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. The RCH utilizes Wells Fargo Bank N.A. located in San Francisco, Calif., as the central bank to handle settlements and electronic funds transfer on a net/net basis.
Currently three financial settlements are performed by the RCH. Those are the settlement of interline freight revenue using the Interline Settlement System (ISS), car hire for railroad marked equipment utilizing the Car Hire Data Exchange (CHDX) system and switching settlements based on information processed through the Switching Settlement Data Exchange (SSDX).
Interline Settlement System
All railroads participating in ISS are required to participate in the settlements of Interline Freight Revenue through the Railroad Clearinghouse. Settlement of ISS activity occurs on the second business day of the month.
Car Hire Data Exchange
The Car Hire Data Exchange (CHDX) supports the periodic (post-operation) exchange of information to clarify payables and receivables. CHDX is a monthly exchange of time and mileage payment information. Participating carriers submit their car hire payables in the form of 414 transaction sets. Once all submissions have been received, the data is sorted and each participant's car hire receivables are prepared and distributed to the subscriber.
CHDX data is also summarized so that car hire can be settled in the Railroad Clearinghouse. Settlement of the net/net Car Hire positions between participating carriers is accomplished between the 21st and 23rd of each month depending on the monthly calendar.
Switching Settlement Data Exchange
Railroads providing switching services may submit a consolidated monthly billing statement electronically through Switching Settlement Data Exchange (SSDX) instead of sending paper invoices to multiple carriers. SSDX users can submit data through an FTP upload or through an easy-to-use Excel template and web upload interface.
SSDX data is also summarized so that switching settlement obligations may be settled in the Railroad Clearinghouse. Settlement of the net/net switching positions between participating carriers is accomplished between the 26th and 29th of each month depending on the monthly calendar.
Railway Accounting Rules
The Railway Accounting Rules (RAR) encompasses the rules of the Interline Settlement System (ISS) and the Railroad Clearinghouse (RCH). The document contains general and mandatory freight rules, including overcharge and disbursement rules. It also includes arbitration procedures used to settle financial disputes among railroads. There is a section chronicling the history of changes to the rules. Also included are the full Railroad Clearinghouse (RCH) settlement regulations for ISS and the Car Hire Data Exchange (CHDX).
The Railway Accounting Rules (RAR) is maintained by The Revenue Pipeline Task Force (RPTF). Rules are approved by the Interline Revenue Committee (IRC) and the Business Services Working Committee (BSWC).