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:
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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.
Compare in detail →Regulatory Framework
Apr 1, 2026
RBI mandatory two-factor authentication for all digital payments
RBI guidelines published Sep 25, 2025 requiring all domestic digital payments to implement two-factor authentication. Replaces rigid SMS OTP mandate with flexible risk-based approach. At least one factor must be dynamic and unique per transaction. Cross-border CNP additional factor validation required from Oct 1, 2026.
Intelligence (7)
NewsJul 6, 2026
Federal Reserve Study Shows ACH Reached Three-Quarters of US Noncash Payment Value in 2024
ACH transfers claimed a record share of US payment value while credit cards outpaced debit growth for the first time since 2000, according to the Fed's three-yearly review of 2024 transaction data.
AnalysisMar 28, 2026
Eighth Circuit Weighs Regulation II Fate as US Debit Interchange Enters Regulatory Limbo
Three outcomes are possible. The Eighth Circuit could reverse the vacatur, preserving Regulation II and the current cap. It could affirm the vacatur, potentially returning debit interchange fees to pre-2011 levels.
AnalysisMar 27, 2026
ACH Network Processed 35.2 Billion Payments Worth $93 Trillion in 2025 as Same Day ACH Surged 17 Percent
The ACH Network transferred 8.74 billion direct deposits in 2025, covering payroll, Social Security benefits, tax refunds, and retirement distributions.
RegulationMar 21, 2026
Nacha's Two-Phase ACH Fraud Monitoring Mandate Begins, Reshaping Risk Obligations for Originators and Receivers Alike
Financial institutions that originate or receive large volumes of ACH transactions are now required to maintain risk-based fraud detection processes under Nacha Operating Rules amendments that became effective March 20, 2026, with standardized transaction labeling for payroll and purchase entries. Phase 2 arrives June 19, removing all volume thresholds and extending the mandate to every non-consumer originator in the network.
RegulationMar 20, 2026
Nacha Fraud Monitoring Phase 1 Takes Effect, Requiring Risk-Based Screening of ACH Payments
The rule also introduces new Company Entry Description field requirements. Originators must now use the value PAYROLL for all PPD credit entries that pay wages, salaries, or similar compensation, and PURCHASE for e-commerce purchase debits. These standardized descriptors are designed to improve downstream fraud detection by giving receiving institutions clearer
RegulationMar 20, 2026
Nacha Phase 1 ACH Fraud Monitoring Rules Take Effect for Large Originators
The first phase of Nacha's mandatory credit-push fraud monitoring framework goes live today, compelling large ACH originators and receiving institutions to deploy automated transaction screening systems. Phase 2 broadens the requirement to all originators in June 2026.
RegulationMar 19, 2026
Nacha's Fraud Monitoring and Payroll Labeling Rules Take Effect March 20
Beginning March 20, 2026, all large ACH originators must monitor for fraud including a new False Pretenses category, while standardized PAYROLL and PURCHASE labels give receiving banks new tools to detect anomalous patterns. Phase 2 extends coverage to all originators by June 19.
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