Domestic
PAYMENTS SIGNAL · REFERENCE CARDA CHIPS payment (netting then settlement)
A dollar payment is released against running net positions during the day and is final once released. Only the leftover net balances settle across Fedwire at the close — far less cash than paying each one gross.
Actors
- Originator (payer)customer
- Bank Alfa (sending participant)bank
- CHIPSinfrastructure
- Cassia Bank (receiving participant)bank
- Beneficiarycustomer
Messages
No standard message — a book / internal transfer.
The sequence
| # | Step | Route | Kind |
|---|---|---|---|
| 1 | Instruction — The originator requests a payment | Originator → Bank Alfa | message |
| 2 | Debit originator — Bank Alfa debits the originator | Bank Alfa | posting |
| 3 | Submit to CHIPS — Bank Alfa submits the payment to CHIPS | Bank Alfa → CHIPS | message |
| 4 | Match & release — CHIPS releases the payment against net positions | CHIPS | clearing |
| 5 | Released advice — Cassia sees the released payment | CHIPS → Cassia | message |
| 6 | Credit beneficiary — The beneficiary is credited | Cassia | posting |
| 7 | End-of-day net settlement — The net positions settle over Fedwire | Bank Alfa → Cassia | settlement |
Exception rails
| Rail | Trigger | Where the money ends up | Next action |
|---|---|---|---|
| Held for a net position | Bank Alfa's outgoing payments exceed its incoming ones, so there is no room to release the payment yet. | Debited from the originator; the beneficiary is paid once offsetting flows let CHIPS release the payment. · The payment waited in the queue for a net position rather than settling gross — the essence of liquidity-saving netting. | CHIPS — Participants manage the timing of their outgoing payments so queues clear well before the close. |