BB&T has added CHIPS to its payments processing capabilities to execute real-time, large dollar payments in the U.S., according to The Clearing House Payments Company.
CHIPS is a real-time, final payment system used by financial institutions around the world to clear U.S dollar payments totaling $1.3 trillion each day. It features multilateral netting with payment finality – a patented process that maximizes the use of liquidity and whose benefits include a reduction of daylight overdraft charges for banks and the elimination of payment risk for the system. A single dollar in the CHIPS system turns over on average 500 times a day and will be reused many times by the netting process to clear and settle payments throughout the day.
“The efficient use of funds is just one reason BB&T is pleased to add CHIPS for processing wire payments,” says Woody Tyner Senior Vice President of BB&T. “The new IntraNet interface also provides cost-effective access to the system and enables us to leverage CHIPS’s online management tools and B-to-B features.”
On 11 October, The Clearing House announced a special CHIPS’s interface software licensing agreement with IntraNet, Inc., a provider of payment processing solutions. The interface lowers the cost of adding the CHIPS’s module to a bank’s funds transfer platform, eliminating a significant barrier for a bank to join CHIPS.
Hank Farrar, Senior Vice President of The Clearing House Payments Company responsible for CHIPS, says he is pleased that BB&T has added CHIPS to its payments processing capabilities. “Using CHIPS, BB&T will have another option to manage large dollar volume payments in the U.S. in a completely secure, reliable and resilient system,” he says.
The Clearing House Payments Company believes that, with the growing trend to automate business processesand replace paper cheques with electronic payments, CHIPS is well-positioned to help banks provide value-added services to their business customers.
“We invite other financial institutions to leverage the power of the world’s premier, private-sector payments system, particularly since we’ve made it easier and more cost effective to use,” says Farrar.