The Clearing House Payments Company L.L.C. (PayCo) is a U.S.-based limited liability company formed by

Clearing House Association The Clearing House is a banking association and payments company owned by the largest commercial banks in the United States. The Clearing House is the parent organization of The Clearing House Payments Company L.L.C., which owns and operates core ...

. PayCo is a private sector,

payment system A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, instruments, people, rules, procedures, standards, and technologies that make its exchange possible.Bia ...

infrastructure that operates an electronic check clearing and settlement system (SVPCO), a

clearing house Clearing house or Clearinghouse may refer to: Banking and finance * Clearing house (finance) * Automated clearing house * ACH Network, an electronic network for financial transactions in the U.S. * Bankers' clearing house * Cheque clearing * Cl ...

, and a wholesale funds transfer system (CHIPS).

Governance

and The Clearing House Payments Company LLC conduct business under the name The Clearing House. The Clearing House is the oldest banking association and payments company in the United States. The Clearing House governance model includes a supervisory board and two managing boards, one for the Payments Company and one for the Association. The businesses and affairs of PayCo and the Association are managed by the Supervisory Board. The managing boards of PayCo and the Association have responsibility for the oversight of their respective businesses and financial performance and for the establishment of their agendas.

Member banks

Banco Santander Banco Santander, S.A., doing business as Santander Group (, , Spanish: ), is a Spanish multinational financial services company based in Madrid and Santander in Spain. Additionally, Santander maintains a presence in all global financial centr ...

Bank of America The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...

The Bank of New York Mellon The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is an American investment banking services holding company headquartered in New York City. BNY Mellon was formed from the merger of The Bank of New York and the Mellon Financ ...

MUFG Union Bank MUFG Union Bank (stylized as UnionBank), is a nationally chartered full-service bank with 398 branches in California, Washington and Oregon which was wholly owned by MUFG Americas Holdings and has been acquired by U.S. Bancorp. Formerly known ...

BB&T BB&T Corporation (previously known as the Branch Banking and Trust Company) was one of the largest banking and financial services firms in the United States, based in Winston-Salem, North Carolina. In 2019, BB&T announced its intentions to merge ...

Capital One Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States. It is on the li ...

Citibank Citibank, N. A. (N. A. stands for " National Association") is the primary U.S. banking subsidiary of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City ...

* Comerica *

Deutsche Bank Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Sto ...

* HSBC *

JPMorgan Chase JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...

KeyBank KeyBank, the primary subsidiary of KeyCorp, is a regional bank headquartered in Cleveland, Ohio, and is the only major bank based in Cleveland. KeyBank is one of the largest banks in the United States. Key's customer base spans retail, small b ...

PNC Financial Services The PNC Financial Services Group, Inc. (stylized as PNC) is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 27 U.S. state, states and the D ...

Citizens Financial Group Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsyl ...

* Regions Financial Corporation *

UBS UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...

* U.S. Bancorp *

Wells Fargo Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and intern ...

Payments Company shared board seat

* City National *

Fifth Third Bank Fifth Third Bank (5/3 Bank), the principal subsidiary of Fifth Third Bancorp is an American bank holding company headquartered in Cincinnati, Ohio. Fifth Third is one of the largest consumer banks in the Midwestern United States, Fifth Third ...

* First Citizens * M&T

PayCo services

Clearing House Interbank Payments System

The

Clearing House Interbank Payments System The Clearing House Interbank Payments System (CHIPS) is a United States private clearing house for large-value transactions. By 2015, it was settling well over US$1.5 trillion a day in around 250,000 interbank payments in cross border and domestic ...

(CHIPS) is a bank owned automated funds-transfer system for domestic and international high value payment transactions in U.S. dollars. It is a real-time final settlement payment system that continuously matches, off-sets and settles payments among international and domestic banks. CHIPS provides real-time, immediate and final settlement of payment messages continuously throughout the day similar to Fedwire. During the business day, system participants can send their payments to CHIPS. Funds are released by available funds on hand (no overdrafts are permitted) or through offsetting. A “balance release algorithm” continuously searches the queue of unreleased payments and uses this patented off-setting algorithm to match and release payments. CHIPS’ ability to perform real-time bilateral and multi-lateral off-setting means that very large payments can be released earlier in the day, and that participants realize greater liquidity efficiency savings than those possible in pure RTGS systems. With real-time off-setting, the system continuously offsets payments between two or more CHIPS participants. A payment is considered final and irrevocable at the instant CHIPS releases it. Since CHIPS’ inception The Clearing House management has implemented a number of credit, systemic and liquidity risk reduction measures to better manage individual participant risk, eliminate daylight overdraft exposure, and virtually eliminate systemic risk.

Electronic Payments Network

Electronic Payments Network (EPN) is an automated

(ACH), i.e. a computerized, batch-processing funds-transfer system that processes domestic consumer and commercial financial transactions among depository institutions. Rather than sending each payment separately, ACH transactions are accumulated and sorted by destination for transmission during a predetermined time period. The Automated Clearing Exchange System (ACES) is the core computerized system for EPN processing of payments between account holders at depository financial institutions. EPN serves approximately 450 processing customers. EPN participants include Depository Financial Institutions (DFI) throughout the United States and its territories as part of a nationwide network for domestic commercial banks, thrifts, credit unions and agencies of foreign institutions.

SVPCO

SVPCO is The Clearing House's line of business that operates CHECCS, which is a computerized settlement system. ''SVPCO Online Adjustments'' provides a secure online database to automate cash letter adjustments. ''SVPCO Online Settlement'' is integrated with the SVPCO Image Payments Network and provides automated settlement for cash letter activity. It also works in tandem with SVPCO Online Adjustments, which allows institutions to reconcile adjustments the same day by eliminating the need for paper forms and attachments.

Check exchanges

The New York Clearing House Association was organized at the Bank Officers meeting on October 4, 1853. There were fifty-seven banks in New York City in 1853. Fifty-two became members of the Association. The first check exchanges at The Clearing House were held on October 11, 1853. The Clearing House does not exchange physical checks any longer. The original check exchanges have evolved into a new computerized check settlement system operated by SVPCO called the Clearing House Electronic Check Clearing System (CHECCS).

References

{{DEFAULTSORT:Clearing House Payments Company, LLC Banking in the United States Lobbying organizations in the United States