New York's bank-owned Clearing House Interbank Payment System (Chips) is to begin accepting large value payments transmitted via interbank network SwiftNet.
Chips, which processes $1.3 trillion per day in US dollar transactions, is preparing to migrate from its current X.25 line to a private TCP/IP network. The move, which is scheduled for completion by year-end 2004, will give banks the flexibility to connect to Chips and associated payment systems over standard connections provided by either The Clearing House or by Swift.
Don Monks, senior EVP of The Bank of New York describes the initiative as a milestone in standardising the international large value payments infrastructure. "Having both options available raises the bar in the area of business continuity and resiliency for all payment systems."
John Mohr, Chips chief operating officer says the new network options are part of the utilitie's strategy to Internet and IP-enable all of its payment systems.