Overview
The Clearing House Payments Company L.L.C. (TCH) is the oldest banking association and payments company in the United States, originally founded in 1853 as the New York Clearing House Association. Owned by the largest commercial banks in the country, TCH operates critical payments infrastructure that processes trillions of dollars daily. It is a private-sector counterpart to the Federal Reserve's payment systems.
TCH operates three major payment systems: the Clearing House Interbank Payments System (CHIPS), which is one of the two large-value wire transfer systems in the U.S. (alongside Fedwire) and settles approximately $1.8 trillion daily in domestic and international payments; the RTP (Real-Time Payments) network, launched in 2017 as the first new core U.S. payment rail in over 40 years, enabling instant, irrevocable payments 24/7/365; and the Electronic Payments Network (EPN), one of only two private-sector ACH operators in the United States.
Beyond its infrastructure operations, The Clearing House also functions as a banking industry association, conducting research and advocating on regulatory, legislative, and policy issues affecting the banking industry. Its owner banks include JPMorgan Chase, Bank of America, Citibank, Wells Fargo, and other major U.S. and international financial institutions. TCH's payment systems are supervised by the Federal Reserve under its authority over systemically important financial market utilities (FMUs).
Basic Identity
Field | Value |
|---|---|
Official Name (English) | The Clearing House Payments Company L.L.C. |
Acronym | TCH |
Country | United States |
Jurisdiction Level | Federal |
Official Website | |
Headquarters | New York, New York, United States |
Year Established | 1853 |
Current Status | Active |
Classification
Field | Value |
|---|---|
Entity Type | Infrastructure Operator |
Control Layer | Layer 3 — Market Infrastructure / Utility |
Legal Authority Level | Self-Regulatory |
What This Entity Oversees
Domain | Specific Oversight |
|---|---|
CHIPS (Clearing House Interbank Payments System) | Large-value USD wire transfer system settling approximately $1.8 trillion daily in domestic and cross-border payments |
RTP (Real-Time Payments) Network | 24/7/365 instant payment network enabling irrevocable credit transfers with immediate settlement |
EPN (Electronic Payments Network) | Private-sector ACH operator processing billions of ACH transactions annually |
Payment System Rules | Operating rules and standards for participant institutions on all three payment networks |
Participant Risk Management | Credit, liquidity, and operational risk standards for participating financial institutions |
Banking Industry Policy | Research, advocacy, and policy analysis on issues affecting the banking and payments industry |
Regulatory Powers
Power | Scope & Exercise |
|---|---|
Network Rules | Sets and enforces operating rules, technical standards, and risk management requirements for all participating institutions |
Participant Admission/Removal | Determines eligibility criteria for participation; can suspend or terminate access for rule violations or risk concerns |
Risk Limits | Establishes credit and liquidity limits for CHIPS participants; manages bilateral and multilateral netting arrangements |
Settlement Procedures | Defines settlement timing, finality rules, and contingency procedures for each payment network |
Compliance Monitoring | Monitors participant compliance with network rules and operational standards |
Industry Standards | Develops and promotes payments industry standards and best practices |
Legal Foundation
Element | Details |
|---|---|
Primary Statute | Dodd-Frank Act, Title VIII (Financial Market Utilities) — CHIPS designated as a systemically important FMU; Federal Reserve Act (payment system oversight); Electronic Fund Transfer Act (ACH operations) |
Key Amendments | Expedited Funds Availability Act (1987, check clearing); Clearing House operating rules and by-laws |
Payments and Money Movement Relevance
The Clearing House is one of the most directly relevant entities to payments and money movement in the United States. Its three payment networks collectively process a significant share of all U.S. electronic payments.
CHIPS is the primary clearing and settlement system for large-value international USD payments, including foreign exchange settlements, eurodollar transactions, and correspondent banking flows. It operates alongside Fedwire as one of only two large-value payment systems in the U.S., using multilateral netting to achieve settlement efficiency that reduces the aggregate liquidity needed to settle trillions in daily transactions. The RTP network represents the private-sector real-time payments rail in the U.S., competing and coexisting with the Federal Reserve's FedNow Service launched in 2023. RTP enables instant, final, and irrevocable payments up to $10 million per transaction, available around the clock. EPN is one of only two ACH operators (the other being the Federal Reserve's FedACH), processing payroll, bill payments, business-to-business transactions, and government payments. Together, these systems make TCH a foundational pillar of the U.S. payment infrastructure.
Relationship to Other Regulators
Regulator | Relationship |
|---|---|
Federal Reserve | Primary supervisor of TCH payment systems; CHIPS is designated as a systemically important FMU under Dodd-Frank Title VIII |
Office of the Comptroller of the Currency (OCC) | Regulates many of TCH's owner banks (national banks); TCH payment systems serve OCC-regulated institutions |
Federal Deposit Insurance Corporation (FDIC) | Regulates state non-member banks that participate in TCH payment networks |
Financial Crimes Enforcement Network (FinCEN) | TCH participants must comply with FinCEN's BSA/AML requirements for transactions processed on TCH networks |
Consumer Financial Protection Bureau (CFPB) | Regulates consumer protection aspects of ACH and electronic payments processed through EPN |
Key Public Resources
Resource | Details |
|---|---|
Website | |
Contact Page | |
Headquarters Address | 330 Hudson Street, New York, NY 10013, United States |