Which financial entity maintains the Automated Clearing House (ACH)?

The Automated Clearing House (ACH) is a network that facilitates electronic money transfers and automated payments. It is primarily maintained and operated by the Federal Reserve system along with approved operators within the ACH framework. The Federal Reserve serves as the main clearinghouse for ACH transactions, ensuring that the electronic transfer of funds between participating banks and financial institutions occurs efficiently and securely. Approved operators, which may include various financial entities that meet regulatory standards, also play a role in processing these transactions.

Commercial banks, credit unions, and private payment processors are integral players in the execution of ACH transactions, but they do not maintain the ACH itself. Instead, these entities are typically users of the ACH network, sending and receiving payments rather than overseeing its infrastructure and operational protocols. The Federal Reserve, through its established regulations and systems, provides the backbone necessary for the ACH to function properly across the financial landscape.