All ICEF Online members receive a Clearing House Service account to use for sending and receiving funds to and from other ICEF Online members.

Q. What is the Clearing House Service (CHS)?

The CHS is a service designed to make the process of moving money across borders, and between currencies, simple and cost effective. Our motto is ‘International Settlement Made Easy!’

Q. What are the benefits and advantages of using CHS, rather than a regular bank?

The main advantages are convenience, ease of use and significantly lower costs. Our funds transfer fees are much lower than the fees most banks charge, and we charge nothing to the party receiving the money. We send you with a weekly statement that allows you to settle all your CHS transactions via a single local currency payment.

Due to the large volumes of business we place with our bank, we offer CHS users exchange rates that are better that the floor rates their bank can offer. Our system allows clients to make payments in local currency through their local banking system. They do not have to pay their own bank for a bank draft or international wire transfer. Everything is treated as a local payment, no matter the destination or currency of the actual payment. Transactions are instigated via our web based entry system. Statements are collected in the same way.

Q. How much will it cost me to send funds via CHS?

CHS fees are straightforward and transparent. There is no fee to join the system, nor any obligation to use it once you’ve joined. Unlike many web based funds transfer operators, we do not make any margin on exchange rates. The only fee charged is 0.7% of the transaction value, with a maximum charge equivalent to GBP 9.00 and a minimum charge equivalent to GBP 4.50. These fees will then be charged to the sender of the funds, in your local currency, or the currency of your CHS account.

Q. Where are CHS exchange rates sourced from?

CHS uses an HSBC online Treasury system to book our currency exchange deals. Due to the large volume of funds we transfer via our bank accounts, CHS are guaranteed to receive very competitive exchange rates, which we then pass on to our users, with no mark-up. Most of our accounts are held with HSBC, and we transfer nearly USD 250 million per annum.

Q. How long does it take to receive a payment?

It takes seven days from us receiving your money to it being credited as cleared funds in the bank account of your receiving business partner.

Q. How secure is my money with CHS?

• 90% of our Bank Accounts are held with HSBC or associated banks.
• The remainder are with highly reputable, well recognised national banks.
• Funds are held in secure and recognised client trust accounts. This ensures all funds are protected and are not available to CEL creditors in the unlikely event of us going out of business. CHS is a trading name owned by Collective Enterprises Ltd (CEL).
• CEL has fidelity insurance covering up to EUR 7.5 million for any one loss.
• CEL has liability insurance to cover errors to the value of up to EUR 1.5 million.

Q. How are disputes handled?

Initially any disputes must be brought to the attention of the CHS management. If no solution can be agreed then the management of both CHS and ICEF Online will mediate.

Q. Why doesn’t CHS have a bank account in my country?

CHS has accounts in 38 countries now and is always prepared to look into opening more. We will only consider opening an account in a currency which is freely tradable on the international markets, and in a country where we can easily move that currency across the border.

Q. Since there is no local account, how can CHS benefit me?

If making single payments, sending money via CHS will incur both your international transfer cost, plus our transaction charge. So on the surface, it may seem that there is no benefit. The CHS, however, is a netting system, so benefits can be realised when you need to make multiple payments at the same time.

Instead of making 10 payments in 10 currencies and incurring 10 sets of charges from your bank, with the CHS you would make only one, lump sum payment to CHS, incurring just one charge from your bank. Then CHS would make 10 individual payments to your 10 receiving partners, in the currencies you requested, at the much lower CHS transaction charge.

Q. Is the CHS service unique, or do other similar companies exist?

Whilst many online foreign exchange companies exist, they are not as focused upon the youth and student travel market as CHS is. We believe their exchange rates are less competitive and their transaction fees are higher. Many do not offer the opportunity to use local banking systems. Our charges are very transparent, unlike some companies that make their money by inflating their foreign exchange rates. We know the student and youth travel markets very well, and tailor our services to suit the needs of this industry.

Q. How long has CHS been operating?

The Clearing House Service was set up in 1979 to help student travel companies make international payments to each other at reduced costs. CEL took over the Service in 1995 and since then has widened its customer base and further developed its systems. We now have bank accounts in 38 countries and deal regularly in 26 currencies. Over 1200 companies actively use CHS.

Q. How many clients does CHS have within the language school sector?

Currently around 80-100 organisations working exclusively within the language school sector use the CHS.

Click here to visit the Clearing House Service website.