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Frequently Asked Questions

  • Tokens are a replacement for existing RT (routing transit) and account numbers. For businesses that use DDA (demand deposit account, a.k.a. checking account) account numbers for payment processing, there are several benefits created by replacing regular DDA account numbers with tokens:

    • Tokens provide advantages that are good for a business’s customers, and as a result, the business itself. The customer (account holder) benefits from a separation between their real account information and the token that can be shared with billers, disbursers and other entities that store their account information on file. If any of the locations that hold the token are hacked and the token is stolen, the account holding financial institution can replace the token without impact to the real account.
    • Entities that store DDA account numbers-on-file benefit from tokens because they can lower their risk from a hack or breach. Tokens may lower consumer impact from stolen account data which can help with brand reputation after a negative event. Additionally, using tokens for DDA accounts provides protections on par with the tokens used to protect card transactions and can be part of a comprehensive risk practice.
    • Tokens can also help address some types of fraud. Most notably, tokens stolen during a breach can be turned off, and once de-activated cannot be used for fraudulent transactions. When used in the RTP Network, Tokens may also have additional controls (such as counterparty restrictions) that can help to prevent fraud by validating that a token is only used by the party that it was issued to. 
  • TCH offers DDA Tokens that operate on the RTP and EPN/ACH networks. Each token is issued under a bank specific RT and can be used in ACH entries originated by any ODFI through either EPN or FedACH. ACH/EPN tokenization is projected to launch 3Q2022.

  • TCH offers token services directly to financial institution Participants in either the RTP or EPN networks. For banks who are already participants of these networks and would like to use tokens, please contact either Jarrett Helms or Brice Ackerman in our token product group at  jarrett.helms@theclearinghouse.org or brice.ackerman@theclearinghouse.org.

    For non-bank entities wanting to use tokens, we encourage you to request the service from your primary bank. 

  • What are the options for using tokens in my offerings? TCH offers several ways for participant banks to use tokens. These options range from a very simple method that does not require technology integration, to full feature APIs that enable banks to request and distribute tokens as a part of their own product offering. We will discuss all available token methodologies with interested financial institutions and find a token solution that is the right fit.
  • Tokens can transact on the RTP network beginning February 1st, 2022. DDA Tokens will be accepted on the EPN network in the summer of 2022.
  • TCH will not charge fees for the DDA Tokens TCH issues. TCH believes tokens are an important feature of safe and sound payment networks and is making our service available at no charge.