CHIPS Payment System
About CHIPS Payment System
The Clearing House Interbank Payments System was established in 1970 as an electronic replacement for paper check clearing. CHIPS processes large value international payments between banks. Over 40 banks participate. CHIPS settles 1.8 trillion daily, accounting for over 40 percent of all cross border payments in dollars. CHIPS operates on a net settlement basis, reducing the amount of money that needs to change hands. The system upgraded to real time gross settlement in 2001. CHIPS is operated by The Clearing House, a banking association owned by major US banks. Along with Fedwire, CHIPS is one of the two main large value payment systems in the US.
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