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. 

CHAPS’ Direct Participants may be making CHAPS payments on their own account or they may be sending instructions on behalf of their Indirect Participants. 

The transfer of funds is done in real time for each individual CHAPS payment throughout the CHAPS operational day, which eliminates the credit risk between these banks for these payments. The funds are guaranteed to be delivered to the receiving bank and end customer on the same day, and the funds are irrevocable of debit and credit entries on both accounts. 

CHAPS payments and various supporting confirmation and system messages are transferred between the Direct Participants and the RTGS system using the international SWIFT network.


Key Times in CHAPS

  • Start of Business
    The CHAPS system will open for payments at 06:00 on each UK working day. Participants are not obliged to be open for business at 06:00 but must be open by 08:00 and must be sending by 10:00.
  • Close of Business
    MT103 is a single customer credit transfer i.e. customer to customer.
    The latest time a customer MT103 payment should enter the SWIFT Network is 17:40. This will allow a five-minute period to meet the SWIFT Service Level processing time. The last time for receipt by the Real Time Gross Settlement (RTGS) system of inward MT103 payments for same day value is 17:45.  Participants must, at 17:45, cancel any customer payments for which settlement requests are on the funds queue.
    MT202 is a general financial institution transfer ie Bank to Bank.
    MT202 payments, which may be made between 17:40 and 18:00 are Settlement Period Payments, unless bi-laterally agreed. The last time for receipt by the RTGS system of inward MT 202 payments for same day value is 18:00.