CHIPS to Employ SWIFTNet for Large Value Payments
The US’s Clearing House Interbank Payment System (CHIPS) is to begin accepting large value payment transactions via SWIFTNet in addition to accepting them over its private TCP/IP Network. The move will allow CHIPS customers to benefit from communications flexibility and efficiency, while the industry will benefit from improved resiliency of the global payments infrastructure, according to CHIPS. ‘It is a major milestone in improving and standardizing the international, large value payments infrastructure,’ said Don Monks, Senior Executive Vice President of The Bank of New York. ‘Having both options available raises the bar in the area of business continuity and resiliency for all payment systems,’ he said. Today, CHIPS uses an X.25 standard and later this year will be moving to a TCP/IP protocol as well as offering the SWIFTNet option. CHIPS customers will have the flexibility to connect to CHIPS and other payment systems managed by The Clearing House over standard connections provided by either The Clearing House or by SWIFT. The enhanced diversity also gives customers the advantage of higher reliability and resilience, said CHIPS. The improved connectivity options will be available for new and existing CHIPS customers by the end of this year.