Exclusion of ACH leaves payment account “an incomplete solution” for payment-focused firms seeking direct access to the U.S. payments system
WASHINGTON, D.C. – The Financial Technology Association (FTA) today submitted a comment letter to the Federal Reserve Board urging it to include access to the Federal Reserve’s Automated Clearing House (FedACH) network in its Payment Account framework. Without ACH access, the new account type would fail to deliver on its promise of modernizing access to the nation’s core payment infrastructure and enabling faster, more affordable payments.
“We have a generational opportunity to modernize our payment system and now is the time to get it right by including the ACH payment rail in this payment account,” said Penny Lee, President and CEO of the Financial Technology Association. “In today’s world, American consumers and businesses need access to faster, cheaper, and more competitive payments for their everyday needs. We look forward to continued engagement with the Board to refine this proposal and ensure it achieves its intended effects.”
FedACH processed $104.06 trillion in payments in 2024, and now accounts for 74 percent of the value of U.S. noncash payments. ACH rails power everyday transactions such as payroll, household bills, recurring subscriptions, tax refunds, and more. Without access to the network, Payment Account holders would remain dependent on intermediary banks, limiting the efficiency gains direct access is meant to provide. Lack of access would also reinforce concentration in ACH origination, as two banks currently handle roughly half of all U.S. ACH transactions.
Rather than categorically excluding FedACH, FTA recommended the Board pursue calibrated, risk-based alternatives, including:
- ACH credit-only participation as a transitional step that unlocks use cases like payroll and B2B payments without the overdraft risk associated with ACH Debits;
- Enhanced prefunding and real-time balance verification requirements tailored to Payment Account holders;
- Collaboration with NACHA to develop limited-purpose participation models and specialized operational safeguards, while leveraging existing industry governance and risk-monitoring frameworks; and
- A phased, milestone-driven rollout that expands access as institutions demonstrate operational maturity.
FTA credited the Board with adopting several recommendations raised in its February 2026 comment letter, including a predictable 90-day application review timeline and a payment-volume-based balance framework in place of the original prototype’s balance cap. But FTA argued that the continued exclusion of FedACH undercuts the initiative’s core objectives.
Additionally, as all depository institutions are eligible for full Master Accounts under the Federal Reserve Act, the Board should ensure the new Payment Account remains an optional, streamlined pathway rather than a narrower substitute for Tier 2 or Tier 3 banks.
FTA’s full comment letter is available here. Read Payments Modernization Explained to learn more.
ABOUT US
The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity.
FTA Urges Federal Reserve to Include ACH Access in New Payment Account Framework
Exclusion of ACH leaves payment account “an incomplete solution” for payment-focused firms seeking direct access to the U.S. payments system
WASHINGTON, D.C. – The Financial Technology Association (FTA) today submitted a comment letter to the Federal Reserve Board urging it to include access to the Federal Reserve’s Automated Clearing House (FedACH) network in its Payment Account framework. Without ACH access, the new account type would fail to deliver on its promise of modernizing access to the nation’s core payment infrastructure and enabling faster, more affordable payments.
“We have a generational opportunity to modernize our payment system and now is the time to get it right by including the ACH payment rail in this payment account,” said Penny Lee, President and CEO of the Financial Technology Association. “In today’s world, American consumers and businesses need access to faster, cheaper, and more competitive payments for their everyday needs. We look forward to continued engagement with the Board to refine this proposal and ensure it achieves its intended effects.”
FedACH processed $104.06 trillion in payments in 2024, and now accounts for 74 percent of the value of U.S. noncash payments. ACH rails power everyday transactions such as payroll, household bills, recurring subscriptions, tax refunds, and more. Without access to the network, Payment Account holders would remain dependent on intermediary banks, limiting the efficiency gains direct access is meant to provide. Lack of access would also reinforce concentration in ACH origination, as two banks currently handle roughly half of all U.S. ACH transactions.
Rather than categorically excluding FedACH, FTA recommended the Board pursue calibrated, risk-based alternatives, including:
FTA credited the Board with adopting several recommendations raised in its February 2026 comment letter, including a predictable 90-day application review timeline and a payment-volume-based balance framework in place of the original prototype’s balance cap. But FTA argued that the continued exclusion of FedACH undercuts the initiative’s core objectives.
Additionally, as all depository institutions are eligible for full Master Accounts under the Federal Reserve Act, the Board should ensure the new Payment Account remains an optional, streamlined pathway rather than a narrower substitute for Tier 2 or Tier 3 banks.
FTA’s full comment letter is available here. Read Payments Modernization Explained to learn more.
ABOUT US
The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity.