The Railroad Clearinghouse (RCH) is a centralized process for administering and transferring funds among railroads. Railinc serves as the RCH administrator as authorized by the Association of American Railroads governed by the Railroad Clearinghouse Settlement Regulations within the Railway Accounting Rules (RAR) found here: public.railinc.com/sites/default/files/documents/RAR.pdf . For more information and links, refer to the Railroad Clearinghouse product page on Railinc.com. https://public.railinc.com/products-services/railroad-clearinghouse .
The RCH process uses a central bank to handle settlements through Electronic Funds Transfer (EFT) on a net/net basis. Participants (debtors) who owe RCH send wires or ACH payments, and or RCH wires funds to the creditors of the settlement process. Through these processes, railroad participants can exchange funds to settle Interline waybills, monthly Car Hire, Switching Settlement, Multi Level Pool Billing and End of Train Device on a net/net basis.
Interline Settlement System (ISS)
All railroads that participate in ISS are required to participate in RCH, which settles in Canadian dollars, US Dollars, and Mexican Pesos. ISS determines the how much one railroad owes to other roads as a result of interline settlements. Based on ISS timing rules, records are settled each day. The settlement records contain a funds transfer date on which monies are scheduled to be transferred from debtor railroads to creditor railroads. These daily records are accumulated for a monthly funds transfer on a railroad-to-railroad basis.
ISS Clearinghouse participants can retrieve the Funds Transfer Reports showing their net/net position with other railroads in RCH on the first business day of the month by 10:00 AM EST. On the second business day, debtor railroads wire funds to the Clearinghouse Bank (by 11:30 AM EST) and the RCH Administrator releases the wires to fund the creditor accounts between 2:00 PM and 5:30 PM on the Funds Transfer date (depending on the timing of receipt of incoming wire transfers). Debtors pay in a single lump sum and creditors receive their funds in a single lump sum.
Car Hire Data Exchange (CHDX)
RCH manages a settlement process for Railroad Car Hire. The RCH system determines how much one railroad owes to other roads as a result of information received from the Car Hire Data Exchange (CHDX) system. Based on Car Hire timing rules, records are settled monthly and are accumulated for a monthly funds transfer on a railroad-to-railroad basis.
CHDX Clearinghouse participants can retrieve the Funds Transfer Reports indicating their net/net
position with other railroads in RCH on the date specified in the CHDX-RCH Schedule. The net/net reports are made available no later than one day prior to the Funds Transfer date, but normally 6-8 business days after the Outgoing Distribution (CHOP) files are sent. On the Funds Transfer Date, debtor railroads send money by wire or ACH to RCH (by 11:30 AM EST) and the RCH Administrators authorize the Bank to release funds to creditor accounts between 2:00 PM and 5:30 PM on the Funds Transfer date (depending on the timing of receipt of incoming wire transfers). Debtors pay in a single lump sum and creditors receive their funds in a single lump sum.
Switching Settlement Data Exchange (SSDX)
RCH provides settlement services for Switching Settlements and determines the amount one railroad owes to other roads as a result of information received from the Switching Settlement Data Exchange (SSDX) system. Based on Switching Settlement timing rules, records are settled monthly. These records are accumulated for a monthly funds transfer on a railroad-to-railroad basis.
SSDX Clearinghouse participants can retrieve the Funds Transfer Reports indicating their net/net position with other railroads in RCH on the date specified in the SSDX-RCH Schedule. This date fluctuates but the net/net reports are made available no later than one day prior to the Funds Transfer date, but generally the next day after the outbound files are distributed from SSDX. On the Funds Transfer Date, debtor railroads wire funds to the Clearinghouse Bank by 11:30 AM EST and the RCH Administrators authorize the Bank to release funds to creditor accounts (between 2:00 PM and 5:30 PM on the Funds Transfer date depending on the timing of receipt of incoming wire transfers). Debtors pay in a single lump sum and creditors receive their funds in a single lump sum.
Multi Level Pool Billing Data Exchange (MLPB)
The Multi Level Pool Billing (MLPB) Data Exchange distributes data to pool participants per the schedule published by Railinc. Pool participants receive an email with the MLPB Accounts Payable Data Exchange Report and MLPB Net Billing Data Exchange Report, and notification that the file is available to download. Pool participants are responsible for downloading their respective files from the FTP mailbox within 14 days of the Data Exchange Process run as specified by the Data Exchange schedule.
MLPB Clearinghouse participants can retrieve the Funds Transfer Reports indicating their net/net position with other railroads in RCH on the date specified in the MLPB-RCH Schedule . This date fluctuates but the net/net reports are made available no later than one day prior to the Funds Transfer date, but generally the next day after the outbound files are distributed from MLPB. On the Funds Transfer Date ), debtor railroads wire funds to the Clearinghouse Bank by 11:30 AM EST and the RCH Administrators authorize the Bank to release funds to creditor accounts (between 2:00 PM and 5:30 PM on the Funds Transfer date depending on the timing of receipt of incoming wire transfers). Debtors pay in a single lump sum and creditors receive their funds in a single lump sum.
End of Train Device (EOTD)
The End of Train Device (EOTD) process distributes data to participants per the schedule published by Railinc. Participants receive an email notifying them that the EOTD funds transfer reports are ready to download from RCH Web. These reports are provided the day after the EOTD outbound files are distributed to the participants, and the settlement date is 5-7 business days later. These dates are provided in a calendar annually to participants.