CHAPS
CHAPS is a same-day payment service in the UK that enables high-value transactions to be processed electronically and securely between banks and financial institutions.
CHAPS in detail
A CHAPS (Clearing House Automated Payment System) payment is a method of sending GBP within the UK. If you need to pay someone straight away or transfer a large amount of money, CHAPS transfers allow you to make same-day, high-value electronic payments.
CHAPS are typically used by clients who are making high-value, low-volume transactions – generally over £500,000. Payments are processed through The Bank of England (BoE).
Overview
- Immediate Availability: Funds are transferred and accessible to the recipient on the same day as long as the instructions are received before the cut-off time, ensuring that urgent financial obligations are met without delay.
- Ideal for Critical Transactions: CHAPS is particularly beneficial for businesses that need to execute important payments quickly, such as settling large invoices or making time-sensitive investments.
- Trustworthy: CHAPS, overseen by the Bank of England, offers a trusted and secure way for businesses to confidently handle large transactions.
Key features
- Suited to clients looking to make high-value, low-volume transactions such as purchasing expensive equipment.
- No minimum or maximum limit to the amount of money that can be sent.
- Same-day payment is guaranteed if the instruction is received before the cut-off time.
- A reliable payment method operated by the Bank of England.
- Pay immediately or schedule a CHAPS payment for a later date.
- Once a payment is made, it is considered final and irrevocable – ideal for time-sensitive payments.
- Confirmation of Payee (CoP) reduces the risk of fraud losses and misdirected payments by allowing payee account name verification.