PNC Joins The Clearing House’s Network For Large-Scale Payments Processing

PNC Bank has joined The Clearing House’s CHIPS network to enable it to “clear and settle high-value and cross-border payments,” per a press release.

“PNC is pleased to join CHIPS, providing our customers access to the preeminent high-value international and domestic wire-transfer system,” said Chris Ward, executive vice president and head of product and operations, PNC Treasury Management, in the release. “PNC’s Treasury Management platform continues to bring dynamic payment solutions to meet our clients’ needs.” According to the release, PNC Bank is “one of the largest diversified financial services institutions in the United States.”

The Clearing House Interbank Payments System (CHIPS) processes checks and bills from member banks. It is the primary clearinghouse in the U.S. for large banking transactions. The CHIPS “settlement algorithm … helps clear a high percentage of volume earlier in the day,” the company said.

The release noted that The Clearing House (TCH) operates U.S-based payment networks that clear and settle more than $2 trillion each day. “CHIPS is the premier USD clearing platform for international payment activity, with approximately 95 percent of CHIPS payments having a cross-border leg,” per the release.

The pandemic’s year of trial-by-fire has also set the stage for some major advances in 2021. In an interview with PYMNTS, Russ Waterhouse, TCH’s executive vice president of product development and strategy, said the surge in digitization brought on by the COVID-19 crisis has accelerated the evolution of a range of real-time payments network advancements.

“The promise [of real-time payments] was that it was always going to be faster, safer and smarter,” Waterhouse said. “We delivered the faster part, but we haven’t completely tackled the safer, smarter part. I think this year will be about demonstrating and delivering on those two characteristics.” One example is the increased sharing of account information through third-party apps to support consumers’ desires. However, it is not without its risks.

Waterhouse added that while actual instances of fraud are low, it’s better to be prepared than to be caught off guard: “You don’t want to see [fraud rise] in a big way before you try to do something about it.”