Clearing House Interbank Payments System (CHIPS) implemented several Internet-based enhancements to provide easy access to the system, Internet-based management reporting, and further improvements to the efficiency of the clearing process.
The first web-based application is Supplemental Funding, which allows participants to fund and prioritize selected payments for immediate clearing. CHIPS is a multilateral netting system with finality, which is accomplished by matching payments between two or more participants that are then cleared and settled in real time. With Supplemental Funding, Banks can control this process through their PC’s web browser screens.
CHIPS has also implemented online management reports, which up until now have been available only on custom-programmed terminal interfaces. Financial institutions can use the Web to see their position relative to their trading partners, inquire on the status of CHIPS payments and to manage other aspects of their interaction with the CHIPS system.
“We are continually enhancing the system with features like our new web-based tools,” said John Mohr, Chief Operating Officer of CHIPS. “CHIPS goals are to make the system available to more participants, easier to access, and continually improve the efficiency of clearing and settling payments.”
Correspondents and 54 banks use the system to clear and settle U.S. dollar payments around the world. CHIPS is the only bank owned, real-time, large value electronic payments system with EDI (electronic data interchange), clearing and settling more that $1.3 Trillion each day.