PNC will expand its payment options for real-time, large dollar payments with the addition of CHIPS, The Clearing House Payments Company announced today.
"PNC is committed to enhancing technology that benefits customers with a more efficient and easier means of doing business," said Steve Stone, Senior Vice President of Treasury Management Operations at PNC. "CHIPS provides our customers with a new option for executing wire payments in the U.S. and internationally."
CHIPS is a premier wire transfer system with exceptional performance, operating at nearly 100% uptime year after year. CHIPS is the only large value payment system where extensive invoice-related information can be included with the payments - a feature that businesses need to help automate their accounts receivable processes. In 2007, CHIPS experienced double-digit growth in transactions and dollar value, and surpassed its previous volume records set in 2006.
"CHIPS provides PNC with an opportunity to offer wire transfer payments the way customers would like - with detailed invoice information with each payment," said Hank Farrar, Senior Vice President of The Clearing House, responsible for CHIPS.
CHIPS streamlines operations for financial institutions, with features such as multilateral netting - a patented process that maximizes the use of liquidity and reduces daylight overdraft charges. A single dollar in the CHIPS system turns over on average 600 times a day and is used by the netting process to clear payments throughout the day.
"The efficient use of funds is a real benefit of CHIPS and one of the reasons CHIPS is increasingly popular among financial institutions," Farrar said. "With CHIPS, PNC will be able to differentiate itself in the marketplace."