UK Banking
Clearing House Automated Payment System
CHAPS (Clearing House Automated Payment System) is the UK's same-day, high-value payment system. Operated by the Bank of England, it settles payments individually and irrevocably in real time, making it the standard channel for large transactions such as property purchases and corporate treasury movements.
A CHAPS payment is routed using a six-digit sort code and account number, similar to other UK payment schemes. Unlike Faster Payments, there is no upper transaction limit, though most banks charge a fee (typically around 25-35 GBP). Settlement is final and same-day, provided the payment is submitted before the daily cut-off time. CHAPS uses an RTGS (Real-Time Gross Settlement) model, meaning each payment settles individually rather than in batches.
CHAPS is essential when payment certainty and speed are critical. In property transactions, solicitors rely on CHAPS to guarantee that funds arrive on completion day. Unlike a wire transfer sent via the SWIFT network, CHAPS operates entirely within the UK domestic banking system, so settlement is guaranteed the same business day.
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