FedACH / ACH Network

FedACHACTIVE

Operator: Federal Reserve Banks (FedACH), Nacha (network rules)

Overseer: Board of Governors of the Federal Reserve System

Legal basis: Federal Reserve Act, Nacha Operating Rules, Electronic Fund Transfer Act (EFTA / Regulation E)

Launched: Jan 1, 1972

~141 million transactions

Daily Volume

Jan 1, 2025 · Nacha

~$383 billion

Daily Value

Apr 20, 2026 · Nacha

~10,000 financial institutions

Participants

Jan 1, 2024 · Nacha

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Executive Summary

The ACH Network is the backbone of US retail payment processing, handling over 30 billion transactions annually — payroll, bill payments, government disbursements, and business-to-business payments. FedACH is the Federal Reserve's ACH operator, processing approximately 60% of ACH volume alongside EPN (The Clearing House's ACH operator). Nacha sets the rules. Same-Day ACH, introduced in 2016, provides faster processing with a $1 million per-transaction limit.

How It Works

Settlement Model

Deferred Net Settlement (DNS)

Message Standard

Nacha ACH format (proprietary batch format), with ISO 20022 support for international ACH (IAT)

Max Transaction

$1,000,000 per transaction (Same-Day ACH limit; approved increase to $10,000,000 effective September 17, 2027)

Clearing Mechanism

FedACH (Federal Reserve, ~60% market share) and EPN (The Clearing House, ~40%). Both operators are interoperable.

Settlement Cycle

Multiple daily settlement windows. Standard ACH: next-business-day settlement. Same-Day ACH: three processing windows per day with same-day settlement. Settlement in Federal Reserve balances.

Message Flow

The originator submits ACH entries to their Originating Depository Financial Institution (ODFI). The ODFI batches entries and transmits to FedACH (or EPN). FedACH sorts entries by Receiving Depository Financial Institution (RDFI) and delivers to each RDFI. Net settlement positions are calculated and posted to Federal Reserve accounts. RDFIs process entries to end-customer accounts.

Typical Use Cases

Payroll (Direct Deposit), bill payments, government benefits (Social Security, tax refunds), business-to-business payments, insurance premiums, subscription payments

Key Data

Daily Volume

~141 million transactions

As of Jan 1, 2025 · Nacha

Daily Value

~$383 billion

As of Apr 20, 2026 · Nacha

Participants

~10,000 financial institutions

As of Jan 1, 2024 · Nacha

Participants & Access

Membership Requirements

Participation open to all federally insured financial institutions through their Federal Reserve account (for FedACH) or EPN membership. Third-party processors may originate on behalf of institutions.

Governance & Risk

Governance Model

Nacha is the self-regulatory organisation setting ACH rules. The Federal Reserve and EPN operate the infrastructure. Nacha membership includes over 10,000 financial institutions. Rule changes follow a public comment process.

Concentration Risk

Low — two operators (FedACH and EPN) provide competitive redundancy. Near-universal participation among US financial institutions. However, ACH is critical infrastructure — disruption would affect payroll, government payments, and bill processing for hundreds of millions of Americans.

Resilience & Business Continuity

Dual-operator model provides systemic resilience. FedACH leverages Federal Reserve infrastructure. Settlement in central bank money eliminates counterparty risk. Same-Day ACH provides faster processing alternative.

Dispute Resolution

Nacha Operating Rules govern returns, disputes, and unauthorised transactions. Regulation E (EFTA) provides consumer protections for electronic fund transfers. 60-day return window for unauthorised consumer debits.

Pricing

FedACH pricing per item with volume-based tier discounts. Same-Day ACH carries an additional fee.

Transaction fee: $0.0023 per item (FedACH forward, high volume tier)

Source: Federal Reserve

Connectivity

settles via

Fedwire

ACH net settlement positions are posted to Federal Reserve accounts (same infrastructure as Fedwire)

complementary to

FedNow

FedNow provides instant alternative for payments that previously used Same-Day ACH

Peer Comparison

FedACH/ACH is comparable to Bacs (UK) and SEPA SCT (Europe) as a batch credit transfer and direct debit system. ACH is unique in its dual-operator model (FedACH + EPN). Same-Day ACH provides faster processing than traditional batch, approaching (but not matching) instant payment speeds. ACH Direct Debit is the US equivalent of SEPA SDD and Bacs Direct Debit.

BACS

ACH · United Kingdom · Pay.UK

SEPA SCT

ACH · Eurozone · EPC / CSMs

Compare in detail →

Regulatory Framework

16dOct 23, 2026

Nacha: comments close on redefining "Banking Day" in the Nacha Operating Rules

Nacha requests comment on revising the defined term "Banking Day" in the Nacha Operating Rules to a calendar day other than a Saturday, Sunday or Federal banking holiday. Comments are due 23 October 2026; the proposed effective date is 18 June 2027.

44dNov 20, 2026

Nacha: responses due on requiring secure electronic channels for ACH exception processing

Nacha requests information on the use of secure, electronic communication channels for ACH exception processing between participants. Responses are due 20 November 2026.

Timeline

Stored date May 31, 2027; precision not reviewed

FedACH / Nacha maintenance: Memorial Day holiday — processing suspended maintenance window recorded

Memorial Day holiday — processing suspended — 2027-05-31 00:00–23:59 America/New_York (full outage). Recorded by ClearingPost on 2026-09-17.