What Is A CHAPS Payment? | CHAPS Transfers – HSBC UK (2024)

FAQs

What Is A CHAPS Payment? | CHAPS Transfers – HSBC UK? ›

A CHAPS payment is a same-day transfer between banks that can be used for large amounts of money. 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.

Payments to friends and family can be made up to your personal payment limit. Payments above these limits will be sent as a CHAPS payment. You can do this over the phone, in branch or by post. To make a CHAPS payment in branch, you'll need to bring valid ID and the details of the person you want to pay.

CHAPS is a sterling same-day system that is used to settle high-value wholesale payments as well as time-critical, lower-value payments like buying or paying a deposit on a property. The CHAPS system is usually open from 6am to 6pm, Monday to Friday (excluding bank or public holidays in England and Wales).

Swift payments vs CHAPS

With CHAPS you can send high value payments within the UK and make same-day transfers in GBP. This speedy service has fees applied to it. With Swift payments you have the security of tracked international payments, in any currency. Transactions can be slow, taking one to five working days.

CHAPS is a way of sending money that's guaranteed to arrive on the same day you send it. This is useful if: You want to send an amount of money above the Faster Payments limit.

One of the main disadvantages of the scheme is cost. CHAPS payments can be expensive, with most banks charging a fee for the service. The cost of the transaction is usually higher than other payment methods, on average around 25 GBP, but CHAPS charges vary from bank to bank.

CHAPS is a more expensive payment option because your bank has to pay for the software and hardware needed to complete the transfer. It costs somewhere between £25 and £35 per transaction, so CHAPS tends to be reserved for high-value transactions. Bacs is a much cheaper way of transferring money between banks.

CHAPS – also known as Clearing House Automated Payment System – is a type of high-value, bank-to-bank payment system that provides irrevocable, settlement risk-free, and efficient payments. Most traditional high-street banks are direct participants in CHAPS, as are a couple of international and custody banks.

For UK payments, the daily limit for online and mobile bank transfers is £25,000 per account. If you need to transfer a larger amount, for example making a deposit on a house, you'll need to make a CHAPS payment. This can be done in branch and has no upper payment limit.

In most cases, funds arrive in the recipient's bank account within seconds. Faster Payments may occasionally take up to 2 hours to go through but this is uncommon. However, you should use these timeframes as a general estimate.

What is the US equivalent of CHAPS? ›

The Clearing House Interbank Payments System (CHIPS) is a United States private clearing house for large-value transactions.

Are CHAPS payments secure? As CHAPS is operated by the Bank of England, it's considered a safe and secure way to transfer funds. A bank or building society must meet strict technical criteria to use CHAPS, such as access to the SWIFT network (a secure financial messaging service).

CHAPS (abbreviated from Clearing House Automated Payment System) is another payment method used in the United Kingdom that was created for the quick movement of high-value payments in pounds sterling to businesses.

Payments above your limit will be sent as a CHAPS payment. If you're an HSBC customer, you can send a CHAPS payment by phone, post, or in branch. To make a CHAPS payment in branch, you'll need to bring valid ID and the details of the person you want to pay. Our branch finder can help you find your nearest branch.

If an error is made on a CHAPS form, the payer should seek urgent relief in the form of a freezing order against the unintended recipient.

Clearing House Automated Payment System (CHAPS) is a same-day electronic payment system for processing payments in GBP (Pounds Sterling).

There's a £25 fee for each CHAPS payment. You don't have to use CHAPS payments – you can transfer money for free using Faster Payments. As long as the sending and receiving bank or building society uses Faster Payments too, the payment will arrive almost immediately (though sometimes, it can take up to 2 hours).

Faster Payments is also available any time, any day, while CHAPS is only available during working hours between Monday and Friday. While CHAPS is a same-day payment transfer service, Faster Payments is a lot quicker, often moving the money between accounts within seconds.

CHAPS (Clearing House Automated Payment System) is a Telegraphic Transfer system which allows you to make same business day withdrawals and deposits for your savings accounts.

BACS stands for Bankers' Automated Clearing System. It's a regulated payment system run by Bacs Payment Schemes Limited (now Pay.UK) and is one of the most common ways that money is sent and received from bank to bank.