CHAPS (Clearing House Automated Payments System) is an electronic bank-to-bank same-day value payment made within the UK in either sterling or euro. The main benefit of CHAPS is that it is fast, secure and efficient and the money is transferred the same day.
Payments can be made for any amount and, unlike other forms of payment such as cheques, CHAPS payments are irrevocable.
- Helps you manage your business cash flow by providing speed and certainty of payment
- Provides a very secure method of making business payments.
CHAPS is one of the largest real-time gross settlement (RTGS) systems in the world. Banks themselves use CHAPS to move money around the financial system, but it is also used regularly:
- for business-to-business payments;
- by solicitors/licensed conveyancers to transfer the purchase price of a house between the bank accounts of those involved;
- by individuals buying or selling a high-value item, such as a car, who need a secure, urgent, same-day guaranteed payment.
The downside of CHAPS payments is that the processing cost is relatively expensive; typically, some £20 per transacation.