CHAPS

What is the Cleaning House Automated Payments System (CHAPS)?

CHAPS is a payment mechanism for high-value payments, conducted within the UK using pound sterling. 

Various companies have operated the system since 1984, when the Bankers Clearing House established it in London, and the Bank of England took over this responsibility in 2017. 

How to make a CHAPS Payment?

Making a CHAPS payment is easier than it may sound, as it is similar to making your everyday bank transfer. Simply visit your local branch or go to your bank’s online website and ask to set up a CHAPS payment with all payment and payee details in hand. 

People use CHAPS payments because they tend to be time-sensitive and high-value. Think of it as a valet pass for making high-priority payments such as taxes or house deposits. CHAPS transfer times are usually fast, taking less than a day. 

How long does a CHAPS payment take?

The CHAPS payments are typically processed within the same day. The system operates on weekdays between 6 AM and 6 PM for bank-to-bank transfers, though different banks may have their own cut-off time. Please contact your bank regarding CHAPS cut-off times to ensure your payment process goes through without disruptions. 

Are there limits and fees for CHAPS Payments?

While there is no minimum or maximum limit for CHAPS payments, every bank has a payment threshold where payments must be sent with CHAPS. In addition, banks typically charge a small fee (£20–35) for making CHAPS payments.