CHAPS is a United Kingdom payment system used to send high value and time critical sterling payments that settle on the same working day, with no upper limit on the amount sent.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How CHAPS works
CHAPS, short for Clearing House Automated Payment System, is operated by the Bank of England and settles each payment individually and in real time rather than in batches. When a business asks its bank to send a CHAPS payment, the instruction is processed through the Bank of England settlement system and reaches the recipient bank on the same working day, provided it is submitted before that bank's cut off time. There is no upper limit on the amount that can be sent through CHAPS. Because each payment settles on its own, the recipient can rely on the funds arriving that day, which is why CHAPS is described as offering same day, high value settlement, current as of 6 April 2026.
CHAPS, Faster Payments, and Bacs
The United Kingdom has several ways to move money, and they suit different needs. CHAPS is generally used for high value or time critical sterling payments that must settle the same working day, and it usually carries a fee. Faster Payments moves most everyday payments between accounts within seconds at any time, though banks set their own sending limits. Bacs handles bulk and routine payments such as salaries and direct debits and typically takes a few working days to clear. The right method depends on the amount, how quickly the payment must arrive, and any fee the bank charges.
Why it matters to a business
For a business, CHAPS provides certainty that a large or urgent payment will reach the recipient the same working day, which matters for property completions, large supplier settlements, or time sensitive transactions. Banks typically charge a per payment fee for CHAPS, and each bank sets its own cut off time after which a payment moves to the next working day. Because fees and cut off times differ by bank and account, a business should confirm the current charge and the deadline with its provider before relying on CHAPS for a same day payment.
Frequently asked questions
What is CHAPS?
Is there a limit on a CHAPS payment?
How long does a CHAPS payment take?
Does CHAPS cost money?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 6 April 2026. Confirm current terms with the provider before applying.