CHIPS: The Worlds Premiere Real-Time Payments System

CHIPS provides the liquidity, resiliency and operational efficiency your financial institution requires from a real-time funds transfer system and offers unique features to set your corporate service offering apart. With CHIPS you can: Provide secure, reliable real-time payments with finality Improve liquidity and operational efficiency Facilitate electronic business-to-business payments

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For more than 35 years, CHIPS has proven to be a offering real-time pa

Outstanding System Performance, Resiliency and Service
CHIPS is the leading private-sector wire transfer system, clearing more than $1.4 trillion in payments each day. No Settlement Risk - CHIPS uses a unique bi-lateral and multi-lateral netting capability that continuously matches, nets, and releases final payments in a matter of seconds. Using this patented algorithm, settlement risk is eliminated. System Performance CHIPS delivers nearly 100% availability year after year. Security and Resilience CHIPS systems meet the highest standards for security and resiliency. Multiple hot backup sites are tested regularly and can take over in a moments notice if needed. That means you can count on CHIPS to assure that your customers high-value critical payments go through, in any situation. Customer Service Our experienced team is dedicated to its customers and has relentless attention to detail. On annual surveys, customers consistently rate CHIPS above 4.5 on a 5 point scale for overall satisfaction (in recent years, the rating has been 4.9!). Global Processing Hours - CHIPS helps your payments business cover every time zone in the worldin real time. With Global Processing Hours, financial institutions with customers doing business across the continents can offer payment processing with more convenience, reduced risk and improved liquidity.

Liquidity Management and Operations Efficiency

Liquidity Efficiency Each day, CHIPS participants fund the system with balances that facilitate the processing of the days payments. Using CHIPS netting process, you only need to fund a fraction of your total payments for the day, which frees up your banks liquidity for other cash management purposes. In CHIPS, a dollar turns over 500 times per day, which is significantly better than other payment systems. With only $2.8 billion in prefunding, CHIPS is able to process payments worth more than $1.4 trillion each day. Funding Requirements $2.8 Billion Payments Processed $1.4 Trillion

The Experience You Need CHIPS transfers an average total value of more than $1.4 trillion a day, with only $2.8 billion in prefunding. CHIPS processes over 285,000 payments on an average day.

a highly effective and efficient payments system, ayments with finality.

No Daylight Overdraft Charges with CHIPS payments Daylight overdraft charges can be a multimillion dollar expense for banks, but not for those using CHIPS. With CHIPS patented prefunding and netting process, CHIPS participants incur no overdrafts and, therefore, no daylight overdraft charges. 94% Straight-Through Processing (STP) Rate More than 94% of CHIPS payments require no manual intervention by the receiving institution. This is the best payments STP rate in the business! Automatic posting and immediate availability of funds mean faster, more efficient operations and better service to your best and most demanding customers. Online Management Tools CHIPS customers can use the web to view management information from anywhere in the world. Financial institutions can access payment positions and other information to make better cash management decisions, and can take advantage of new system enhancements without having to make software changes. For example, Payments on Demand is a web-based tool that lets you designate high priority payments for immediate release.

Enhance Your Service Offering with Unique Business-to-Business Features

Remittance Information Delivery Capability CHIPS can deliver remittance information with every payment, so companies can reconcile and post payments more easily. Up to 9,000 additional characters are available in the payments message for customer numbers, invoice numbers, discounts taken and more. CHIPS supports ANSI X.12 820, UN/EDIFACT and user-defined XML formats and is also compatible with the SWIFT MT103 remittance format. Universal Identification Numbers (UIDs) The UID assures that your customers private account information stays that way. Payers only need the bank name and UID number to process any transaction. The database is updated daily and is used to match a customers UID with the associated bank account information.

The Types of Payments You Need... Domestic and international payments Large and small payments U.S. dollar foreign exchange settlements Financial settlements (ex. Loan and interest payments) Commercial payments Off-shore investments

Easy Access to CHIPS

Multiple Connectivity Options. Financial institutions can connect to CHIPS using our Private IP Network and/or SWIFTNet. For added resiliency, financial institutions can choose both connectivity options, using one as primary and the other as a back-up. Turnkey Interface Solutions. Working with a CHIPS Network Partner, financial institutions can obtain a cost-effective CHIPS interface. CHIPS interface software is available through the following partners:

KEYSTONE COMPUTER ASSOCIATES, INC.

Switching to CHIPS is Easy

Were here to guide you from concept to implementation. Exploratory discussions Well listen to your needs and determine how CHIPS can help you meet your objectives. Tailored Business Case Well develop a business case that will show how CHIPS can help your organization. Easy Implementation A team of experienced project managers will guide you through testing and implementation

Taking the Next Step

To learn more about CHIPS, contact: 212.613.0105 or info@chips.org

www.chips.org
CHIPS is a business of The Clearing House Payments Company L.L.C. copyright 2006 4/06