Payments Company shared board seat

• City National
• Fifth Third Bank
• First Citizens
• M&T

Clearing House Interbank Payments System

The Clearing House Interbank Payments System (CHIPS) is a bank owned automated funds-transfer system for domestic and international high value payment transactions in U.S. dollars. It is a real-time final settlement payment system that continuously matches, off-sets and settles payments among international and domestic banks.^[3]

CHIPS provides real-time, immediate and final settlement of payment messages continuously throughout the day similar to Fedwire. During the business day, system participants can send their payments to CHIPS. Funds are released by available funds on hand (no overdrafts are permitted) or through offsetting. A “balance release algorithm” continuously searches the queue of unreleased payments and uses this patented off-setting algorithm to match and release payments.

CHIPS’ ability to perform real-time bilateral and multi-lateral off-setting means that very large payments can be released earlier in the day, and that participants realize greater liquidity efficiency savings than those possible in pure RTGS systems. With real-time off-setting, the system continuously offsets payments between two or more CHIPS participants. A payment is considered final and irrevocable at the instant CHIPS releases it. ^[4]

Since CHIPS’ inception The Clearing House management has implemented a number of credit, systemic and liquidity risk reduction measures to better manage individual participant risk, eliminate daylight overdraft exposure, and virtually eliminate systemic risk.^[5]

CHIPS provides financial institutions an alternative to the Federal Reserve's Fedwire service.

Electronic Payments Network

Electronic Payments Network (EPN) is an automated clearing house (ACH), i.e. a computerized, batch-processing funds-transfer system that processes domestic consumer and commercial financial transactions among depository institutions. Rather than sending each payment separately, ACH transactions are accumulated and sorted by destination for transmission during a predetermined time period.^[6]

The Automated Clearing Exchange System (ACES) is the core computerized system for EPN processing of payments between account holders at depository financial institutions. EPN serves approximately 450 processing customers. EPN participants include Depository Financial Institutions (DFI) throughout the United States and its territories as part of a nationwide network for domestic commercial banks, thrifts, credit unions and agencies of foreign institutions.^[7]

EPN provides financial institutions an alternative to the Federal Reserve's FedACH service.

Real–Time Payments

The Clearing House Payments Company operates the RTP (Real–Time Payments) service which facilitates instant payments for customers of its member banks.^[8] As of 2023, approximately 300 financial institutions subscribe to the service. Six years after RTP's introduction in 2017, the Federal Reserve began offering the competing FedNow service.

SVPCO

SVPCO is The Clearing House's line of business that operates CHECCS, which is a computerized settlement system.

SVPCO Online Adjustments provides a secure online database to automate cash letter adjustments.

SVPCO Online Settlement is integrated with the SVPCO Image Payments Network and provides automated settlement for cash letter activity. It also works in tandem with SVPCO Online Adjustments, which allows institutions to reconcile adjustments the same day by eliminating the need for paper forms and attachments.^{[citation needed]}