A high-speed electronic link in the USA between the 12 Federal Reserve Banks and the Treasury, used to move large sums of money for themselves and their customers. The transactions are often completed within minutes of being initiated.
A wire transfer system for high-value payments operated by the Federal Reserve System.
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- CHIPS provides real-time, immediate and final settlement of payment messages continuously throughout the day similar to Fedwire.
- The transfer messages are sent via a secure system ( such as SWIFT or Fedwire ) utilizing IBAN and BIC codes.
- Unlike the Fedwire system which is part of a regulatory body, CHIPS is owned by the financial institutions that use it.
- In addition, the Fed's " Fedwire " system allows banks to transfer reserves between themselves for business customers.
- Such services include the clearing of checks, the operation of the Fedwire system, and the procession of automated clearing house payments.