CHAPS stands for the Clearing House Automated Payment System. It is an automated payment system used to make sterling payments on the same day in the UK. It provides an international service and is at the heart of the UK’s financial infrastructure, as it is the key vehicle for transferring sterling from one financial institution to another.
CHAPS is used by banks, building societies and other payment service providers to move money around the financial system. However, it is most generally known within the UK as the payment method for house purchases, although this represents only a fraction of 1% of the daily value processed.
CHAPS uses the Bank of England’s Real Time Gross Settlement (RTGS) system. The RTGS system enables CHAPS’ Direct Participants to transfer the funds between their own accounts with the Bank of England.
In 2016, CHAPS processed a record 39.0 million; on average 154,000 per day. The total value transmitted in CHAPS in 2016 was £75.6 trillion; on average £299 billion daily.
CHAPS is open to settle payments via RTGS from 06:00 to 18:00 on weekdays (except Bank Holidays).
Payment service providers usually charge a fee for sending a CHAPS payment. Typically this is between £20 to £30. Individual institutions will be able to advise on their fees, and this information can often be found on their websites.
CHAPS Co is the facilitator of the CHAPS system only, therefore you will need to discuss any issues relating to CHAPS payments directly with your payment service provider.