The U.S. payments system is the largest in the world. Each year billions of transactions, valued in the trillions of dollars, are conducted between payors (purchasers of goods, services, or financial assets) and payees (sellers of goods, services, or financial assets). Based on the mandates of Congress, the Federal Reserve is an active intermediary in clearing and settling interbank payments. The Federal Reserve Banks play this role because they maintain reserve or clearing accounts for the majority of depository institutions. As a result, they can settle payment transactions efficiently by debiting the accounts of the depository institutions making payments and by crediting the accounts of depository institutions receiving payments.

The Payments System Risk staff of Cleveland supports the oversight of Fourth District institution's account activity in the following ways: