Electronic Payments Network
EPNACTIVEOperator: The Clearing House (TCH)
Overseer: Board of Governors of the Federal Reserve System
Legal basis: NACHA Operating Rules; The Clearing House operates EPN under Federal Reserve oversight as a private-sector ACH operator
Launched: Jan 1, 1972
Quick reference: View technical card →
Executive Summary
The Electronic Payments Network (EPN) is the only private-sector ACH operator in the United States, operated by The Clearing House alongside the Federal Reserve's FedACH. EPN processes approximately 60% of all commercial ACH volume, handling billions of transactions annually including direct deposits, bill payments, and business-to-business transfers. Together with FedACH, EPN forms the dual-operator structure of the US ACH system governed by NACHA rules.
How It Works
Settlement Model
Deferred net settlement through the Federal Reserve. EPN calculates net positions for participants and submits settlement entries to the Federal Reserve for final settlement in central bank money via Fedwire.
Message Standard
NACHA ACH file format (fixed-length record format). ISO 20022 mapping available for cross-border transactions.
Max Transaction
$1,000,000 per Same-Day ACH entry (effective March 2022); no formal limit for standard next-day ACH
Clearing Mechanism
Multilateral net settlement — EPN nets all participant obligations across the processing window and submits a single net settlement figure per participant to the Federal Reserve.
Settlement Cycle
Multiple settlement windows throughout the business day. Standard ACH settles next business day; Same-Day ACH settles in three windows (10:00 AM, 2:45 PM, 4:45 PM ET). Weekend and holiday processing available for certain transaction types.
Message Flow
The originating depository financial institution (ODFI) batches ACH entries and transmits them to EPN. EPN sorts, validates, and distributes entries to the receiving depository financial institutions (RDFIs). Net settlement positions are calculated and submitted to the Federal Reserve for settlement through Fedwire.
Typical Use Cases
Payroll direct deposit, recurring bill payments, corporate cash management, government benefit payments, B2B payments, account-to-account transfers
Key Data
Participants & Access
Membership Requirements
Open to federally insured depository institutions. Participants must execute EPN participation agreements with The Clearing House, comply with NACHA Operating Rules, and meet TCH eligibility requirements. Third-party sender and processor access available.
Governance & Risk
Governance Model
Operated by The Clearing House, owned by 22 major US banks. Governed by NACHA Operating Rules, which apply uniformly to both EPN and FedACH. Subject to Federal Reserve oversight. NACHA sets rules, EPN and FedACH operate as processors.
Concentration Risk
Moderate. EPN and FedACH together form a dual-operator structure, providing redundancy. However, EPN's dominant market share means disruption would significantly affect US ACH processing. Settlement in central bank money via Fedwire mitigates credit risk.
Resilience & Business Continuity
The Clearing House maintains redundant data centers and business continuity arrangements. The dual-operator ACH structure (EPN + FedACH) provides systemic resilience — if one operator is disrupted, traffic can shift to the other.
Dispute Resolution
Governed by NACHA Operating Rules. ACH returns and disputes follow defined return reason codes and timeframes (e.g., 2 business days for unauthorized consumer debits, 60 calendar days for consumer notification). Bilateral dispute resolution between ODFIs and RDFIs.
Pricing
EPN pricing is based on per-item fees for originated and received transactions. Pricing details are negotiated with participants.
Transaction fee: Data not publicly disclosed by operator
Source: The Clearing House
Connectivity
settles via
Fedwire
EPN net settlement positions are settled through Fedwire in central bank money at the Federal Reserve
Peer Comparison
EPN and FedACH are the two ACH operators in the US, both governed by NACHA rules. They process interchangeable transactions — an entry originated through EPN can be received by a FedACH participant and vice versa. EPN handles roughly 60% of commercial ACH volume. The key distinction is ownership: EPN is private-sector (The Clearing House), while FedACH is operated by the Federal Reserve.
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