
The Clearing House is owned by major commercial banks and operates through separate but related association and payments company functions. The Payments Company manages payment networks and infrastructure, while the Association focuses on policy and regulatory advocacy.
Its governance is bank-owned and participant-driven rather than public-sector controlled. Infrastructure participation depends on the specific network, eligibility criteria, technical readiness and contractual obligations.
Ownership and participant categories
TCH’s ecosystem is best described by role in its networks and governance rather than by a fixed named-member table.
| Category | Typical participants |
|---|---|
| Owner banks | Major commercial banks that own and govern The Clearing House |
| RTP participants | Insured US depository institutions connected directly or indirectly to the RTP network |
| CHIPS participants | Banks and financial institutions participating in high-value US-dollar clearing and settlement |
| EPN participants | Financial institutions using TCH’s ACH network for electronic payments |
| Image exchange participants | Institutions using SVPCO and image exchange services |
| Technology and service providers | Processors, core providers, gateways and fintech infrastructure firms supporting connectivity |
| Policy association participants | Member banks contributing to TCH advocacy and banking-policy work |
Working groups and decision rights
TCH develops and maintains network rules, technical specifications, operating procedures and participation requirements through formal governance structures. Technical and operational work may involve member committees, network governance groups, working groups and implementation forums.
Participating institutions must comply with the rules and requirements of the systems they use. Non-bank PSPs and fintechs generally engage through banking partners, processors or technology providers rather than through direct ownership.
What standards and network rules does The Clearing House publish
The Clearing House publishes operating rules, technical specifications, participation requirements, risk controls and implementation materials for its payment systems.
| Rule or framework | Scope | Used by |
|---|---|---|
| RTP Operating Rules | Governance, obligations and operating requirements for instant payments | RTP participants, sponsor banks, processors and fintech partners |
| RTP Technical Specifications | Connectivity, messaging and implementation requirements for real-time payments | Banks, processors, core providers and infrastructure vendors |
| CHIPS Rules and Procedures | Clearing, settlement, liquidity and operational rules for CHIPS | CHIPS participants, treasury teams and correspondent banking teams |
| EPN Operating Rules | ACH processing and private-sector ACH network participation | Banks, ACH operators, processors and payment operations teams |
| Image Exchange and SVPCO procedures | Check image exchange, adjustments and settlement-related services | Banks and image exchange participants |
| Fraud and risk frameworks | Network risk controls, fraud prevention and operational safeguards | Financial institutions, risk teams and payment operations teams |
Adoption and downstream use
TCH rules are not public law, but they are mandatory for institutions participating in TCH-operated systems. They are enforced through participation agreements, operating rules, certification requirements, technical controls and network access conditions.
For PSPs and fintechs, TCH requirements often apply indirectly through sponsor banks or processors. A fintech building on RTP, for example, may not be a direct TCH participant but still needs to design products around RTP rules, irrevocability, message flows, settlement timing and fraud controls.
Events and convenings
The Clearing House participates in payments forums, policy discussions, technical groups and banking events. It also runs The Clearing House Annual Conference, which convenes senior leaders across banking, payments and policy.
For operators, the most important updates are usually network rule changes, RTP service updates, CHIPS developments, EPN announcements, technical documentation and policy positions.
How to engage with The Clearing House
Direct engagement with TCH depends on the payment system and the organisation’s status. Banks and eligible financial institutions may participate directly in RTP, CHIPS, EPN or other TCH services if they meet regulatory, technical, settlement and operational requirements.
Non-bank PSPs, fintechs and payment technology companies usually engage indirectly through sponsor banks, settlement banks, processors, core providers, infrastructure partners, consultations, technical integrations or industry dialogue.
Access routes and eligibility
TCH is not a general open-membership fintech association. Access to its payment systems depends on eligibility, network rules, contractual requirements, technical certification and the role the organisation wants to play.
Companies should confirm requirements through TCH, participating banks or technical providers before planning direct or indirect connectivity to RTP, CHIPS, EPN or image exchange services.
What participants gain
Participants may gain access to real-time payments, high-value USD settlement, ACH processing, image exchange services, network governance, operating rules and payment infrastructure used across the US banking system.
The benefit depends on the rail: RTP supports instant 24/7 payments, CHIPS supports high-value USD settlement, EPN supports ACH processing, and image exchange services support electronic check processing.
FAQ
Is The Clearing House a regulator?
No. The Clearing House is a private-sector banking association and payment infrastructure operator. It sets rules for its own networks, but it does not license, supervise or regulate financial institutions in the way a public authority does.
What is the difference between TCH and the Federal Reserve?
TCH is privately owned by commercial banks, while the Federal Reserve is the US central bank. Both operate important payment infrastructure: TCH operates RTP, CHIPS and EPN, while the Federal Reserve operates systems such as Fedwire, FedACH and FedNow.
What is the RTP network?
The RTP network is TCH’s real-time payment system for instant payments in the United States. It operates 24/7/365, provides immediate funds availability and supports use cases such as account-to-account transfers, bill payment, request for payment, earned wage access and merchant disbursements.
Is RTP the same as FedNow?
No. RTP and FedNow are separate US instant payment systems. RTP is operated by The Clearing House, while FedNow is operated by the Federal Reserve. Both enable instant payments, but they have different operators, rulebooks, connectivity models and participant networks.
What is CHIPS?
CHIPS is TCH’s high-value US-dollar clearing and settlement system. It is used by major domestic and international banks for large-value payments and correspondent banking flows, and it provides liquidity-efficient settlement through payment matching and netting.
What is EPN?
EPN, the Electronic Payments Network, is TCH’s private-sector ACH network. It provides ACH processing services for financial institutions and is one of the two main ACH operators in the United States, alongside the Federal Reserve’s FedACH service.
Can fintechs connect directly to TCH systems?
Some TCH systems are mainly designed for banks and eligible financial institutions. Many fintechs and PSPs access TCH-operated rails indirectly through sponsor banks, processors, core providers or infrastructure partners rather than connecting directly.
Why does TCH matter for PSPs?
TCH matters for PSPs because its networks support key US payment flows, including instant payments, ACH and high-value settlement. PSPs may need to understand TCH rules, message flows, settlement timing and fraud controls when building products through banking partners.
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